| Latest Forum Topics / Straits Times Index |
 Post Reply
|
|
News Update!
|
|
|
krisluke
Supreme |
17-Jul-2013 12:27
|
|
x 0
x 0 Alert Admin |
Here's What Experts Expect Bernanke To Say When He Speaks To Congress On Wednesday 
Federal Reserve Chairman Ben Bernanke heads to Congress to speak to the House Financial Services Committee on Wednesday at 10:00 a.m. ET and then to the Senate Banking Committee on Thursday at 10:30 a.m. ET.
" Bernanke probably will not dissuade the markets of the notion that a tapering is likely as soon as September. But his comments may sound dovish as he reiterates that any change in the size of asset purchases is dependent on the economic data and on financial market conditions. The run-up in yields in recent weeks, for example, practically demands that Bernanke comment specifically on the risks posed by tighter financial market conditions. He may also focus on the risk of lower-than-desired inflation... ...We assume this will be Bernanke's final semiannual testimony. Will he reveal his intentions regarding a third term? Possible, but not probable."
The Chairman technically will be speaking on behalf of the FOMC so his commentary may not be as overtly dovish as his recent remarks at the NBER conference he will likely reiterate the Fed’s desire to begin tapering asset purchases sometime this year and highlight the progress made in the labor market since the Fed embarked on QE3 last September. If any new ground is broken, we may get a better sense of when the committee expects asset purchases to end, which may be sooner than investors currently anticipate since we learned in the latest minutes that half of FOMC participants saw purchases concluding by year end. Most importantly, pay attention to the Q& A session because this is where Bernanke has tended to provide the most market pertinent information.
In today's testimony we expect to see more of " good Ben" , and his remarks should again emphasize the data- dependency of any tapering action. He is also likely to shy away from any mention of " September" as other Fed officials have indicated, though he will continue to reference the " later this year" theme - as he has in the past. More importantly, even when referring to tapering, Bernanke is likely to emphasize the dovish forward guidance to good effect, dwelling on the reference to the reduction in purchases taking place in " measured steps" . In the context of his appearance before lawmakers, one key consideration for the market will be whether Bernanke continues to emphasize the drag from fiscal austerity. In particular, it would be interesting to see whether the recent disappointment on the data front causes any discernible shifts in the Fed's assessment on the impact of fiscal policy tightening on the real economy or a reassessment on the relatively optimistic economic outlook presented at last month's FOMC meeting. However, on the labor market and inflation front, the Chairman is likely to stick to the recent script of " the downside risks to the outlook for the economy and the labor market have diminished since the fall" and " the Committee expects inflation to move back towards this 2 percent longer-term objective over time."
The Fed chairman will probably be less market-moving today than he was on May 22, June 19 and July 10. However, if anything, we suspect he will be the “good cop” from July 10 more than the “bad cop” from May 22 and June 19. Note that Mr. Bernanke’s prepared text and the Monetary Policy Report will be released at 8:30 EDT—before the formal testimony at 10:00 EDT. That change was announced earlier this week. By now, the chairman’s message is fairly clear: Yes, we plan on scaling down the asset purchase program soon, but, no, we will not be shrinking the balance sheet or raising policy rates for some time. Policy needs to and will remain highly accommodative for a while. And remember, the 6.5% unemployment rate marker is a threshold for possible tightening, not a trigger.
...I suspect that Mr. Bernanke will try very hard this week not to rock the boat – particularly given that global growth is slowing and, based on available partial data, U.S. GDP expansion is tracking only around 1.2% for the second quarter. Look for Mr. Bernanke to try to strike a delicate balance: reassuring us that the Fed remains committed to supporting the economy, but also seeking to avoid encouraging additional artificial asset pricing that would further disconnect markets from underlying fundamentals. It is indeed a high wire act for the Chairman – and with an important qualification. Unlike the usual setup, Mr. Bernanke is not interested in creating lots of excitement. Let us hope that he has the agility to deliver the delicate balance, along with cooperating cross winds. |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
17-Jul-2013 12:20
|
|
x 0
x 0 Alert Admin |
Facing lawmakers, Bernanke to walk a fine line on Fed policy
* Bond-buying center stage in congressional testimony
* Anxious investors focus on when QE will be reduced * Testimony presents two-day communications challenge By Jonathan Spicer July 17 (Reuters) - Federal Reserve Chairman Ben Bernanke on Wednesday is expected to balance a message of enduring central bank support for the U.S. economy with a reminder that the Fed's ultra-easy policies cannot last forever. The head of the U.S. central bank will probably seek to use his testimony to Congress on monetary policy to calm the nerves of jittery investors worried about life without the Fed's $85 billion in monthly bond purchases. Bernanke set off a brief but fierce global market sell-off last month when he outlined plans to reduce the quantitative easing program, and he has joined a slew of Fed officials since then who have spelled out their intention to keep interest rates near zero well after the asset purchases end. " They are trying to finesse this idea of a possible near-term scaling back of QE with the message that they're going to stay super accommodative for a long time," said Robert DiClemente, managing director of economic and market analysis at Citigroup. " That's a tough line to walk." The hearing on the Fed's semiannual monetary policy report before the House of Representatives Financial Services Committee begins at 10 a.m. (1400 GMT). But the panel plans to make Bernanke's prepared remarks public at 8:30 a.m. (1230 GMT), an hour before U.S. stock markets open. A second hearing is scheduled for Thursday with the Senate Banking Committee, setting up a two-day communications challenge for a Fed that has struggled in the last couple of months to clarify its policy intentions - and that has even gone so far as to accuse financial markets of over-reaction. Under the timeline Bernanke gave on June 19, Fed policymakers expect to reduce their monthly bond buys later this year and to halt them altogether my mid-2014, as long as the economic recovery unfolds as expected. Bernanke's comments last month sparked a sell-off in riskier assets, and yields on the benchmark 10-year U.S. Treasury neared a two-year high. The sell-off has since abated in part thanks to soothing comments from central bankers both here and in Europe who tried to assure investors that policies would remain easy for a long time to come. STILL EASY AFTER ALL THESE YEARS The Fed has held overnight interest rates near zero since December 2008, while more than tripling its balance sheet to about $3.46 trillion with a series of bond purchase programs. While the end of the Fed's bond buying appears in view, officials have emphasized that they will keep rates near zero at least until the unemployment rate falls to 6.5 percent, as long as inflation remains in check. Most do not expect rates to rise until sometime in 2015. Last week, Bernanke said a " highly accommodative policy is needed for the foreseeable future" because inflation is low, near 1 percent, and unemployment high. The jobless rate stood at 7.6 percent last month. Since then, data has shown that inflation firmed last month and that confidence among home builders soared to a 7-1/2 year high this month. Still, retail sales were weak in June, and second-quarter GDP is expected to come in at around a dismal 1 percent annual rate, painting a very mixed picture for Bernanke as he faces two days of questions from lawmakers. The Fed chairman, whose second term expires in January, may be asked about his future plans, given widespread speculation that he is not interested in a third four-year term. Lawmakers could also try to pin him down on when, and by how much, the accommodative bond-buying will be trimmed. " Bernanke will likely speak tomorrow about the slow economic growth, but it's too early for the Fed to tip its hands on the calibration of QE3," said Robert Dye, chief economist at Comerica in Dallas. " They want to see as much data as possible before making that commitment." Complicating things, minutes from the Fed's June meeting showed about half of the central bank's 19 policymakers expected to end the bond purchases before the end of the year. That would be at least six months before Bernanke said the narrower 12-member policy-setting committee predicted it would happen. The purchases are meant to depress longer-term borrowing costs and spur investment, hiring and economic growth. Although the second quarter is shaping up to be even weaker than the already disappointing first quarter, job growth has been reasonably strong, and most Wall Street economists now expect the Fed will trim QE at its September meeting. There is another policy meeting set for July 30-31. In a note to clients, RBS strategists wrote that Bernanke needs to address the question of timing on Wednesday. " I suspect the jury is still out at the Fed, so (Bernanke is) likely to tell us they are data dependent and tapering is coming some time over the next several meetings, leaving the markets a bit in the wind, volatile, and back to data watching." |
| Useful To Me Not Useful To Me | |
|
|
|
|
krisluke
Supreme |
17-Jul-2013 12:19
|
|
x 0
x 0 Alert Admin |
Summer Slam 2013 Stay Tune !! |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
17-Jul-2013 12:18
|
|
x 0
x 0 Alert Admin |
Nikkei falls on weak global shares, strong yen Bernanke in focus
Tokyo Stock Exchange's Market Center, where floor trading took place until 1999.
* Mitsubishi Motors soars on dividend hike report By Ayai Tomisawa TOKYO, July 17 (Reuters) - Japan's Nikkei share average fell on Wednesday as weakness in global markets and the strong yen soured sentiment, with investors also cautious ahead of the U.S. Federal Reserve chairman's appearance before Congressional committees. The Nikkei dropped 0.8 percent to 14,486,27 in mid-morning trade, with a support level seen at 14,400. The dollar dropped 0.70 percent to 99.14 yen on Tuesday on expectations that Bernanke's testimony will reiterate that U.S. monetary policy will remain extremely accommodative. Exporters led the declines, with Advantest Corp falling 2.9 percent, Nikon Corp dropping 1.7 percent and Sony Corp shedding 0.6 percent. Bucking the weak trend, Mitsubishi Motors Corp soared more than 10 percent after the Nikkei said the carmaker will likely pay out 30 to 40 percent of its profit to shareholders for the year through March. Market analysts said that with some technical signs starting to show that the Nikkei would soon be overbought, a temporary correction is possible. The Nikkei is currently trading 6.2 percent above its 25-day moving average of 13,644.33. " Investors are staying on the sidelines before the big events. They hesitate to take large positions before (Federal Reserve Chairman Ben) Bernanke's testimony and Japan's upper house election," said Toshihiko Matsuno, a senior strategist at SMBC Friend Securities. " Investors are focused on when the Fed will scale back stimulus, and while the LDP's victory is widely expected, they want to see the results before they bet on anything." The Topix shed 0.2 percent to 1,208.15. Prime Minister Shinzo Abe's Liberal Democratic Party-led bloc is expected to win a hefty majority in the upper house election on July 21, ending a " twisted parliament" in which the opposition controls the upper chamber. " Since an LDP/Komeito majority is widely expected by investors, the net impact on the equity market would be neutral, or potentially positive if the LDP wins a landslide victory," Goldman Sachs wrote in a report. " If, however, the LDP/Komeito parties secure less than 64 seats, investors are likely to be disappointed since the 'twisted Diet' situation would persist, making legislation passage difficult." Market players said the market would shift its focus to fundamentals after the election. April-June earnings are likely to show solid results on factors such as improving domestic economic conditions, recovery of U.S. demand, and depreciation of the yen against the dollar since the same quarter last year. " I expect that autos, electronics and semiconductor manufacturing equipment makers will benefit from such good factors," said Yutaka Yoshino, chief technical analyst at Nikko Cordial Securities. " Some of these stocks have outperformed the market even during the Nikkei's correction phase in June, and these companies will likely continue outperforming." The Nikkei has fallen 9.1 percent from this year's peak of 15,942.60, but is still up 40 percent this year. |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
16-Jul-2013 11:16
|
|
x 0
x 0 Alert Admin |
Australia shares edge up 0.1 pct on Wall St lead in cautious trade
The Sydney Opera House and harbor bridge are seen at dusk
SYDNEY, July 16 (Reuters) - Australian shares edged up 0.1 percent in late morning trade on Tuesday following Wall Street's record closing highs, but traded in thin volume as investors fretted over global economic growth - particularly in China, Australia's biggest customer. Major banks lifted the index. Top lender Commonwealth Bank of Australia edged up 0.6 percent, while Westpac Banking Corp climbed 1.2 percent. The S& P/ASX 200 index rose 5.8 points to 4,986.9 by 0138 GMT. The benchmark rose 0.2 percent on Monday. The index edged up slightly after the Reserve Bank of Australia published minutes of its July meeting, which noted that the weakening Australian dollar added to inflation risk, but still kept its easing bias. The local market took a positive lead from Wall Street, with both Dow Jones industrial average and the S& P 500 finishing at record closing highs on Citigroup's strong earnings. " We're looking towards the U.S. reporting season with expectation of 2 percent rise in earnings this quarter," said Martin Lakos, a division director at Macquarie Private Wealth in Sydney. " Domestic investors are looking towards our own reporting season which kicks off towards the end of the month. A positive for earnings in the U.S. markets will assist our market sentiment," he added. Australian stocks have also been buoyed by assurances the Federal Reserve's stimulus drive will be kept on longer and China's GDP growth coming in as expected, analysts said. The benchmark has kept rising for six straight days. The trading volume was thin, though, as investors were still cautious about the global economic outlook, said Martin Angel, a dealer at Patersons Securities in Perth. " People may have just stopped the mass-selling. People are hoping the market will rebalance from here, but they are still very cautious about where the world economy is going," he said. " That's why you don't get strong volumes." Global miner BHP Billiton Ltd gained 0.4 percent, while rival Rio Tinto Ltd edged down 0.4 percent. Rio is due to report its June quarter production later on Tuesday. Consumer stocks traded lower. Supermarket Woolworths Ltd lost 0.3 percent, and rival retailer Wesfarmers Ltd dipped 0.2 percent. Australia's biggest phone company, Telstra Corp Ltd, added 0.6 percent. New Zealand's benchmark NZX 50 index eased 0.3 percent to 4,592.3. STOCKS ON THE MOVE * Paladin Energy Ltd rallied 8.9 percent to a nearly 4-month high of A$1.05, after the company reported strong sales revenue for the June quarter and said its annual revenue was up 23 percent on the previous year. (0120 GMT) * Australian independent oil and gas company Strike Energy Ltd surged 15 percent to A$0.12 after the company said it signed a supply contract with explosives maker Orica Ltd . (0131 GMT) * Perseus Mining Ltd dived 18.2 percent to A$0.54, after it said late on Monday that it expected lower production in the year to June 2014 from the year just ended and it had also deferred a decision on developing the Sissingue gold project in Cote d'Ivoire. (0117 GMT) * Treasury Wine Estates plunged 7.9 percent to A$4.71, continuing to slide after the company said on Monday it was destroying some of its aged U.S. inventory, resulting in a A$160 million ($145 million) hit to pre-tax earnings in fiscal 2013 and lower U.S. shipments in fiscal 2014. (0114 GMT) (Reporting By Maggie Lu Yueyang Additional reporting by Michael Sin Editing by Eric Meijer) |
| Useful To Me Not Useful To Me | |
|
|
|
|
krisluke
Supreme |
16-Jul-2013 11:14
|
|
x 0
x 0 Alert Admin |
Nikkei rises to 7-1/2-week high on strong global lead, weaker yen
Prices are shown on the Tokyo stock exchange ticker board
* Blue-chip exporters lead gains on weaker yen * Nikkei may top 15,000 in early August - analyst By Tomo Uetake TOKYO, July 16 (Reuters) - Japan's Nikkei share average rose to a 7-1/2-week high on Tuesday morning, helped by gains in Wall Street and Asian equities, while a weaker yen also provided a boost to blue-chip exporters. The benchmark Nikkei rose 0.8 percent to 14,621.16, a level not seen since May 24, in mid-mornig trade. The broader Topix advanced 0.7 percent to 1,210.52. " As the upper house election and the corporate earnings season approach, there is no major reason to sell Japanese stocks at the moment," said Shun Maruyama, chief Japan equity strategist at BNP Paribas. He predicts the Nikkei may top the 15,000 mark in early August. China's annual GDP growth, released on Monday, slowed to 7.5 percent in the April to June quarter, in line with expectations. On the day, Asian stocks rose on relief that growth was not lower after a surprise fall in exports in June. On Wall Street, the Dow Jones industrial average and the S& P 500 on Monday finished at record closing highs for the third consecutive session. Tokyo was closed on Monday for a public holiday. " There are some signs of overheating in the market," said Kenichi Hirano, a strategist at Tachibana Securities. " Profit-taking can set in anytime, which can limit the Nikkei's upside." The yen weakened as low as 100.07 yen to the dollar in early Asian trade on Tuesday after reaching a two-week high of 98.20 on Thursday. The pair last traded at 99.85 yen, according to EBS data. Major blue-chip exporters led the gains on a softer yen. Panasonic Corp advanced 1.9 percent, while Nikon Corp and Daikin Industries both added 1.5 percent each. Subaru maker Fuji Heavy Industries Ltd advanced 1.8 percent after the Nikkei newspaper said the company was expected to report a quarterly record operating profit of around 70 billion yen ($701 million) for the three months ended June 30, up 300 percent on the year. Bucking the overall trend, index heavyweight Fast Retailing fell 1.8 percent. The benchmark Nikkei is up 41 percent this year, boosted by the Japanese government's sweeping stimulus aimed at pulling the world's third-biggest economy from two decades of stagnation. |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
16-Jul-2013 11:13
|
|
x 0
x 0 Alert Admin |
London copper edges up on U.S. stimulus hopes
* Markets eye Bernanke testimony Weds, Thurs
* Huge Mongolia mine to produce 75,000-85,000 T copper this yr * Coming up: Germany ZEW economic sentiment at 0900 GMT (Adds comment, detail updates prices) By Melanie Burton SINGAPORE, July 16 (Reuters) - London copper firmed on Tuesday after weaker-than-expected U.S. retail sales backed the view the Federal Reserve will hold off reducing monetary support anytime soon. Markets are waiting for Fed Chairman Ben Bernanke to testify to Congress this week for further signals on when he U.S. plans to scale back its huge bond-buying programme, which has been bolstering demand for commodities. " It looks like we're still seeing a bit of an improvement in the U.S. economy so the chances are that tapering will begin before the end of the year," said economist Alexandra Knight at National Australia Bank in Melbourne. " Potentially that could restrict liquidity and have an impact on the real economy. Initially it could be perceived negatively in the metals markets and dampen prices." Three-month copper on the London Metal Exchange had edged up 0.12 percent to $6,928.75 a tonne by 0116 GMT, after falling half a percent the previous session. Copper prices hit a nearly 1-month high at $7,049.25 a tonne on July 11, but have failed to gain traction above $7,000 and remain down more than 12 percent for the year. The most-traded November copper contract on the Shanghai Futures Exchange slipped 0.30 percent to 49,800 yuan ($8,100) a tonne. U.S. retail sales rose less than expected in June, the latest sign of a slowdown in economic growth that offers a cautionary note to the Fed as it mulls scaling back its monetary stimulus. Underlining a softening outlook for metals demand, the Asian Development Bank (ADB) said on Tuesday it has lowered its growth forecasts for developing Asia this year and the next as a softer outlook for the world's No.2 economy China meant subdued economic activity elsewhere in the region. Also blurring the picture for copper demand, a crackdown in China aimed at curbing distorted credit growth has triggered growing appetite for the use of commodities as collateral to raise cash, inflating copper imports. At the same time, supply is improving. Turquoise Hill Resources Ltd said it expects Mongolia's Oyu Tolgoi to produce between 75,000 and 85,000 tonnes of copper in concentrates for the year as the huge mine ramps up. PRICES Base metals prices at 0205 GMT Metal Last Change Pct Move YTD pct chg LME Cu 6928.75 8.75 +0.13 -12.62 SHFE CU FUT NOV3 49800 -150 -0.30 -13.66 HG COPPER SEP3 3.14 -0.01 -0.22 -99.14 LME Alum 1807.00 3.00 +0.17 -12.75 SHFE AL FUT OCT3 14295 -60 -0.42 -6.84 LME Zinc 1889.00 -3.00 -0.16 -8.46 SHFE ZN FUT OCT3 14660 -885 -5.69 -5.69 LME Nickel 13500.00 -5.00 -0.04 -21.31 LME Lead 2053.50 -1.50 -0.07 -12.24 SHFE PB FUT 0.00 -13885.00 -100.00 -100.00 LME Tin 19380.00 -10.00 -0.05 -17.18 LME/Shanghai arb^ --- Shanghai and COMEX contracts show most active months ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month ($1 = 6.1378 Chinese yuan) (Reporting by Melanie Burton Editing by Joseph Radford) |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
16-Jul-2013 10:21
|
|
x 0
x 0 Alert Admin |
Wyatt Family (WWE), New Comer .. ... |
| Useful To Me Not Useful To Me | |
|
|
|
|
krisluke
Supreme |
16-Jul-2013 10:13
|
|
x 0
x 0 Alert Admin |
WATCH IT FREE, COMIN SOON... ... Click: http://veedio.info/streams/live.php Delay telecast: Click: http://www.bollyrulez.net/ |
| Useful To Me Not Useful To Me | |
|
dicksonh
Veteran |
16-Jul-2013 10:11
|
|
x 0
x 0 Alert Admin |
US stocks closed higher on Monday, edging to new all-time highs as in-line Chinese economic growth data offset disappointing US retail sales figures.NEW YORK CITY, New York: US stocks closed higher on Monday, edging to new all-time highs as in-line Chinese economic growth data offset disappointing US retail sales figures. The Dow Jones Industrial Average rose 19.96 (0.13 per cent) to 15,484.26. The broad-based S& P 500 added 2.31 (0.14 per cent) at 1,682.50. It was the third straight session in which the Dow and S& P 500 closed at new all-time highs. The tech-rich Nasdaq Composite Index picked up 7.41(0.21 per cent) at 3,607.49. David Levy, portfolio manager at Kenjol Capital Management, said Monday's modest gains came on the heels of " mixed" economic news. US retail sales rose just 0.4 per cent in June, below the 0.7 per cent expected by analysts. But China's second-quarter gross domestic product growth came in at 7.5 per cent, in line with expectations and better than what some experts feared. Levy said the market is still digesting last week's gains. Early earnings results have been okay, but " it's too early in earnings season to say a trend has been established," he said. Citigroup surged 2.0 per cent after reporting earnings of $1.25 per share compared with analyst expectations of $1.18. Revenues in securities trading and investment banking were particularly strong. The Citi report, which followed strong earnings from peers JPMorgan Chase and Wells Fargo last week, helped fuel another rally in many banking shares. Wells Fargo rose 1.7 per cent, Goldman Sachs jumped 1.8 per cent and Morgan Stanley picked up 2.1 per cent.
Boeing jumped 3.7 per cent after British safety regulators said there was no evidence Friday's fire in an empty parked 787 Dreamliner aircraft was related to the company's recent battery problems. Boeing shares sank Friday after the fire revived fears about the safety of the plane. AT& T dipped 0.7 per cent after announcing a $4 billion deal to buy wireless carrier Leap Wireless. Leap shot up 112.4 per cent. Pharmaceutical company Alexion gave up 5.6 per cent after jumping last week on reports that Swiss company Roche was seeking financing for a takeover of the company. Alexion had gained 12.6 per cent Friday on the takeover talk. First Solar picked up 5.5 per cent on news that China plans to boost its solar capacity. Bond prices rose. The yield on the 10-year US Treasury bond fell to 2.56 per cent from 2.60 per cent late Friday, while the 30-year yield dropped to 3.61 per cent from 3.65 per cent. Bond prices and yields move inversely. - AFP/fl |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
16-Jul-2013 09:58
|
|
x 0
x 0 Alert Admin |
Are You Ready To Take Buffett’s Advice? 
Let’s all imagine we are now in September 2008 and Lehman Brothers just filed for bankruptcy. The Wall Street Journal front page headline screams, “Crisis on Wall Street as Lehman totters”. A few days later, the headline reads, “Bailout Plan Rejected, Markets Plunge, Forcing New Scramble to Solve Crisis”. Meanwhile, the stock market is literally crumbling like a pack of cards. The Straits Times Index (SGX: ^STI) hit a low of 1457 points in March 2009 from a peak of 3805 points in Oct 2007, plunging 62% from its peak. Then, let’s imagine you own SIA Engineering Company Limited (SGX: S59) and DBS Group Holdings Limited (SGX: D05) during this tumultuous period. Every day you look at the stock market, you get more and more depressed. The charts of your companies are on a downward spiral. What would you have done? Warren Buffett once said that we should be greedy when others are fearful and be fearful when others are greedy. If you believe in the business and if the stocks are undervalued with a huge margin of safety, it makes sense to buy more of the stocks. Companies like SIAEC and DBS were relatively unscathed during the financial crisis as their businesses were still ongoing. Planes still had to be maintained before flying off and DBS was well-capitalised. Historically, stock markets have gone up more in percentage terms than it has gone down. Also, bull markets have lasted longer than bear markets. So, if you invest a certain amount every few months consistently as the markets were going down, you would have gotten stocks at an average low price. Once the stocks recover, you would be sitting on some huge gains. Not surprisingly, SIAEC is now up 342% from a low of $1.13 and DBS is up 250% from a low of $4.68. Both lows were seen in March 2009. So, the next time a huge bear comes and the front page of the newspapers screams, “Wall Street on the Brink of Collapse”, are you ready to be greedy when others are fearful? |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
16-Jul-2013 09:40
|
|
x 0
x 0 Alert Admin |
ADB lowers growth and inflation forecasts for much of Asia
MANILA, July 16 (Reuters) - The Asian Development Bank (ADB)
released an update to its 2013 outlook for 45 economies in developing Asia, which spans the Pacific to Central Asia. The report is available on the ADB's website www.adb.org For a related story, see GDP GROWTH, pct Actual --Forecast-- Subregion/Economy 2012 2013 2014 July April July April CENTRAL ASIA 5.6 5.3 (5.5) 6.0 (6.0) EAST ASIA 6.5 6.7 (7.1) 6.7 (7.1) China 7.8 7.7 (8.2) 7.5 (8.0) SOUTH ASIA 5.0 5.6 (5.7) 6.2 (6.2) India 5.0 5.8 (6.0) 6.5 (6.5) SOUTHEAST ASIA 5.6 5.2 (5.4) 5.6 (5.7) ASEAN-5 5.6 5.2 (5.4) 5.6 (5.7) THE PACIFIC 7.6 5.0 (5.2) 5.5 (5.5) ___________________________________________________________ DEVELOPING ASIA 6.1 6.3 (6.6) 6.4 (6.7) INFLATION, pct Actual --Forecast-- Subregion/Economy 2012 2013 2014 July April July April CENTRAL ASIA 5.3 6.7 (6.7) 6.8 (6.7) EAST ASIA 2.6 2.4 (3.1) 2.7 (3.3) China 2.6 2.5 (3.2) 2.7 (3.5) SOUTH ASIA 7.9 6.7 (7.4) 6.9 (7.1) India 7.4 6.5 (7.2) 6.6 (6.8) SOUTHEAST ASIA 3.9 4.3 (4.2) 4.2 (4.1) ASEAN-5 3.6 4.2 (4.0) 4.0 (3.8) THE PACIFIC 5.3 5.7 (6.1) 5.9 (6.3) ____________________________________________________________ AVERAGE 3.7 3.5 (4.0) 3.7 (4.2) Source: ADB's Asian Development Outlook Supplement July 2013 Central Asia: Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan East Asia: China, Hong Kong, South Korea, Mongolia, Taiwan South Asia: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka Southeast Asia: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam ASEAN-5: Indonesia, Malaysia, the Philippines, Thailand, Vietnam Pacific: Fiji, Papua New Guinea, Timor-Leste, Cook Islands, Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, Palau, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu (Reporting by Rosemarie Francisco Editing by Kim Coghill) |
| Useful To Me Not Useful To Me | |
|
|
|
|
krisluke
Supreme |
16-Jul-2013 09:27
|
|
x 0
x 0 Alert Admin |
Hong Kong shares may start higher, tracking Wall Street
Hong Kong night skyline
On Monday, the Hang Seng Index closed up 0.1 percent at 21,303.31, hovering around one-month highs. The China Enterprises Index of the top Chinese listings in Hong Kong rose 0.1 percent. Elsewhere in Asia, Japan's Nikkei was up 0.2 percent, while South Korea's KOSPI was down 0.1 percent at 0055 GMT. FACTORS TO WATCH: * Huaneng Power International's total generation slipped 0.46 percent in the first six months from a year ago due to the economic slowdown, China's largest independent power producer said on Monday. * Chinese construction gear maker Zoomlion Heavy Industry Science and Technology Co Ltd has denied accusations it spied on rival Sany Heavy Industry Co Ltd or was involved in the kidnapping of the son of Sany's chairman. * Chinese TV maker TCL Multimedia Technology Holdings Ltd has submitted an application to the Hong Kong stock exchange for the proposed spin-off and listing of wholly owned subsidiary Tonly Holdings. * Xiao Nan Guo Restaurants Holdings Ltd has agreed to invest in Shanghai Huajing Agricultural Biotechnology Co Ltd, which specialises in food preservation technology, to boost the quality of its products. * APT Satellite Holdings Ltd expects to record a significant increase in first-half revenue and operating profit due to revenue contribution from its new satellite Apstar 7.(Reporting by Clement Tan and Lee Chyen Yee Editing by Edwina Gibbs) |
| Useful To Me Not Useful To Me | |
|
Tomique
Master |
16-Jul-2013 09:26
|
|
x 0
x 0 Alert Admin |
Seems the climate blows hot and cold. China slows down means lesser corporate revenues. So it might be a period of economic consolidation? (Wonder if there is such a thing as economic consolidation, its either up or down otherwise stagnation is bad.) Fed cannot continue printing money (increasing its debts) to fund the monthly bond purchases. It means borrowing and borrowing and borrowing and borrowing, and when will it stop? Head ache to think of the market, few days could not go up with all the news. Scary... |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
16-Jul-2013 09:16
|
|
x 0
x 0 Alert Admin |
ADB cuts growth forecasts for developing Asia, sees benign prices
MANILA, July 16 (Reuters) - The Asian Development Bank (ADB) said on Tuesday it has lowered its growth forecasts for developing Asia this year and the next as a softer outlook for the world's second-biggest economy China meant subdued economic activity elsewhere in the region.
The bank lowered its growth forecast for developing Asia by 0.3 percentage points to 6.3 percent in 2013 and 6.4 percent in 2014, the Manila-based development lender said in a supplement to its Asian Development Outlook 2013 first released in April. It cut its growth estimates for China by 0.5 percentage points to 7.7 percent and 7.5 percent this year and the next, with data showing investment growth slowed in May and is expected to weaken further with financial institutions becoming more averse to risk following turbulence in its domestic interbank money market. " The drop in trade and scaling back of investment are part of a more balanced growth path for the PRC (People's Republic of China), and the knock-on effect of its slower pace is definitely a concern for the region," ADB Chief Economist Changyong Rhee said in a statement. " We are also seeing more subdued activity across much of developing Asia," he said. China reported on Monday that annual GDP growth slowed to 7.5 percent in April to June - the ninth quarter in the last 10 that expansion has weakened - putting pressure on Beijing to quicken reforms rather than slow them to take up the economic slack. The ADB also lowered for the second time this year its forecast for South Asia's largest economy India to 5.8 percent from its April estimate of 6.0 percent, with growth still constrained by supply-side bottlenecks and sluggish progress in pushing through structural reforms. Southeast Asia's growth is expected to be slightly lower than previously expected, mainly due to softer demand from China. However, the sub-region as a whole is likely to buck the regional trend of softer-than-expected price pressures largely due to 44 percent jump in subsidized oil prices in Indonesia in June. Offering some comfort for central banks, the ADB forecast inflationary pressures would be benign due to decelerating growth in the region and on continued weakness in commodity prices due to soft global demand. The ADB also said it expects Japan's recovery to pick up speed as the effects of " Abenomics" take root and improving corporate profits bolster household income and business environment. It forecast growth in Japan this year of 1.8 percent, against an April estimate of 1.2 percent. (Reporting by Rosemarie Francisco Editing by Kim Coghill) |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
16-Jul-2013 09:14
|
|
x 0
x 0 Alert Admin |
Banks help Europe shares extend bounce off 2013 lows
European flags in front of the European parliament in Strasbourg, France
* Euro STOXX 50 rises 0.4 pct to 2,686.69 points * Citigroup results buoy European bank stocks * Chinese data also boosts sentiment By Sudip Kar-Gupta LONDON, July 15 (Reuters) - European shares rose on Monday to extend a recovery after hitting low points in late June, as Chinese economic data eased fears over a slowdown in that country and boosted sentiment. Banks were among the top performers as better-than-expected earnings from U.S. bank Citigroup lifted financial stocks and enabled the STOXX Europe 600 Banking Index to rise 0.8 percent. The pan-European FTSEurofirst 300 index closed up 0.4 percent at 1,199.92 points while the euro zone's blue-chip Euro STOXX 50 index also gained 0.4 percent to 2,686.69 points. Some traders said technical indicators pointed to further near-term gains, with the Euro STOXX 50 rising on Monday above its 100-day simple moving average of 2,683 points - seen by some technical traders as a sign of more gains to come. The FTSEurofirst 300, which is up 6 percent since the start of 2013, had hit a 5-year high in late May of 1,258.09 points. It then fell to a 2013 low of 1,111.11 points in late June on expectations the U.S. Federal Reserve would scale back economic stimulus measures but has since recovered this month as central banks have sought to reassure that they will continue to support the global economy. Rupert Baker, a European equity sales executive at Mirabaud Securities, used the recent pullback to buy up stocks. " I've been buying the dips. Valuations in Europe are undemanding compared to the United States, and economies are in the process of crawling off the bottom," he said. ATTRACTIVE VALUATIONS Companies in the pan-European STOXX 600 index, which closed up 0.4 percent, are forecast to trade on an average price to earnings-per-share (P/E) ratio of 12.4 times for the next 12 months, according to the Thomson Reuters StarMine " smartestimate" which favours top-rated analysts. This represents a discount to a similar P/E ratio of 14.5 times for the U.S S& P 500 index, according to StarMine. JP Morgan Asset Management's global market strategist Dan Morris also pointed to support from the Chinese economic data, which showed 7.5 percent economic growth in the second quarter - better than some had forecast. " While (Q2 GDP) is still below the 8 percent that at one point was considered the minimum acceptable growth rate, it would indicate a stabilisation in the economy that could provide some support for the equity market," Morris wrote in a note. However, Central Markets Investment Management trading head Darren Courtney-Cook sold a position on Germany's DAX, which rose 0.3 percent to 8,234.81 points, at 8,256 points. Courtney-Cook felt European equities would drift lower in coming sessions following their strong rebound last week. " The medium-term trend is up but the shorter-term trend could be for markets to drift off a bit. They did a lot very quickly last Thursday and Friday," he said. |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
16-Jul-2013 09:12
|
|
x 0
x 0 Alert Admin |
Crude rises on expected U.S. inventory fall
SINGAPORE, July 16 (Reuters) - U.S. crude futures rose in early Asian trade on Tuesday as forecasts of a further fall in inventories in the world's biggest oil consumer renewed hopes of a revival in demand growth.
U.S. commercial crude oil stocks likely fell for a third consecutive time last week, a Reuters poll of eight analysts showed on Monday. The poll, taken before weekly inventory reports from the American Petroleum Institute (API) and the U.S. Department of Energy's Energy Information Administration (EIA), forecast that crude stocks fell 2.0 million barrels on average for the week ending July 12. U.S. crude had risen 23 cents to $106.55 a barrel by 0020 GMT, after settling 37 cents higher. The contract is less than a dollar away from this year's high of $107.45 touched on July 11. Brent gained 4 cents to $109.13. * FUNDAMENTALS - The Asian Development Bank (ADB) said on Tuesday it has lowered its growth forecasts for developing Asia this year and the next as a softer outlook for the world's second-biggest economy China meant subdued economic activity elsewhere in the region. - Oil production in North Dakota topped 800,000 barrels per day for the first time ever in May, the state regulator said on Monday, adding that output this summer will exceed earlier expectations as firms clear a backlog of wells waiting to be fracked. - Cash crude differentials in the United States strengthened on Monday, reacting to a trans-Atlantic spread that widened intraday before ending narrower, traders and brokers said. - Police fired tear gas in central Cairo on Monday when protesters calling for the reinstatement of the ousted Islamist president, Mohamed Mursi, scuffled with drivers and passers-by annoyed that they had blocked major roads. * MARKETS NEWS - Citigroup's strong earnings helped the S& P 500 end higher on Monday for an eighth straight day, the longest such streak since mid-January, though weak retail sales limited gains in a session with the lowest volume of the year. * DATA/EVENTS The following data is expected on Tuesday: - 0900 Euro zone Eurostat trade - 0900 Germany ZEW economic sentiment - 1145 U.S. ICSC weekly chain store sales - 1230 U.S. CPI - 1255 U.S. Redbook weekly retail sales - 1315 U.S. Industrial output - 1400 U.S. NAHB housing market index - 2030 U.S. API weekly crude stocks (Reporting by Manash Goswami Editing by Joseph Radford) |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
16-Jul-2013 09:11
|
|
x 0
x 0 Alert Admin |
Asian shares gain RBA minutes awaited
Global Markets
* Australian dollar up as investors await RBA minutes * U.S. dollar index steady, off last week's lows By Lisa Twaronite TOKYO, July 16 (Reuters) - Asian shares edged higher on Tuesday, taking their cue from U.S. shares after weaker-than-forecast retail sales growth backed the view that the U.S. Federal Reserve will hold off reducing its bond-buying stimulus anytime soon. MSCI's broadest index of Asia-Pacific shares outside Japan added about 0.1 percent to 440.75. Citigroup's strong earnings helped the S& P 500 end higher on Monday for an eighth straight day, the longest such streak since mid-January. The Nikkei share average rose 0.8 percent, catching up after Japanese financial markets were closed for a public holiday on Monday. " As U.S. stocks edged up to new all-time highs, the yen got softer again, and as there are no major domestic events scheduled this week, it's only reasonable to predict that the Nikkei will test a new (7-1/2-week) high," said Kenichi Hirano, a strategist at Tachibana Securities. U.S. retail sales increased 0.4 percent last month, half of the rise economists polled by Reuters had forecast, according to U.S. government released on Monday. The slowdown prompted economists to downgrade their second-quarter growth forecasts to an anaemic 1 percent increase. While the Fed is focusing on labour market improvements to determine when to begin tapering its $85 billion in monthly purchases, weakness in the consumer sector could indicate broader economic problems. Investors await Fed Chairman Bernanke's twice-yearly monetary policy report to the Congress on Wednesday and Thursday for more clues on the central bank's policy outlook. A separate report on Monday showed that growth in New York state's manufacturing sector accelerated in July. Yields on U.S. benchmark 10-year Treasury notes were last at 2.542 percent, steady from their U.S. close of 2.543 percent and well below a two-year high of 2.76 percent touched on July 8. The dollar index gained about 0.1 percent to 83.109 in early trade, moving away from last week's two-week low of 82.418 toward a three-year high of 84.753 set last Tuesday. The dollar was little changed versus the yen at 99.91 yen , well below last week's high of 101.21 yen on Wednesday. The euro was edged down to $1.3059, moving away from last week's three-week high of $1.3201, as concerns rose about Spain's political and financial woes. Spanish Prime Minister Mariano Rajoy said on Monday he ruled out stepping down after opposition leaders called for him to leave office over a ruling party financing scandal. The political turmoil came against a backdrop of a deepening credit crunch that threatens banks and the broader economy, the International Monetary Fund warned in a report on Monday. The Australian dollar added about 0.2 percent to $0.9107 , taking back lost ground after it fell below 90 U.S. cents on Friday. Investors awaited minutes from the Reserve Bank of Australia's July meeting, at which the central bank kept its cash rate at a record-matching low of 2.75 percent as expected and reiterated that there could be room for further cuts as the local currency was still high. " We expect the RBA board minutes from the 2 July meeting, released later today, to reiterate the RBA's easing bias and preference for the AUD to fall further, strategists at Barclays said in a note to clients. The Barclays strategists added that they continue to prefer taking short positions in the Australian dollar against its U.S. counterpart, in light of Australia's dependence on raw material shipments to China. China is Australia's single biggest export market. Data on Monday showed that China's second-quarter economic growth cooled to 7.5 percent from the year-earlier period from 7.7 percent in the previous quarter, in line with expectations. Commodity markets continued to take the Chinese data in stride, relieved it did not disappoint. Copper added 0.1 percent to $6,924.75 a tonne, while U.S. crude rose 0.2 percent to $106.56 a barrel. |
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
15-Jul-2013 11:23
|
|
x 0
x 0 Alert Admin |
|
| Useful To Me Not Useful To Me | |
|
krisluke
Supreme |
15-Jul-2013 10:37
|
|
x 0
x 0 Alert Admin |
China's GDP growth slows to 7.5 pct, tests reform push
* Q2 GDP up s/adj 1.7 pct from previous quarter
* June industrial output up 8.9 pct from year ago * Retail sales rise 13.3 pct, more than expected By Langi Chiang and Jonathan Standing BEIJING, July 15 (Reuters) - China's GDP growth slowed in the second quarter to 7.5 percent year-on-year as weak overseas demand weighed on output and investment, lining up a test of Beijing's resolve to revamp the world's second-biggest economy in the face of deteriorating data. Other figures showed industrial output in June rising slightly less than forecast compared with a year earlier, but retail sales increasing more than had been expected. The latest year-on-year economic growth reading compared with the median forecast in a Reuters poll of 7.5 percent and showed the pace of economic activity easing from 7.7 percent annual growth in January-March. " These figures are not surprising, adding to signs of downward pressure on China's economy," said Zhou Hao, an economist at ANZ Bank in Shanghai. The Australian dollar, which is highly sensitive to Chinese demand for Australian raw materials, rose on relief the GDP numbers were not weaker, following last week's report of a surprise fall in exports in June from a year earlier. China's statistics bureau said the economy's performance in the first half of the year was stable overall and that indicators were within a reasonable range. New Premier Li Keqiang has been prominent in pushing for economic reform over fast-line growth, suggesting the government is in no rush to offer fresh stimulus to revive an economy in a protracted slowdown. With the latest GDP data, China's growth has slowed down in nine of the last 10 quarters. The government's official growth target for 2013 is 7.5 percent, impressive by world standards but it would be the slowest pace in 23 years for China. The latest data showed the economy grew 7.6 percent in the first half of the year from a year earlier, just ahead of the full-year target. Analysts have cut their forecasts for 2013 full-year growth in recent weeks following a run of weak data and government comments on slowing growth. Ahead of Monday's economic figures, they were mostly forecasting 2013 growth between 7 and 7.5 percent. Last week, customs data showed China's exports fell 3.1 percent in June against forecasts for a rise of 4 percent, while imports dipped 0.7 percent versus an expected 8.0 percent rise. The customs administration added that the outlook for July to September was " grim." Other figures had shown factory-gate deflation persisted for a 16th straight month, backing the view that the economy, plagued by industrial overcapacity, is losing momentum. Annual consumer inflation accelerated more than expected in June, but remained subdued at 2.7 percent, below Beijing's annual target of 3.5 percent. The main worry for China's leaders is if the economic slowdown leads to high unemployment that could spark social unrest. So far government officials say employment is stable. So for now, economists do not see any major stimulus or policy shift and instead expect the government to tough out the slowdown as they pursue a longer-term vision of reforming the economy towards consumer-led, rather than export- and investment-led growth. Beijing is still cleaning up trillions of dollars in local government debt left over from its last spending spree during the 2008/2009 global financial crisis, while trying to rein in off-balance-sheet loans. " The focus is still on reforms. The chances of a cut in interest rates or banks' reserve ratio look slim," Xu Hongcai, senior economist at the China Centre for International Economic Exchanges (CCIEE), a think-tank in Beijing, said before the release of the GDP data. " Previously, when the economy was not good, local officials held out their hands for money from the central government. But now they have to embrace reforms as no money will be given." |
| Useful To Me Not Useful To Me | |
