financializer news A weblog highlighting financial topics making news in the international media.

brexit: Valdis Dombrovskis was speaking in an interview with AFP a day after EU President Donald Tusk said the only alternative to a hard Brexit – which would see Britain pull out of the bloc single market and impose tough immigration controls – is "no Brexit". Dombrovskis' comments also contrasted with his boss, European Commission chief Jean-Claude Juncker, who said last week that the EU must be "unyielding" in the face of Britain demands on the terms for its divorce from the bloc."Well, from the European Commission point of view we are now emphasising that the ball now is in UK court," said Dombrovskis, who oversees the euro and financial services at the EU executive arm."It for UK government to decide on what model of cooperation with the EU they would envisage," he said, speaking in English."But staying within the internal market comes with a number of conditions, according to Nine News Australia. If UK is ready to respect those conditions, certainly there a possibility to discuss the so-called soft Brexit." President Tusk was probably referring to is more or less the statement which comes from UK government itself, which seems to be indicating rather towards a so-called hard Brexit."Tusk is the head of the European Council, which groups the 28 EU leaders. The European Commission top euro official said Friday there is still a chance for Britain to engineer an amicable "soft Brexit" departure from the EU, but stressed it is up to London to decide. He said in a speech Thursday: "I think it is useless to speculate about 'soft Brexit'. "In my opinion, the only real alternative to a 'hard Brexit' is 'no Brexit'. Even if today hardly anyone believes in such a possibility," he said. British Prime Minister Theresa May announced this month her government would trigger those negotiations by the end of March, putting the country on course to leave the EU by early 2019. The pound has taken a battering as British leaders bicker over how to leave the European Union, with many fearing a hard Brexit would mean Britain withdrawing entirely from Europe single market, and having to negotiate new trade arrangements, in order to impose strict immigration controls. (news.financializer.com). As reported in the news.

coffee: On any given day, there might be an elderly woman playing Scrabble with a man in his 20s, according to The Toronto Star. There might be a homeless man making coffee for a mother whose daughter recently died. By Colby Itkowitz The Washington Post Fri., Oct. 14, 2016 Inside a library in a depressed seaside town in Northern England is a room converted into a cafe designed to look like a grandmother homey living room. Seated on the vintage-looking couches and armchairs there will be strangers sharing stories, offering counsel and friendship. It the brainchild of Maff Potts, who made his career working with charities for the homeless in England. This community open space seeks to address the central issues that commonly lead to homelessness, addiction and poor health: Isolation and a lack of purpose. (news.financializer.com). As reported in the news.

gold sector: The S&P/TSX composite index dropped 58.72 points to 14,584.99, as gold stocks shed nearly 3 per cent, according to The Toronto Star. The December gold contract fell $2.10 to $1,255.50 an ounce. By The Canadian Press Fri., Oct. 14, 2016 Toronto main stock index fell today, dragged down by weakness in the gold sector. In New York, the Dow Jones industrial average was up 39.44 points at 18,138.38, the S&P 500 gained 0.43 points at 2,132.98, and the Nasdaq composite rose 0.83 points at 5,214.16. Article Continued Below Elsewhere in commodities, the November crude contract was down 9 cents at $50.35 per barrel, November natural gas fell 5.6 cents to $3.285 per mmBTU, and December copper contracts slipped 1.15 cents to $2.11 a pound. The Canadian dollar was at 76.07 cents U.S., up 0.34 of a U.S. cent. (news.financializer.com). As reported in the news.

vc: In China, 84 VC investment deals were recorded in Q3 totalling 3.9 billion U.S. dollars, compared to 79 deals worth a total of 5.7 billion U.S. dollars three months earlier, according to Xinhua China. Chinese VC investors are focusing on overseas markets, encouraged by government incentives. Global VC investment in Q3 declined 14 percent from the previous quarter, to 24.1 billion U.S. dollars, the lowest quarterly funding total since 2014 Q3, according to a quarterly global report on VC trends published jointly by KPMG International and CB Insights. In particular, Chinese companies have recently acquired or invested in technology companies in Israel, Canada and the United Kingdom, according to Irene Chu, partner and head of the High Growth Technology and Innovation Group with KPMG China. "Israel based companies have been especially keen to work with tech VC funds in China in order to promote their technologies to the Chinese market for their mutual benefit," Chu said. The healthcare sector is poised to be a big winner, both in terms of providing accessible health care and in terms of making processes such as booking appointments and writing prescriptions easier for doctors and patients, according to the report. Over the next few quarters, Asia based VC investment might remain focused on using technology to help individuals, improve services or product quality, the report estimated. (news.financializer.com). As reported in the news.

internet users: World Bank data from 2015 showed that over 57 percent of Turkish are Internet users, making it the world 18th in number terms and its Internet penetration rate is the seventh highest, according to Xinhua China. Turkey Internet penetration rate grew over 10 percent for both 2014 and 2015, showing great development potential of its Internet industry. It is estimated that there are 15.42 million e-commerce users in Turkey, accounting for one third of its total online community or about a fifth of its population, according to Hou. By 2020, online retail sales will at least double from 2015 to hit 36 billion U.S. dollars, according to a report released by Turkish Weekly. It concerned the Online Silk Road, part of China Belt and Road Initiative, which aims to connect China and other countries along the ancient land and maritime Silk Roads. China and Turkey signed the first memorandum of understanding on e-commerce bilateral trade in November 2015 at the G20 summit in Turkish city Antalya. (news.financializer.com). As reported in the news.

gold bug: Recent losses for gold may have dented investor confidence, according to Market Watch. Gold GCZ6, -0.47% is up 18% this year, but the first full week of October marked its worst seven-day performance in over three years; it also posted a three-month loss of nearly 6% on a continuous basis. The precious metal should be a lot more expensive when the likelihood of a global financial collapse and a move toward negative interest rates is accounted for, says Global Macro Investor founder Raoul Pal, who now sees a U.S. recession within 12 months. Uncertainty about Brexit and the timing of a Federal Reserve rate hike triggered a rush into the dollar, which often moves inversely to the metal. I'm not a gold bug, the former GLG Global Macro Fund co-manager — who is also watching the dollar closely — but this is the currency I would choose now. As we get to negative interest rates, gold is a good place to park your cash, said Pal, who discussed his outlook with Market Watch in a September interview and a follow-up conversation over email. (news.financializer.com). As reported in the news.

hasn t: And the trend has been predominantly lower, according to Market Watch. Although it hasn't been the sort of dizzying tumble for equities that would elicit an instant spike in fear, it has been, however, the kind of plodding descent that has the Dow Jones Industrial Average DJIA, +0.22% down nearly 300 points since the end of July. U.S. equities have been bouncing around lately. In fact, the Dow and the S&P 500 index SPX, +0.02% are on the verge of tallying three straight months of declines, with October shaping up to be the ugliest monthly fall since January—the month after the Federal Reserve raised rates for the first time in a decade. The S&P 500 notched three consecutive monthly loses earlier this year, ended February. But, if the Dow posts a loss in October it would be the first time the blue-chip index logged three consecutive monthly declines since the period ended in September 2011. (news.financializer.com). As reported in the news.

points: On Thursday, the key market gauge lost 65.76 points, according to The Japan Times. The Topix index of all first-section issues ended up 4.88 points, or 0.36 percent, at 1,347.19, after losing 0.04 point the previous day. The 225-issue Nikkei average gained 82.13 points, or 0.49 percent, to close at 16,856.37. After opening slightly lower, the closely watched market indexes showed movements without clear direction around the previous day closing levels in the morning session amid a lack of fresh incentives. The stock market, however, gained upward momentum in the afternoon as the yen fell further against the dollar. Dampened investor sentiment due to a steep fall in Chinese exports in September, released the previous day, capped the market topside, but the yen weakness limited its losses, brokers said. (news.financializer.com). As reported in the news.

india china: It thrived on a grand vision, according to Deutsche Welle. The BRIC countries felt a special kinship for one another and wanted to change the world. In 2010, South Africa joined Brazil, Russia, India and China that formed the original BRIC group. They challenged the dominance of industrialized nations at the World Bank, the IMF and the UN Security Council. Nothing more than growth Goldman Sachs was overjoyed by the rush of investors, choosing to ignore the rising anti-US sentiment emanating from the BRIC family. They committed themselves to a renewed solidarity among countries of the global south. (news.financializer.com). As reported in the news.

states: News of the deal came after a marathon 14 hours of negotiations in Berlin, although full details were not released, according to Deutsche Welle. Further negotiations were to be discussed later on Friday morning. Chancellor Angela Merkel met with several state premiers to strike a deal on federal and state finances from 2020 onwards. An agreement was necessary given the expiry of a solidarity pact - to inject cash into the former communist part of the country - in 2019. To maintain approximately equal living standards across Germany, several billion euros of tax revenues are distributed each year both among states, and between the government and states. The main point of contention in talks has been about whether richer states or the central government should bear the brunt of subsidizing the former East German states. (news.financializer.com). As reported in the news.

thai: Key points:Thai Government declares one year of official mourning Thai TV broadcasting footage of King in black and white Government increases security following King death King Bhumibol, who was the world longest-reigning monarch, died on Thursday aged 88, according to Australian Broadcasting Corporation. In it official travel advice for Thailand, the Department of Foreign Affairs and Trade said Australians should be on their best behaviour while the country is in mourning. "To demonstrate respect for the Thai people, refrain from any behaviour that may be interpreted as festive, disrespectful or disorderly. Related Story: Thai King dead at 88 after influential 70-year reign Related Story: Thai King death leaves country facing uncertain future Related Story: 'Long Live The King': Thailand mourns the loss of Bhumibol Adulyadej Map: Thailand Australians travelling to Thailand are being advised to "demonstrate respect for the Thai people" in the wake of the death of King Bhumibol Adulyadej, which has sparked an outpouring of grief around the country. Abide by local laws and respect Thai customs," the advice said. In the media, Thais have also been expressing their grief in black and white. The Thai Government has declared one year of official mourning and asked Thais to wear black and avoid "festivities" for 30 days. (news.financializer.com). As reported in the news.

king life: Ever since the palace announced the news on Thursday, television stations across Thailand have been broadcasting pool footage of the king life in monochrome, according to The Toronto Star. News websites, newspapers and even Google Thailand have joined in, veiling their front pages in muted colours. By Vijay Joshi Associated Press Todd Pitman The Associated Press Fri., Oct. 14, 2016 BANGKOK—In the wake of King Bhumibol Adulyadej death, Thais are expressing their grief in black and white. Thais on Facebook have also signalled their grief by changing their profile photos to black, the dominant colour of clothing worn by many people in the capital on Friday. The social network announced the decision on its blog for advertisers, saying that it is removing ads in observance of a cultural custom. In an unusual step for the company, Facebook will stop showing ads on its network in the entire country of Thailand in a gesture of respect for the late King Bhumibol Adulyadej. (news.financializer.com). As reported in the news.

points prosecution: Key points:Prosecution argued fear of Tostee forced Warriena Wright to climb over a 14th floor balcony Supreme Court hears there was 'terror bordering on hysteria' in Ms Wright voice as she was forced outside Defence argued Ms Wright decision to climb over the balcony was not reasonably foreseeable or a rational response Prosecutor Glen Cash QC told the Supreme court in Brisbane there was "terror bordering on hysteria" in Ms Wright voice as Tostee forced her onto his balcony, according to Australian Broadcasting Corporation. He said she continued to plead to be allowed to go home after being locked out of the unit on the night she died. Related Story: Warriena Wright had 80 injuries after balcony fall, court told Related Story: Tostee ordered pizza after Tinder date death, CCTV captures meet Map: Surfers Paradise 4217 Gable Tostee as good as pushed Warriena Wright from the balcony of his Gold Coast apartment if he instilled such fear and terror that she felt climbing down 14 floors was her only escape, a court has heard. Tostee, 30, pleaded not guilty to murdering the New Zealand tourist, who fell to her death from his Avalon apartment in August 2014. In his closing address, Mr Cash said Ms Wright had "probably" unlawfully assaulted Tostee, but he said the force the accused used in response was unreasonable. It is alleged the pair had been on a date after meeting on the Tinder app, but became involved in a violent, drunken altercation in Tostee unit in which Ms Wright threw rocks at the accused and tried to hit him with a telescope. (news.financializer.com). As reported in the news.

product: Previously, the Vietnamese government had forecast the country gross domestic product to reach 6.7 percent in 2016, according to Xinhua China. However, the yearly estimated growth was lowered to between 6.3-6.5 percent in early October. In discussions about how much the Vietnamese economy will expand this year and the fact that it remains a hot topic in the country, the official said that it is more important to define underlying factors that allow or encourage the growth trend as well as what factors prohibit the trend from being sustained. According to the ADB official, the lowered goal is still "unlikely" to be realized. "So far this year, the drought in Vietnam Central Highlands and Mekong Delta region has reduced agricultural output. So having the annual growth rate at 6.3-6.5 percent means the growth in the last quarter must be very high, at over 7 percent," the economist explained. "So far, we don't have leading indicator yet," added Sidgwick. At the same time, the mining sector output has reduced largely by a decrease in the production of coal." "These two factors have been active in reducing Vietnam economic growth rate," said Sidgwick, adding that "Now we expect the growth rate for Vietnam this year will be around 6 percent." The World Bank, for its part, meanwhile, has just maintained its forecast for Vietnamese economic growth at six percent for 2016. "Until the end of September, the growth was under 6 percent. (news.financializer.com). As reported in the news.

terylene: He was a fraught little thing, says Winton of that boy – the boy he used to be, according to The Guardian. I feel related to him but I'm no longer completely him, thank god. A 13-year-old boy stands at the window of a suburban street, behind a terylene curtain, training a rifle on passersby. The passage opens a surprisingly intimate essay about the role of guns in Australian life, setting the tone for a collection being billed as Winton most personal yet. His first novel, An Open Swimmer, catapulted him into the public eye when it won the Vogel literary award in 1981, but it was his 1991 novel, Cloudstreet, that cemented his place in Australian letters. In spite of his inclination for solitude, Winton has spent much of his life in the spotlight. (news.financializer.com). As reported in the news.

billionaire: The study authors found that Asia is creating a new billionaire every three days, but the US billionaire population only grew by five in 2015, according to The Guardian. Europe wealthiest individuals were proving the most resilient, the report said. A report published on Thursday by UBS and Pricewaterhouse Coopers has found that falling commodity prices helped put billionaires under pressure at a time of stalling growth in technology and finance, the motors of wealth creation. In 2015, the global billionaire population effectively increased by 50 to 1,397, according to the study, but the total wealth of these individuals fell by $300bn from $5.4tn to $5.1tn, an average loss of £215m per person. At the same time, 160 people lost their billionaire status, including those who died. The study said 210 people became members of the billionaires' club in 2015, more than half of whom were in Asia, where young entrepreneurs are rapidly becoming wealthy in sectors such as real estate, technology and retail. (news.financializer.com). As reported in the news.

bond traders: Key points:Investors concerned about housing, but only 4pc expect crash Record number of housing completions points to building cycle peak Consumers growing uneasy about property In a survey of leading fixed interest and bond traders, Fitch found a domestic housing downturn had replaced the prospect of a hard economic landing in China as their biggest worry. "Almost all investors surveyed – 97 per cent – believe a domestic housing market downturn poses a high or moderate risk to credit markets in the next 12 months," Fitch said. "Investors also identified property market exposure as the greatest risk to bank credit quality over the next 12 months, and financials as the asset class facing the greatest refinancing challenge." The report showed 43 per cent of investors saw the banks' property exposure as a "critical" risk, ranking ahead of concerns about access to funding and the broader economic landscape, according to Australian Broadcasting Corporation. Fitch said, while concerns about risk were mounting, only 4 per cent of those surveyed believe house prices will fall by more than 10 per cent by 2019. "Confidence was underpinned by their stable views for unemployment and interest rates," the ratings agency added. "At the same time, a string of regulatory initiatives, coupled with active supervision have added starch to bank underwriting standards." However, investors were more relaxed about the prospects of a hard landing in China, with just under a third of those surveyed rating it a high risk, compared to almost half in the previous survey in the June quarter. Related Story: Apartment prices fell 20pc back in 2004, could history repeat Related Story: Economic risks rising but the chance of a crash remains low: Citi, Moody'sMap: Australia A slump in the housing market is now the biggest threat to Australia economy and creditworthiness according to global credit rating agency Fitch. The survey covers the views of managers who look after more than $300 billion in fixed-income assets, accounting for over three-quarters of the Australian domestic real money market. Bank inquiry misses the point Parliament banking inquiry didn't really examine the key problem that Australia giant banks are sucking the life out of the economy. Housing completions point to top of cycle: Morgan Stanley There is also growing evidence that the housing cycle has already peaked, according to big global investment bank Morgan Stanley after the release of the latest Australian Bureau of Statistics data, which showed an extraordinary spike in housing completions. (news.financializer.com). As reported in the news.

citigroup inc: American stocks almost wiped gains as a drop in oil sent energy shares lower, according to Bloomberg. Banks rallied after earnings from JPMorgan Chase & Co. and Citigroup Inc. beat estimates. The greenback climbed against most of its major peers and Treasury yields rose to the highest level in four months after Yellen refrained to provide any clues on the timing of a hike and said the costs of low rates for too long may exceed benefits. Traders have been sifting through economic reports and remarks from policy makers for clues on the path of borrowing costs in the world largest economy. Boston Fed Bank President Eric Rosengren said the central bank may have to raise rates faster than the market forecasts. U.S. retail sales climbed in September by the most in three months while wholesale prices rose more than projected, data today showed. (news.financializer.com). As reported in the news.

afternoon action: The pound in particular saw big swings on the day, according to Market Watch. After trading flat against the dollar for much of the morning session, it saw a pronounced move higher, though the Brexit-battered currency continued to trade near multidecade lows. Trading was volatile, with many currencies extending their gains against the dollar in afternoon action. The ICE U.S. Dollar Index DXY, +0.55% which measures the greenback against a half-dozen rivals, dipped 0.4% to 97.56. The WSJ Dollar Index BUXX, +0.39% —a measure of the dollar against a basket of major currencies—was down 0.3% at 88.13. On Wednesday, it ended at its highest level since March. (news.financializer.com). As reported in the news.

bond purchases: That is because by then, even though the central bank will be buying fewer Japanese government bonds, it will have cornered around 43 percent of the market and the dearth of available JGBs will see any rise in 10-year yields draw investors, according to Mitsubishi UFJ Morgan Stanley Securities Co, according to The Japan Times. Jun Ishii. The good news, he says, is yields will not jump. It also ultimately means the BOJ will be able to fulfill its pledge to keep the 10-year yield pinned around zero, he says. But even then, the magnitude of their existing bond holdings will continue to put downward pressure on yields, so they should be able to taper without a lot of volatility. They're approaching the limit for bond purchases, and eventually they'll have no choice but to take the leap into tapering, Ishii said in an interview in Tokyo on Tuesday. (news.financializer.com). As reported in the news.

dollars: The crash lasted for about four minutes, with sterling recovering to 1.23 US dollars later in the day, according to Global Times China. Deputy governor Sir Jon Cunliffe told lawmakers at the Houses of Parliament that "we saw last week news about how Brexit might play out. Last Friday, sterling fell to 1.15 US dollars to the pound from 1.26 US dollars during Asian trading, the largest move in the currency since June 24, the day after the Brexit vote. We've seen the effect on the currency markets...where sterling in Asian markets lost 6 percent of its value in a matter of minutes. Some of it is not just to do with news about Brexit coming into the sterling price, but also to do with the way markets are currently configured." Cunliffe, who holds special responsibility within the BOE for financial stability, added that the market recovered quickly and that he could imagine that "as more news comes in that there is potentially stress in markets. We have seen that sort of crash before in US Treasuries, in German Bunds. (news.financializer.com). As reported in the news.

supermarket chain: Refusing to accept Unilever demands, Tesco pulled a host of Unilever products from its online store, including PG Tips tea bags and Ben & Jerry ice cream, according to Deutsche Welle. But it was the sudden absence of Marmite which prompted national furore. The decline of the pound comes off the back of fears Britain decision to leave the EU could see the country leave the single market in a trade-off to gain control over immigration. Within hours, #Marmitegate was trending on social media, reflecting one of the most vivid signs to date of how leaving the EU could hurt consumers. $ , ) Tumblr linkedin stumble Digg reddit del.icio.us Newsvine Permalink not so sterling for import prices ksb, jh/rc (news.financializer.com). As reported in the news.

infrastructure spending: The reason for the optimism isn't hard to discern, according to Market Watch. Democratic nominee Hillary Clinton and Republican nominee Donald Trump have pledged to boost infrastructure spending. However, investors might be getting ahead of themselves. Both have outlined budget plans that would mark a fiscal boost. Prominent institutions and economists are making the case for increased fiscal stimulus on a global scale. The Committee for a Responsible Federal Budget estimated that Clinton plan would add $200 billion to the public debt over the next 10 years, while Trump plan for aggressive spending and big tax cuts would boost the debt by $5.3 trillion. (news.financializer.com). As reported in the news.

developer talon: It is the latest chapter in the tangled web of legal fallout from the tower at Bay and Adelaide streets that was sold by developer Talon International Investments, according to The Toronto Star. Part of the development was sold as residential condominiums. By Tess Kalinowski Real Estate Reporter Thu., Oct. 13, 2016 An Ontario court of appeal has ruled that small investors who say they racked up hundreds of thousands of dollars in bills by investing in Toronto troubled Trump Tower should be released from their obligations and compensated for the losses they incurred since buying into the development. The appeal ruling applies to investors in other units, which were marketed as full-service luxury hotel rooms. It will allow some of the small investors an escape from losses that, in at least one case, amounted to nearly $1 million. Thursday ruling applies to arguments heard in June by a panel of three judges. (news.financializer.com). As reported in the news.

gold sector: On the Toronto Stock Exchange, the S&P/TSX composite index gained 24.74 points at 14,643.71, with the gold sector leading advancers as the December gold contract rose $3.80 to $1,257.60 an ounce, according to The Toronto Star. Bullion is usually seen as a safe haven to investors amid economic uncertainty. By Linda Nguyen The Canadian Press Thu., Oct. 13, 2016 North American stock markets were looking for direction Thursday as worries about growth in China weighed on investors' minds. Metals finished as the biggest decliner on the market, while December copper contracts fell five cents to $2.12 a pound. Article Continued Below The decline was a much bigger drop than in August, and greater than what analysts had been expecting. China, the world second-largest economy, reported that exports fell 10 per cent in September versus a year ago. (news.financializer.com). As reported in the news.

indicator: These include data on retail, housing and lending finance figures - which are released monthly - and a number of international trade releases, according to Nine News Australia. Shadow assistant treasurer Andrew Leigh says these are critical figures, with retail data often a leading indicator of whether there an economic downturn coming along. The Australian Bureau of Statistics says its present work program may not be affordable beyond 2016/17 and is consulting with its partners and stakeholders on some statistical series. Housing finance statistics also give a guide as to the debt load Australians are facing." also give us an indicator as to how the housing markets themselves are tracking," Dr Leigh told reporters in Canberra on Thursday."To rip away those statistics is another admission the Turnbull government has no plan on housing affordability."The ABS will continue to deliver "quality economic statistics" on the national accounts and the consumer price index, which are released quarterly, and the monthly labour force report. Click here for more information. Australian Statistician David Kalisch said it was standard practice to review the agency program each year."No decisions on the ABS' work program for 2017-18 and beyond have yet been taken," he said in a statement on Thursday."Future consultation will consider our broad legislative obligations and options regarding the value, usefulness and frequency of some indicators."He said the ABS must operate within its budget like all government agencies.© AAP 2016Politics Send your photos, videos and stories to can remain anonymous. (news.financializer.com). As reported in the news.