Survival in the Far East June 22, 2010 JAPAN has defied the most ardent optimists for the past 20 years. From a peak of 38,000 at the height of the country’s asset price boom in 1990, the Nikkei 225 index has plotted an almost unbroken downwards course. Gross domestic product (GDP) has trodden water at the nominal level of ¥500tr (£3.7tr) for a [...]
FUND MANAGEMENT NEWS June 22, 2010 GELDOF: FUNDS MISSING OUT ON AFRICA Sir Bob Geldof has warned UK pension funds that they are missing out on a great investment opportunity by not investing in Africa. Speaking at an event held by CDC, a government-backed institution that makes private equity investments in sub-Saharan Africa, he said: “Where is your money safest? Africa [...]
A BLITZ OF CUTS WOULD BE THE BEST June 22, 2010 DICK TURPIN MANAGING DIRECTOR, ARTEMIS RATHER than a real war on debt, what has been going on until now has been more of a Sitzkrieg than a painful – but very necessary – Blitzkrieg. This is just as it was from September 1939 to April 1940 when the Second World War was a sitting war: [...]
After sterling’s rally, investors are playing a waiting game June 22, 2010 FOREX markets gave a cautious welcome to George Osborne’s emergency Budget measures yesterday, with sterling rallying to highs of $1.4851 and €1.2081. However, the pound still failed to make up Monday’s losses against the dollar, reflecting a widespread wait-and-see approach as analysts work through the details of the Budget and watch for its impact on [...]
AFTER A CAUTIOUSLY POSITIVE RECEPTION FOR THE BUDGET, WHERE NOW FOR STERLING? June 22, 2010 MICHAEL HEWSON | CMC MARKETS If the Chancellor was looking to see if his credibility budget was a success, then judging by the market reaction so far it could well be he has succeeded. Euro-sterling has gained ground, pushing below the 83.2-3p support area and while the bigger 84p resistance level holds, further sterling gains [...]
THE TIPSTER June 22, 2010 IT WAS easy yesterday to focus only on what was happening to sterling but there was activity in plenty of other currency pairs too. The Australian dollar-New Zealand dollar has retraced ever since the Aussie dollar failed to maintain momentum above NZ$1.3000. The latest retracement to the NZ$1.2400 level equals the 38.2 per cent Fibonacci [...]
BUDGET HAS CALMED THE BOND MARKET June 22, 2010 GEORGE TCHETVERTAKOV HEAD OF MARKET RESEARCH, ALPARI YESTERDAY, chancellor George Osborne produced the most fiscally austere and severe budget in post-war UK history. Britain is embarking on its sharpest budget deficit reduction crusade since the 1940s with the aim of cutting the structural deficit by 8 per cent of GDP over the next five years. [...]
SLOW SHIFT IN YUAN WILL HELP RISK FX June 22, 2010 BORIS SCHLOSSBERG DIRECTOR OF CURRENCY RESEARCH, GFT LAST weekend Chinese monetary authorities announced that they were ending the yuan peg to the dollar that was adopted during the credit crisis to protect the country’s exporters. The People’s Bank of China (PBoC) noted: “In a continuation of the foreign exchange reforms launched in 2005, the yuan [...]
Chinese Yuan news boosts the FTSE 100 but BP and defence stocks decline June 21, 2010 BRITAIN’S top shares rose yesterday, boosted by China’s move to allow a flexible yuan which lifted investors’ risk appetite and bolstered the demand outlook for commodities, underpinning gains in miners and banks. The FTSE 100 ended 48.27 points higher, or 0.9 per cent, at 5,299.11, after it closed 0.1 per cent lower on Friday to [...]
Tech shares lead bearish sentiment on Wall Street June 21, 2010 STOCKS once again succumbed to late-day selling in light trading yesterday as hopes China’s newfound dedication to yuan flexibility turned to doubts about the speed and magnitude of Beijing’s intentions. The market’s overall bearish tone eroded the initial optimism around the benefits of the yuan move. Stocks pulled back as investors questioned the effectiveness of [...]
