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

bolivar note: As the country most widely used banknote went out of circulation, the higher-denomination bills that were supposed to replace the 100-bolivar note had not yet arrived at banks or ATMs, according to The Toronto Star. In the capital, people were relying on credit cards and bank transfers, or avoiding making purchases altogether. Fernando Llano / The Associated Press By Hannah Dreier Associated Press Fri., Dec. 16, 2016 CARACAS, VENEZUELA Venezuela became a country without cash Friday. President Nicolas Maduro made a surprise announcement Sunday that the 100-bolivar note would go out of circulation by the week end amid the world highest inflation. Maduro said says the closure was needed to thwart mafias who hoard bolivars. He also temporarily closed the border with Colombia and Brazil, and then on Thursday night extended the border closure for another 72 hours. (news.financializer.com). As reported in the news.

buses: The Aleppo evacuation was suspended after a report of shooting at a crossing point into the enclave, according to The Toronto Star. The Syrian government pulled out its buses that since Thursday had been ferrying out people from the ancient city that has suffered under intense bombardment, fierce battles and a prolonged siege. Hezbollah, allied with the Syrian government, reported on its media that the rebels had refused to evacuate two Reuters By Bassem Mroue The Associated Press Fri., Dec. 16, 2016 BEIRUT Diplomats sought to salvage the evacuation of eastern Aleppo after it stalled Friday amid recriminations by both sides in Syria civil war, raising fears the ceasefire could collapse with thousands still desperate to escape the rebel enclave. The carnage in Syria remains a gaping hole in the global conscience, said UN Secretary-General Ban Ki-moon. The halt also appeared to be linked to a separate deal to remove thousands of people from the government-held Shiite villages of Foua and Kfarya that are under siege by the rebels. Aleppo is now a synonym for hell. (news.financializer.com). As reported in the news.

dollar index: Subsequently, borrowing costs as measured by corporate credit spreads rose as the yield premium demanded by investors to hold corporate debt over U.S. Treasurys widened, according to Market Watch. Global equities sold off sharply in January of 2016, with many experts predicting an impending recession at the time. From mid-2014 to the end of 2015, a 25% rise in the dollar index in anticipation of tighter monetary policy translated into a 2% tightening in financial conditions a range of financial variables that influence economic behavior, according to analysts at Goldman Sachs. In fact, Goldman analysts as late as in November were concerned that tighter conditions wouldnt allow the Fed to raise rates in December of this year. Liz Ann Sonders, chief investment strategist at Charles Schwab & Co, so far doesnt think that financial conditions will deteriorate the way they did a year ago. This year, the ICE U.S. dollar index DXY, -0.28% a measure of the U.S. unit against a basket of six major rivals, appreciated about 4%. The dollar index is sitting near a 14-year high, following the currency appreciation against the euro, pound, the yen and virtually all emerging market currencies. (news.financializer.com). As reported in the news.

ezubao: Other charges included illegal possession of weapons and undocumented border crossings, Xinhua said, according to Deutsche Welle. Watch video 01 51Fraught with fraud China anti-counterfeit illusion Booming P2P industry Ezubao, once China biggest P2P platform, allegedly collected 59.8 billion yuan from investors through fake investment projects it advertised on its website. The case features online peer-to-peer lender Ezubao and the illegal collection of some 60 billion yuan 8.64 billion, 8.27 billion euros . Ezubao parent companies Yucheng Holdings and Yucheng Global, along with 10 individuals, are charged with fraudulent fundraising, while 16 other people face charges of illegally taking public deposits. It eventually failed to repay 38 billion yuan. Chinese authorities have since unveiled a slew of new regulations aimed at strengthening the online finance industry. The platform collapsed in February, with executives saying the firm was a complete Ponzi scheme, which used investor funds to support lavish lifestyles for its managers. (news.financializer.com). As reported in the news.

hainan island: The U.S. on Friday demanded the return of the drone, according to Market Watch. But analysts suggested that a pullback was a knee-jerk reaction and an excuse for more consolidation ahead of the weekend. It was the first time the government in Beijing has seized a piece of U.S. military gear since the Chinese took a Navy surveillance plane on Hainan Island following a midair collision in April 2001. A lot of people are nervous about the relationship with China in light of President-elect Donald Trump provocative tweets about China, said Win Thin, global head of emerging market currency strategy at Brown Brothers Harriman. The measure of the dollar against a basket of major rivals is hovering near its 14-year high after the Federal Reserve earlier in the week boosted the currency by signaling more interest-rate increases are likely in 2017. I would not read too much into the move, however, as the dollar is due for a little of a consolidation after a run for the past several weeks, Win Thin said. (news.financializer.com). As reported in the news.

isles issue: A senior government official said Japan's combined investments, loans and credit line for Russia will total 300 billion under the deals, according to The Japan Times. But whether the agreements, which concluded the high-profile summit in Japan, will lead to substantial progress on the isles issue is anyone's guess. The leaders also announced an expansion in economic cooperation comprising about 80 business deals between companies and government bodies from both sides. Abe said any joint economic activities would be conducted under a special legal system that will ensure that each country can retain its legal arguments in the territorial dispute. Tokyo argues that Moscow is illegally occupying the islands and that any application of Russian law would be unacceptable. Russia insists the islands are its territory and that Russian law would apply to any economic activities on them. (news.financializer.com). As reported in the news.

losses gains: The central bank also gave domestic banks window guidance, requesting that they refrain from scaling back fundraising for non-banking institutions, the report said, adding such a move is commonly viewed by the market as a stabilizing measure after the foreign exchange, stock and bond markets experienced turmoil the previous day, according to Global Times China. On Thursday, while the stock market had only a mild reaction to the US interest rate hike, with the two major bourses in Shanghai and Shenzhen only taking small losses and gains respectively, the sovereign bond market had a dramatic day, with the 5-year and 10-year bond yields at one point reaching their lowest levels on record. The PBC said the move was to meet the liquidity demands of Chinese banks, and asked top financial institutions to take responsibility in transmitting monetary policies and stabilizing the market, ifeng reported, citing market insiders. The yuan also declined sharply against the US dollar on Thursday, as the PBC lowered the midpoint rate on the yuan to 6.9289 per dollar, the lowest level in more than eight years. But the yuan continued to devalue against the dollar on Friday after the PBC set the midpoint 219 points lower than the previous day to 6.9508, the lowest level since May 2008. The Chinese market however appeared to be stabilizing on Friday, as the 5-year and 10-year bond yields rebounded to post gains of 0.61 percent and 1 percent respectively, while the bourses in Shanghai and Shenzhen were up 0.17 percent and 0.77 percent respectively at market closing. (news.financializer.com). As reported in the news.

cent: The team says international exports were a bright light in 2016 as they rose by 11 per cent compared to 6.7 per cent nationally, according to Nine News Australia. And while the exports tapered off through the middle of the year they could grow again over the summer because of impressive agricultural crop yields. University of Adelaide economists have released their final SA-focused Economic Briefing Report for 2016, which predicts long-term unemployment and underemployment will hit record levels in 2017. SA Centre for Economic Studies Director Michael O'Neil says household and government spending experienced solid growth, with the gross state product - the total market value of goods and services - rising by 1.9 per cent. Given the rather slow economic conditions we're seeing internationally and nationally, it's not surprising that the South Australian economy has continued to post fairly subdued growth rates, Professor O'Neil said. But business investment fell, as a result of sharp drops in mining and manufacturing, less construction work on the Royal Adelaide Hospital and a broader national trend. (news.financializer.com). As reported in the news.

diplomat: No other benchmark of success really matters, and it can be measured by anyone who can count dollars by the billion, according to The Guardian. Success as the nation top diplomat will be harder to assess. As Exxon Mobil boss, Tillerson has the task of maximising profit on behalf of his shareholders. What price is to be put on US values human rights, and what is the rate of exchange of those objectives with national security There will be no shortage of opponents and rivals, in his own administration and probably in his own department, who will be counting minuses where he sees pluses or using entirely different units of measurement. In the many global crises that await Tillerson and all those still to come that will rear up in his face, there will be a tangle of interlocking interests that defy dealmaking . That is especially true in a situation where some of the main elements of Trumpian foreign policy contradict one another. There is rarely just a buyer and seller in diplomacy. (news.financializer.com). As reported in the news.

grace: But his fall from grace was mighty, according to Australian Broadcasting Corporation. A series of bad investments left him bankrupt in 2009. Dan Peled Related Story Former Billabong boss admitted forging wife's signature, court hears Map Brisbane 4000 At the height of his powers, former Billabong CEO Matthew Perrin was worth at least 50 million and was living the high life on the Gold Coast. His wife turned on him, and now he faces the prospect of jail for forgery and fraud. He was considered a brilliant law student at university, and met his ex-wife Nicole Bricknell through her bookmaker father when he was a young man. Here are the key points from his trial in Brisbane So, who is Matthew Perrin Perrin is a self-described risk taker lawyer, businessman and the main character in this case. (news.financializer.com). As reported in the news.

hearing: That's despite receiving 65 submissions, hearing evidence from 68 witnesses and holding seven public hearings since the inquiry was launched in April 2015 - interrupted by this year's federal election, according to Nine News Australia. It found that many parts of Australia, other than Sydney and Melbourne, have a relatively weak housing market and that policy should focus primarily on boosting supply in under-supplied markets. Parliament's lower house economics committee, stacked with government members, made no recommendations in a 55-page report released on Friday. It ruled out support for any tax rises for property investors, including Labor's proposal to limit negative gearing and discounts on capital gains tax. He noted the banking watchdog APRA had already moved to limit the rate of borrowing by investors and had to ability to take further action if needed. Increasing rates of tax on property investment would have a negative impact on the economy, Liberal chair David Coleman said. (news.financializer.com). As reported in the news.

one-in-two chance: Key points Analysts say there's a 50 per cent chance of Australia having its AAA credit rating downgraded next week Treasurer says he is willing to take on more debt after spending is under control Australia recorded worst economic result since GFC at start of December Economic analysts have warned Australia has a one-in-two chance of having its credit rating downgraded next week after the Government's mid-year economic update, which is expected to see an increase in borrowing costs, according to Australian Broadcasting Corporation. Treasurer Scott Morrison has sought to differentiate between good and bad debt, indicating he was willing to take on additional debt once spending was under control. ABC News Naomi Woodley Related Story Morrison draws good and bad debt distinction Related Story 'Reasonably high' chance AAA rating will be lost before Christmas Map Australia The Federal Treasury has not modelled the potential impact of Australia losing its AAA credit rating due to rising public debt. Bad debt is debt used for current spending purposes, no different than in a household, he told a finance conference earlier this week. The lack of modelling was detailed by Treasury officials in response to questions from Greens senator Peter Whish-Wilson. But the Treasury has not discussed this distinction with credit rating agencies, or sought to clarify their approach to assessing government borrowing for infrastructure. (news.financializer.com). As reported in the news.

morning session: It extended its winning streak to a ninth session, according to The Japan Times. On Thursday, the key market gauge rose 20.18 points. The 225-issue Nikkei average climbed 127.36 points, or 0.66 percent, to end at 19,401.15, its highest finish since Dec. 8, 2015. The Topix index of all first-section issues finished up 7.95 points, or 0.52 percent, at 1,550.67 after advancing 4.03 points the previous day. Tokyo stocks also drew support from an overnight rise in U.S. equities, led by financial issues due to higher long-term interest rates, brokers said. The dollar's first ascent above 118 in about 10 months pushed up a wide range of issues from the beginning of Friday's trading, with the Nikkei average briefly gaining more than 160 points early in the morning session. (news.financializer.com). As reported in the news.

sri: The president, noting that the coming three years have been named as development years of Sri Lanka, invited Malaysian investors to invest in Sri Lanka, according to Global Times China. He said the government is ready to provide all required facilities for the investors, the statement said. The statement said that President Sirisena headed a business meeting of leading businessmen and investors of Malaysia and Sri Lanka which was held in Kuala lumpur, with the objective of enhancing the trade and investment opportunities between the two countries. (news.financializer.com). As reported in the news.

stimulus measures: Meanwhile, the BOJ is expected to keep its monetary policy unchanged at its two-day policy meeting from Monday, according to The Japan Times. Business sentiment among Japanese companies has broadly improved in response to a recovery in exports and the crude oil market, according to the BOJ's tankan quarterly survey for December released Wednesday. The BOJ may revise up its assessment as the country's exports and production are recovering thanks to the yen's weakness and stock price increases stemming from hopes for economic stimulus measures by U.S. President-elect Donald Trump, the sources said. Automobile exports to advanced economies are solid and some companies have started increasing the production of smartphone-related products, a senior BOJ official said. As in November, the BOJ is likely to say that the economy is on a moderate recovery trend. Against this backdrop, the BOJ is expected to discuss whether to revise up its economic assessment at the upcoming monetary policy meeting, the sources said. (news.financializer.com). As reported in the news.

transaction volume: The most popular Shenzhen-listed stocks for overseas investment were home appliance makers Gree and Midea and liquor maker Wuliangye, whose transaction volume accounted for about one-third of the total trading volume over the past two weeks, according to Global Times China. This situation is within our expectations, which means that overseas investors have certain capital allocation demands for mainland shares, said Zhang, adding that it is too early to say whether the trend is set. The Shenzhen-Hong Kong Stock Connect saw net capital inflow of about 8.8 billion yuan 1.26 billion US dollars since opening on Dec. 1 as overseas investors bought more shares on the Shenzhen Stock Exchange than their mainland counterparts did on the Hong Kong market, according to Zhang Xiaojun, spokesperson with the China Securities Regulatory Commission CSRC . The purchase channel for Shenzhen-listed shares was much more active than that for Hong Kong-listed shares, according to Zhang. (news.financializer.com). As reported in the news.

water measurements: The Dow Jones Industrial Average DJIA, -0.04% which had been up by as many as 71 points earlier, swung to a loss after the Department of Defense announced a Chinese naval vessel took an underwater Navy drone that was collecting water measurements like temperature and salinity, according to Market Watch. The average finished down 8.83 points, or less than 0.1%, at 19,843.41. Even as the Dow was curtailed from its advance to the psychologically important 20,000 level, the blue-chip average still nabbed its longest weekly winning streak in more than a year, rising six weeks in a row. The largest blue-chip decliners were Caterpillar Inc.CAT, -2.06% and Goldman Sachs Group Inc.GS, -1.69% The S&P 500 SPX, -0.18% which had been struggling earlier, declined 3.96 points, or 0.2%, to close at 2,258.07. The biggest gainers were utilities and real estate, which both closed up 1.2% despite a weak reading on housing starts. All but five of the S&P 500 11 primary sectors rose on the day. (news.financializer.com). As reported in the news.

peer-to-peer currency: Unlike other online payments, the peer-to-peer currency does not require any third party to buy, sell or send, according to The Guardian. Venezuelans only need a phone, computer or on an online wallet service to store bitcoins which they can exchange at the black-market dollar exchange rate almost five times the official exchange rate. Venezuelans rush to ditch 100-bolivar bills after president sudden ban Read more Although Bitcoin users still represent a tiny minority, some believe that the currency will become more popular in Venezuela as economic uncertainty escalates. There are no official statistics on the number of bitcoin users in the country, but according to the brokerage website Surbitcoin a platform allowing Venezuelans to buy and sell bitcoins in exchange for bolivars the number of users has increased from 450 in August 2014 to more than 85,000 in November 2016. More and more people from different industries are getting on board, said Jorge Farias, the CEO of another exchange platform, cryptobuyer.io. Bitcoin is mainstream neither in Venezuela nor in the world but there is a growing interest in the technology. (news.financializer.com). As reported in the news.

richard wike: The survey, conducted by Pew Research Center, asked respondents all over the world whether today children will grow up to be better or worse off than their parents, according to CNN. It an interesting pattern globally, said Richard Wike, the Director of Global Attitudes Research at Pew Research Center, It more the developing and emerging nations where you see more optimism, and that true of what we see in Africa too. Key areas of optimism include the economy, education and health care, according to a recent Global Attitudes survey measuring public opinion in these three African nations. Kenya, Nigeria and South Africa were the only African countries surveyed as they are, according to Wike, the most politically and economically signification nations in the region . Read More In the three countries large majorities believe the economic future will improve in the near future. However this optimism is not blind, instead it correlates with each country recent development. The survey revealed Nigerians as the most optimistic, with 86% expecting their economic situation to improve in the next year, compared to approximately 60% of South Africans and Kenyans. (news.financializer.com). As reported in the news.

stock market: Rene Johnston / Toronto Star file photo By The Canadian Press Fri., Dec. 16, 2016 Canada biggest stock market moved up while major indexes south of the border edged down to close out the week, according to The Toronto Star. Toronto S&P/TSX composite index gained 33.89 points to 15,252.20. Earlier Friday, the index had risen to slightly above 15,300. Earlier in the morning, the index had risen to slightly above 15,300. The Nasdaq composite retreated 19.69 points to 5,437.16. In New York, the Dow Jones industrial average shed 8.83 points to 19,843.41, while the S&P 500 fell 3.96 points to 2,258.07. (news.financializer.com). As reported in the news.

sunderland: Sunderland v Watford match preview Read more Managing Sunderland always had an appeal to me but, if I d known about the financial situation, I d have needed to look at it in a different way, conceded Moyes, whose bottom-placed team are at home to Watford on Saturday, according to The Guardian. I d have had to have thought a lot more about taking the job. Martin Bain, the club chief executive, recently acknowledged that the manager would have very limited funds during next month transfer window as Ellis Short, the owner, attempts to reduce a 140m debt while keeping his 73m wage bill within Premier League remuneration cap rules. I didn t see us having no money in January. When Moyes succeeded Sam Allardyce, he remained unaware Short was willing to sell Sunderland in the near future. I m disappointed I won t be able to do some work in January and build on what we ve done so far. (news.financializer.com). As reported in the news.

surplus: The forecast builds on a similar surplus for 2015/16, the first since 2009/10, with the bottom line boosted by a 43 million saving from delays in opening the new Royal Adelaide Hospital and a higher contribution from the Motor Accident Commission, according to Nine News Australia. The surplus is also expected to rise to 383 million in 2017/18, 424 million in 2018/19 and 456 million in 2019/20, with the economy growing about three per cent each year. The government expects to post a 300 million surplus for 2016/17, a 46 million improvement which was revealed in the mid-year budget review on Friday. Treasurer Tom Koutsantonis said despite the good numbers, challenges remained including the possible loss of Australia's AAA credit rating and the looming closure of car maker Holden in 2017. Now is the time to make sure we can show we have the ability to live within our own means, he said. Now is the time to make sure we have headroom. (news.financializer.com). As reported in the news.

benjy: As MSNBC Benjy Sarlin noted, Trump said the exact opposite in September, arguing that the Fed is part of some kind of conspiracy to help Democrats, according to MSNBC. He added at the time that low interest rates had created a false economy, adding that a hike is inevitable at some point. Right now I am for low interest rates, and I think we keep them low, the then-candidate argued in May. Trump explicitly accused Janet Yellen, the current Fed chair, of keeping rates artificially low to boost President Obama. In theory, then, Trump should be delighted that the false economy and artificially low rates are headed in a new direction. I think she should be ashamed of herself, Trump said as part of his bizarre rant. (news.financializer.com). As reported in the news.

dollar: But investors were caught out by surprisingly bullish comments from Fed chair Janet Yellen in the wake of the announcement and by projections showing that 11 of her 17 policy-making colleagues see borrowing costs rising another three times in 2017, according to The Guardian. This is a true age of uncertainty for the world economy Barry Eichengreen Read more The news sent the dollar index with other currencies soaring to 102.62, its highest point since 2003. The US Federal Reserve increased rates as expected on Wednesday by a quarter of a point, only the second time it has done so since 2008. The euro was down 0.2% at 1.0512 after sliding to 1.0468, a trough not seen in 21 months. In Asian trading the Australian, Canadian and New Zealand dollars all suffered losses, as well as the Mexican peso. The pound dipped nearly US2c to 1.255. (news.financializer.com). As reported in the news.

exit culture: Short-termism, he continued, is difficult to uproot because it is driven by greed, fear and the desire for instant gratification, according to The Guardian. But Gilbert was clear on why the early exit culture infecting today market should be resisted by focusing on quality, long-termism leads to better outcomes. So said Martin Gilbert a year ago in a blistering blogpost for Aberdeen Asset Management, the fund management firm where he is chief executive. Great stuff, and an accurate summary of why the cut-and-run approach to managing money damages prosperity. An offer at a 40% premium to last week share price will accelerate and de-risk the delivery of future value for all Sky shareholders, he says. But here comes Gilbert, wearing his other hat of deputy chairman of Sky, endorsing the idea that Rupert Murdoch 10.75-a-share bid for the company is somehow fair. (news.financializer.com). As reported in the news.

figures: That dwarfed the figure for the lowest region, Wales, at 18,002 and was also doublethe level of 21,638 for the UK without London, according to The Guardian. The figures from the Office for National Statistics also showed the gap between the capital and the rest of the UK had grown over the last decade. Official figures showed gross value added GVA per head a measure of what is generated by economic activity in an area was higher in London than any other region in 2015 at 43,629. Responding to the latest sign of regional imbalances in the UK, the Trades Union Congress TUC called on the government to urgently step in with support, including investment in infrastructure projects like housebuilding, rail improvements, roads and clean energy. But there is a huge gap between London and other parts of the UK, said TUC general secretary, Frances O Grady. People in every part of Britain need a strong local economy, generating good jobs and improving living standards. (news.financializer.com). As reported in the news.