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

oil price: The oil price had also plummeted, reaching a 10-year low of 25, according to Deutsche Welle. That was the worst start to a new year in three decades, Valdes said. While stock-trading boards show prices in the green behind him, he recalls many a day in 2016 when shares were in negative territory. 2016 was a historic year for Wall Street, he told DW. On the first two trading days in the year, the S&P 500 index had tanked by 6 percent, continuing its downward slide until February 11. Like many of his colleagues, he had feared that the rest of the year would follow the same pattern that was prevalent in the first two months. But how exactly did this turnaround come about, despite various terror attacks, the UK's pro-Brexit vote, and the unexpected outcome of the US presidential election All these shocks have had something in common - initial panic was followed by market euphoria. There can be no more talk of any losses now. (news.financializer.com). As reported in the news.

securities rmbs: The DoJ had earlier sought a settlement about twice as big, according to Deutsche Welle. It is the DoJ's first accord with a European bank over misconduct that contributed to the US housing-market collapse. The bank's shares rose 4 percent in early trading on Friday on news of the settlement. The department has faced criticism for its perceived failure to hold senior executives to account following the financial crisis. The agreement should resolve a years-long US investigation into the German lender's dealings in residential mortgage-backed securities RMBS and other activities during 2005 to 2007 - removing a major legal hurdle for the bank. No major figures have suffered criminal conviction. (news.financializer.com). As reported in the news.

success rate: Players must buy coins to play the game, according to Global Times China. The more and the bigger the fish the players catch, the more points they earn. In the game center, there are some game machines called catching fish. Then the staff would exchange the points into cash for the players. According to the police, no game center is allowed to exchange game points for cash, as it is viewed as gambling. However, the staff can adjust the success rate of catching fish secretly. (news.financializer.com). As reported in the news.

tuscan lender: Monte dei Paschi di Siena MPS announced Thursday it had not been able to raise enough money on markets for its recapitalization scheme, according to Deutsche Welle. The Tuscan lender, the third-largest in the country, said in a statement that its four-day attempt to raise 5 billion euros 5.2 billion from private investors did not end successfully. Prime Minister Paolo Gentiloni said after a cabinet meeting it was aimed at ensuring the widest possible protection of citizens' savings and to make the Italian banking sector stronger and more solid. The government had indicated in recent days that it would be willing to take measures to support the bank. Monte dei Paschi was founded in 1472 and has seen many ups and downs in its history. Watch video 01 59Share Italy's banking dilemma Send Facebook Twitter Google Whatsapp if typeof WURFL 'object' if WURFL.is mobile && ! -1 WURFL.is mobile && ! -1 ; Tumblr linkedin stumble Digg reddit Newsvine Permalink banking dilemma All eyes on Rome On Tuesday, the government in Rome got permission from parliament to create a special 20-billion-euro rescue fund for the country's ailing banks, including MSP. The money will be raised through fresh borrowing. (news.financializer.com). As reported in the news.

wall street: After a rocky start, trading this year was marked by a rally that has taken major indexes to repeated records, but despite the tilt higher Wall Street has mostly been marked by a historic level of quiescence, according to Market Watch. The CBOE Volatility index VIX, 0.09% a measure of investor anxiety, recently fell to its lowest level since August 2015. However, observers may be hard pressed to discern any signs of the swiftly shifting political landscape in the equity markets. According to LPL Financial, the average level for the fear index in 2016 was below 16, the fifth straight year it has averaged below 20, the level considered its long-term average. Despite that, investors are nearly unanimous that the events of the year have injected huge amounts of uncertainty into the economy. Readings below 12 suggests that the market isn't betting on any sharp market swings. (news.financializer.com). As reported in the news.

growth rate: In normal times, a quarterly growth rate of 0.6% would be wholly unexceptional for Britain and hardly worthy of comment, according to The Guardian. The economy has tended to expand by about 2.0% to 2.5% a year, so 0.6% over three months is about par for the course. That sums up the performance of the UK economy in the first three months after the Brexit referendum in June. These, though, were not normal times. Threadneedle Street predicted that the economy would barely grow in the third quarter. The expectation of the Bank of England, the International Monetary Fund, the Treasury and the Organisation for Economic Cooperation was that a vote to leave the EU would result in instant economic carnage. (news.financializer.com). As reported in the news.

k-mart division: So does the K-mart division of Sears Holdings Inc, according to The Toronto Star. So do specialty apparel marketers Under Armour and Nike Inc. Nina Westervelt/The New York Times By David Olive Business Columnist Business Columnist Fri., Dec. 23, 2016 Discounter Target Corp. sells activewear. Even Beyonc has an activewear line. That is, after all, so often the fate of pioneers. With almost every general merchandiser and specialized apparel marketer selling activewear, Vancouver-based Lululemon Athletic Inc. should by now have been left in the dust. (news.financializer.com). As reported in the news.

loan forgiveness: That negotiating figure caused Deutsche Bank's stock to plummet and raised questions about the bank's stability and the risks it poses to the financial system, according to The Guardian. Under the settlement, Deutsche Bank would pay a civil monetary penalty of 3.1bn and provide 4.1bn in consumer relief in the United States, such as loan forgiveness. The agreement is less than the 14bn the US asked Deutsche Bank to pay in September to settle the claims. Deutsche Bank's potential 14bn penalty in 10 simple charts Read more The agreement was not final and there could be no assurance that the DoJ and the bank would agree on the final documentation, the bank said on Friday. The settlement marked the first in a possible string of mortgage-related resolutions or lawsuits by the DoJ for European banks. Deutsche Bank expected to record a pretax charge of about 1.17bn in its fourth quarter because of the civil monetary penalty. (news.financializer.com). As reported in the news.

sector: Gross domestic product contracted by 0.3 per cent for the month, the first decline since wildfires devastated a swath of Fort McMurray, Alta. and dealt a severe blow to the oil and gas sector four months ago, according to The Toronto Star. Stats Can served up a dud to wrap up 2016, BMO chief economist Doug Porter wrote in an analysis. JONATHAN HAYWARD / THE CANADIAN PRESS By David Paddon The Canadian Press Fri., Dec. 23, 2016 TORONTO Canada's economy unexpectedly shrank in October, weighed down by the worst manufacturing output in nearly three years, Statistics Canada said Friday. Aside from the fire-damaged drop in May, this was the worst monthly reading for the economy in the past year. Manufacturing was down two per cent, the biggest monthly drop since December 2013. As much as I would love to tell you that it was due to one or two special factors, the weakness was relatively broad-based across the goods-producing sector, with declines in tourism-related sectors and finance thrown in for good measure. (news.financializer.com). As reported in the news.

assembly: They'll meet again January 11 for a regular session of the General Assembly, at which time they might discuss repeal again, according to CNN. For now, House Bill 2 stands as the law in North Carolina. People in the gallery chanted shame as the gavel came down about 7 30 p.m. and lawmakers headed home. Signed by the governor in March, HB2 bans people from using public bathrooms that don't correspond to their biological sex as listed on their birth certificates. Accusations about what happened broke down along party lines. Backlash against HB2 caused huge economic losses for the state, such as businesses canceling plans to expand and the NBA moving its all-star game from Charlotte to another city. (news.financializer.com). As reported in the news.

canadian dollar: The S&P 500 was down 4.22 points at 2,260.96 and the Nasdaq composite lost 24.01 points to 5,447.42, according to The Toronto Star. In commodities, the February crude contract rose 46 cents to 52.95 U.S. per barrel and the February gold contract lost 2.50 at 1,130.70 U.S. an ounce. The S&P/TSX composite index gained 29.34 points at 15,335.23 as the Canadian dollar dipped 0.50 of a U.S. cent at 74.09 cents US. In New York, the Dow Jones industrial average was down 23.08 points at 19,918.88. Article Continued Below March copper contracts were flat at 2.50 U.S. a pound and January natural gas was unchanged at 3.54 U.S. per mmBTU. Read more about United States, Tsx The Morning Headlines Newsletter Delivered daily to your inbox. Sign up react-empty 176 (news.financializer.com). As reported in the news.

consumer spending: This is above the government's prior estimate of 3.2% due to upward revisions in consumer spending and business investment, according to Market Watch. Economists polled by Market Watch had expected GDP to be revised to growth of 3.3%. Consumer spending, which added 2 percentage points to GDP, rose at a 3% annual rate, up from the prior estimate of 2.8%. Business investments rose at a revised 1.4% rate, much stronger than the previous estimate of a 0.1% rise. The Commerce Department said the economy expanded at a seasonally adjusted 3.5% annualized rate in the third quarter. The trade sector was a big positive for growth in the third quarter. Read This little bean could lead to big third-quarter GDP The data signal that the manufacturing, trade, and energy sectors stabilized during the quarter after nearly two years of contraction, said Michael Gapen, chief U.S. economist at Barclays. Exports spiked 10% helped by a temporary boom in U.S. soybean shipments. (news.financializer.com). As reported in the news.

energy source: The meeting reviewed progress in 165 major projects outlined in the 13th Five-Year Plan 2016-2020 and discussed some major projects concerning people's livelihoods, according to a statement released after the meeting, according to Global Times China. Winter heating using clean energy is one of them, as the country still relies heavily on coal as a major energy source. The fundamental goal of maintaining growth pace and promoting economic development is to seek proper solutions to prominent issues of people's common concerns, Xi said at the 14th meeting of the Central Leading Group on Finance and Economic Affairs. Promoting clean winter heating in northern areas has a bearing on people's warmth in north China and also on whether the number of smoggy days can drop, according to Xi, who heads the central leading group. Natural gas and electricity can be substitutes for coal in heating buildings in north China, Xi said. A large part of north China has been under heavy smog since last weekend, with more than 20 cities on red alerts, the highest level in a four-tier warning system. (news.financializer.com). As reported in the news.

investment fdi: China's foreign direct investment FDI into Latin America also stands to gain, according to Global Times China. For example, in November, the Coca Code Sinclair hydroelectric station, constructed by State-owned Power China International Group with capacity of 1,500 megawatts, went into operation in Ecuador. In the first half of 2016, trade between China and Latin America dropped 11.3 percent to 99.2 billion, partly due to the overall global sluggish demand, according to the Ministry of Commerce MOFCOM . Despite the decline, China still became the region's second-largest trading partner this year. In October, Envision Energy was awarded a contract to install its 2.5 megawatt turbines at four wind farms with total capacity of 186 megawatts in Argentina. At this time, projects like the hydroelectric station and turbines, with a focus on infrastructure and new energy, will provide these countries with the stimulus to upgrade their current economic structure, and even serve as a new engine of growth, Jiang Shixue, director of Latin American Studies at Shanghai University, told the Global Times on Tuesday. Resource-rich Latin American countries have struggled with plunging global commodity prices in recent years, which has hurt the region's export-driven economy. (news.financializer.com). As reported in the news.

january february: Will the gains be followed by pain The chart below plots the S&P 500 against six different sentiment gauges, according to Market Watch. The dashed green line highlights how bearish investors were in January/February when the Profit Radar Report issued a buy signal at S&P 1,828 . Caption outside of wrapper for normal article images The arrows show how much more bullish investors are now compared to January red arrows indicate VIX and put/call ratio declines, a reflection of bullish sentiment . Based on investor sentiment, there's significant down side risk. Investor sentiment has gone from extremely bearish to extremely bullish. Do other indicators agree Liquidity There is a lot of money flowing into the stock market, which is a positive. Technicals Back in August, technical analysis strongly suggested a stock-market rally even more powerful than expected at the beginning of the year more detail available here . On Jan. 31, the Profit Radar Report published the 2016 S&P 500 Forecast with the below projection the projection is based on four key indicators liquidity, technical analysis, sentiment and seasonality . Caption outside of wrapper for normal article images As per the yellow projection, the year-end target was at 2,220, with resistance Fibonacci, trend line, trend channel at 2,250-2,290. In fact, on Sept. 25, the Profit Radar Report pointed out that our liquidity indicator already climbed to new all-time highs, even though the S&P 500 SPX, 0.13% did not detailed liquidity analysis available here . The stock market usually follows the money, and when money liquidity flows into stocks, stock prices will follow, which is what we've seen the last six weeks. (news.financializer.com). As reported in the news.

case: Since the Charity Commission stepped in, the agency has agreed to pay back 325,000, according to The Guardian. The case is likely to raise concerns about the fundraising strategies used by some charities, some of which result in high management costs. Hospice Aid UK agreed a seven-year deal with Piccadilly-based marketers Euro DM that resulted in the public being misled over how much money would be given to hospices. Hospice Aid UK was set up to raise money and then pass it on to hospices across the country. In that year, the charity raised 132,023, but only made grants worth 2,557. However, the Charity Commission began looking at the charity after it only passed on 1.9% of its income to hospices in 2012. (news.financializer.com). As reported in the news.

delay: CNN The latest evacuations from eastern Aleppo resumed Wednesday after a brief delay, according to Syrian state television, according to CNN. No reason was given for the delay. Please tag CNNiReport in your message. The International Red Cross said snow has been falling and many are struggling to keep warm. With snow falling, it's freezing and many have little means to keep warm. According to Syrian state TV, a number of buses with armed people and their families were leaving the Al-Sokkari area in eastern Aleppo and heading to Al-Rashdin in western Aleppo. var id function make Embed Script d, id var js,fjs;js id;js.charset '' ;fjs fjs ;js.src id ;We took this video near the front line in Aleppo this morning. (news.financializer.com). As reported in the news.

department: Two letters obtained Thursday by The Associated Press outline the state Environment Department's findings from a recent inspection of the Waste Isolation Pilot Plant, according to The Toronto Star. Regulators found two minor permit violations but said those were addressed immediately. New Mexico Environment Department By Susan Montoya Bryan Associated Press Thu., Dec. 22, 2016 ALBUQUERQUE, N.M. New Mexico regulators have approved restarting normal operations at the nation's only underground nuclear waste repository, a major step for U.S. officials aiming to reopen the facility nearly three years after a radiation leak shut it down indefinitely. The site run by the U.S. Energy Department has been closed since a radiation release in February 2014 contaminated much of the underground disposal area. The shutdown halted the shipment of tons of Cold War-era waste from sites across the country, compromising the government's multibillion-dollar cleanup campaign and resulting in an overhaul of policies and procedures across the nuclear complex. The leak stemmed from a chemical reaction inside a container of waste. (news.financializer.com). As reported in the news.

record lows: Italy's political class should be very alarmed if MPS needs state bailout Read more Shares in the bank, Italy's third largest, gyrated wildly in Wednesday's trading session, plunging 18% to record lows before closing 12% lower amid rumours that the fundraising effort would fail, according to The Guardian. The idea that Qatar could be an anchor investor has vanished and without an anchor investor there is no demand from anyone else, one source told Reuters. Despite announcing on Wednesday night that a debt-for-equity swap offer raised slightly over 2bn part of a complex fundraising exercise intended to bolster the strength of the bank the failure to persuade a major investor to contribute 1bn meant the rescue plan would not succeed before it closed at 2pm on Thursday. With MPS now likely to miss an end-of-year deadline imposed by the European Central Bank to raise fresh funds, the Italian government was expected to step in, possibly as soon as Thursday, and increase its 4% stake in the bank. Gentiloni was propelled into the role after Matteo Renzi resigned following the referendum defeat earlier this month that sparked fresh political turmoil and deterred investors from backing the fundraising. Led by prime minister, Paolo Gentiloni, the government is now expected to force private investors owning about 2.1bn of the bank's bonds to take losses. (news.financializer.com). As reported in the news.

code: On the busiest week of the year at Sydney Markets, produce was being raced in, registered and sold through the small hours of the morning, according to Australian Broadcasting Corporation. But any trader who was not giving a price on the produce back to growers when they received it may be breaking the Horticultural Code. ABC Rural Sarina Locke Map Sydney 2000 Wholesalers say the Horticulture Code of Conduct is unworkable and needs to change by next April, but many do not operate under it. This situation is about to change because by April 2017, there will be a new code. Wholesalers have until 1am to give price At the Sydney wholesale markets, 1,000 forklift trucks rush produce from their trucks, to the wholesalers to be prices and sold and loaded back onto the trucks. Central market traders agree the current code is hopeless, but wants to make sure a new code is fair. (news.financializer.com). As reported in the news.

june france: In all the Argentines won 10 of their 15 games, with one of their three losses coming in the continental showpiece on penalties to Chile in June, according to The Japan Times. France, too, lost its own continental showpiece in extra time to Portugal on home soil, but was named mover of the year after gaining the most ranking points with 13 wins out of 17 games. Argentina finishes 2016 out in front of archrival Brazil to inherit the team of the year title from Belgium, displaced from the FIFA summit by the Edgardo Bauza-coached Albiceleste in April. (news.financializer.com). As reported in the news.

p spx: The S&P 500 SPX, 0.13% closed 4.22 points, or 0.2%, lower at 2,260.96, only 11 points below its all-time high set last week, according to Market Watch. Of the S&P 500's 11 main sectors, seven closed in negative territory. The S&P 500 and Nasdaq Composite booked their first consecutive losses in three weeks, as the Trump rally lost momentum over the past few sessions. Consumer discretionary stocks were among the biggest losers, with the sectors finishing 1% lower. The blue-chip index struggled to hit 20,000 as the psychologically important level has eluded it for days amid stalled momentum. The Dow Jones Industrial Average DJIA, 0.07% finished 23.08 points, or 0.1%, lower at 19,918.88. (news.financializer.com). As reported in the news.

reserve adjustment: When the Fed announced its second rate hike in 10 years earlier this month, it penciled in three increases for 2017, according to Market Watch. The Chicago Fed national activity index fell to negative 0.27 in November from an upwardly revised negative 0.05 in October. The report helps fuel the argument among some economists that any Federal Reserve adjustment to interest rates in 2017 will be moderate absent signs of inflationary economic growth. The index's three-month moving average, which tends to offer a clearer picture of the trend in economic activity than the monthly reading alone, improved to negative 0.14 in November from an upwardly revised negative 0.20 in October. A reading of -0.27 still suggests the U.S. economy expanded at a below-average rate and is easing its foot off the accelerator after a stronger performance in early summer, said Steven Shields, economist with Moody's Economy. The index is a weighted average of 85 economic indicators, designed so that zero represents trend growth and a three-month average below negative 0.70 suggests a recession has begun. (news.financializer.com). As reported in the news.

spending money: The US Federal Reserve's interest rate hike in December, the spreading protectionist moves and political uncertainty were cited by the BOK as downside risk factors to the economy, according to Global Times China. The impeachment of President Park Geun-hye increased economic uncertainty in the absence of control tower, leading consumers to refrain from spending money. The BOK said in its activity report to the National Assembly that uncertainties about the Asia's No.4 economy's growth path got big in consideration of altered conditions at home and abroad. Facility investment also worsened. The BOK cut its policy rate from 3.25 percent in July 2014 to an all-time low of 1.25 percent in June this year. After lifting the benchmark rate in December, the Fed indicated three rate hikes in 2017, boosting worries about possible foreign capital exodus from the South Korean financial market. (news.financializer.com). As reported in the news.

tourism accounts: He's never experienced anything like the present situation some months after the failed coup in mid-July, according to Deutsche Welle. In the first days after the putsch, it hadn't been so obvious at all, he said. For 35 years, he's run a small jewelry shop in a backstreet near a bazaar in Istanbul. But in the process, we witnessed more and more customers staying away. Tourism accounts for roughly 13 percent of Turkey's gross domestic product GDP . Since the beginning of 2016, revenues from the sector have shrunk by 40 percent, also hitting Hasan Selamat. I can personally understand the tourists as many live in fear and do not want to travel to Istanbul because of the recent political events. (news.financializer.com). As reported in the news.

transition official: Incoming White House Chief of Staff Reince Priebus floated a 5% tariff on imports in meetings with key Washington players last week, according to two sources who represent business interests in Washington, according to CNN. But the senior transition official who spoke to CNN Thursday on the condition of anonymity said the higher figure is now in play. A senior Trump transition official said Thursday the team is mulling up to a 10% tariff aimed at spurring US manufacturing, which could be implemented via executive action or as part of a sweeping tax reform package they would push through Congress. Such a move would deliver on Trump's America First campaign theme, but risks drawing the US into a trade war with other countries and driving up the cost of consumer goods in the US. And it's causing alarm among business interests and the pro-trade Republican establishment. Read More Aides to Ryan and Brady declined to say they had common ground with Trump, but acknowledged they are in deep discussions with transition staffers on the issue. The senior transition official said the transition team is beginning to find common ground with House Speaker Paul Ryan and Ways and Means Committee Chairman Kevin Brady, pointing in particular to the border adjustment tax measure included in House Republicans' Better Way tax reform proposal, which would disincentivize imports through tax policy. (news.financializer.com). As reported in the news.