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

african: So let's stop preaching and just focus on what we can do to help creating economic opportunities, according to Deutsche Welle. And then provide a platform or a forum where African governments can make their own commitments, which will signal to investors that Africa is indeed open for business. What is your main advice Paul Collier In my experience, African governments are sick of being preached to. The German government will be hosting a major Africa conference in June 2017, and it will be a chance for African governments to promote their own investment environments before a business audience. It's been a meeting of minds, there have been no arguments or disagreements or tensions. I was brought in by the German Ministry of Finance. (news.financializer.com). As reported in the news.

challenges vietnam: According to a Business Insider report citing London-based consultancy Capital Economics on Tuesday, Vietnam could be sowing the seeds of the next crisis with its loose monetary policy, according to Global Times China. Further worrying are the challenges Vietnam faces integrating itself into the global manufacturing chains. The country's economic slowdown can be largely attributed to a severe drought and it remains uncertain whether growth will resume its momentum in 2017. Vietnam's manufacturing industry has been rapidly expanding, which has allowed the Southeast Asian country to prosper in the past few years. However, as the US serves as Vietnam's largest market for exports and is a major source of foreign direct investment, it is possible that the Vietnamese economy could suffer seeing as US President-elect Donald Trump has encouraged the US to pursue trade protectionism policies. Labor-intensive processing bases have been built in the country because of the labor cost advantages and now the country plays an increasingly important role in global production chains. (news.financializer.com). As reported in the news.

economy: The Cuban economy didn't collapse as many international media outlets predicted earlier in the year, said Castro during his traditional end-of-year speech in parliament, according to Global Times China. However, Castro admitted that the economy was hit hard as there were drastic cuts in imports and investment in the second half of the year. The Cuban economy will resume its upward path in 2017 and grow moderately by around 2 percent, with strong growth in the sugar industry and tourism, Castro told a plenary session of Cuba's unicameral parliament. The tense economic situation is compounding the severe financial and infrastructure losses caused by Hurricane Matthew, which hit the eastern tip of the island in October, Castro said. The harmful effects of the US-led trade embargo continued to hamstring the economy, despite numerous measures taken by the White House to relax the sanctions and restrictions. More than 8,000 homes were damaged or destroyed, and schools, warehouses, hotels and other institutions were affected by the most powerful hurricane in a decade. (news.financializer.com). As reported in the news.

etfs: In the case of equity products, mutual funds saw outflows this past week while stock ETFs saw inflows, an indication of how investors are preferring one structure over another, as opposed to betting on the direction of the asset class, according to Market Watch. The shift can be seen in the table of fund flows below, which covers the week ended Dec. 21; all the figures represent millions of dollars. This change can be seen in weekly flow data, where in all fund categories including equity, bond, and hybrid funds the inflows were either greater going into ETFs or the outflows were smaller, according to data from the Investment Company Institute. CategoryETFsMutual Funds Total equity119-5,106World equity1,119-1,428Hybrid funds-2,066-2,111Total Mutual funds and ETFs have similarities in that they both offer access to baskets of securities. However, ETFs also have qualities that make them increasingly attractive to investors and traders. There are even identical funds in both categories; for example, the Vanguard 500 Index Fund VFINX, -0.02% a mutual fund, and the Vanguard S&P500 ETF VOO, -0.02% Both track the S&P 500 SPX, -0.03% holding the same companies in the same proportions as the underlying index. (news.financializer.com). As reported in the news.

inflows: Others have argued that a sharp surge in flows into equity exchange-traded funds may offer at least a near-term warning, raising questions about who is left to buy, according to Market Watch. Trim Tabs last week said that U.S. stock ETFs saw 97.6 billion in inflows between Nov. 8 and Dec. 15 around 150% of the 61.5 billion that flowed into the category over all of 2015. But a longer look back at fund flows shows that investors might still have plenty of room for further buying, say analysts at Jefferies. See Stampede' into stock ETFs may signal losses ahead But pointing to the chart below, the Jefferies analysts note that while there were big inflows into equities in November, there have only been just over 140 billion in inflows into active and passive equity funds since the March 2009 lows versus the 1.5 trillion in inflows into bond funds over the same period. And analysts generally contend that flows follow performance, not the other way round. Caption outside of wrapper for normal article images Of course, just because there's room for more inflows doesn't mean they'll emerge. (news.financializer.com). As reported in the news.

italy japan: The winners, led by a rich and self-confident United States, shaped the postwar world, according to The Japan Times. The institutions created by the allies chief among them the United Nations, the International Monetary Fund and the World Bank have their origins in debates among the Allies during the war; they were designed to bring stability, replace war with argument, ensure development aid for the impoverished. After that vast and hideous conflict, democracies defeated the tyrannies of Germany, Italy and Japan ironically, a victory made certain by the unrivaled human sacrifices of the largest tyranny of all, the Soviet Union. In 1948, Washington put some 12 billion to 13 billion about 120 billion in 2016 values into the reconstruction of a ruined Europe. In these postwar years, the victors were confident in their political systems, seeing them as drawing strength from the active engagement of the citizens in elections, in political parties and in open debate. Called the Marshall Plan after U.S. Secretary of State George Marshall, the aid was designed to underpin democratic government and keep at bay the then powerful forces of communism. (news.financializer.com). As reported in the news.

media publicity: The Secretary-General plays a unique and critical role in international relations, according to Deutsche Welle. In her role as deputy, Mohammed will carry out these duties and undertake the essential task of engaging with and mediating between conflicting parties. In her new job, Mohammed, a mother of six, will assist the Secretary-General in managing operations at the Secretariat, representing him at conferences and official functions. She is a global public servant now, responsible for the entire world. I am sure the president found it difficult to let her go, but it is an honor for us. That is an image booster for Nigeria said Femi Adesina, special advisor on media and publicity to President Muhammadu Buhari. (news.financializer.com). As reported in the news.

jens weidmann: Europe's central bank was modeled in large part on the Bundesbank and also based in Frankfurt, according to Deutsche Welle. Hans Tietmeyer was an outstanding president, who always acted with the goal of monetary stability in mind, current Bundesbank chief Jens Weidmann said in a statement on Wednesday. Credited with establishing independence and price stability as a key pillar of the European Central Bank, he believed that member countries had to do their share to maintain competitiveness and sustainable growth. Our thoughts and sympathies go out to his family. He fears the scheme may not comply with new EU rules. 27.12.2016 Italy moves to rescue its banks Italy has moved to rescue banks teetering on the edge of insolvency - by agreeing to inject billions of euros on the public tab. DW recommends Bundesbank chief wary of Monte dei Paschi rescue plan The head of Germany's central bank, Jens Weidmann, has said the planned state-funded rescue of Italian lender Monte dei Paschi needs to be analyzed very carefully. (news.financializer.com). As reported in the news.

oil prices: Don't fight the Fed and don't fight the tape, as the late, great Marty Zweig used to say, according to Market Watch. I always knew that at some point the market would humble me, but I thought I'd probably be mauled by an unexpected bear. That was easy for the first five years, when I stayed steadfastly bullish, especially on U.S. stocks. This year, I made the opposite mistake. The Federal Reserve had just raised the federal funds rate for the first time in nine years, and a more hawkish Federal Open Market Committee seemed poised to raise them a few more times. In early January, earnings were falling, oil prices had plummeted, and stocks were selling off, too. (news.financializer.com). As reported in the news.

points: The CSI 300 Index of the biggest companies traded in Shanghai and Shenzhen shed 0.44 percent to 3,301.89 points, according to Global Times China. The Chi Next Index, which tracks the country's NASDAQ-style board for growth enterprises, fell 0.58 percent to 1,957.15 points. The benchmark Shanghai Composite Index declined 0.4 percent to 3,102.24 points, while the Shenzhen Component Index closed 0.42 percent lower at 10,187.16 points. Trading volume remained thin on the Shanghai and Shenzhen exchanges. The stock markets have slumped over the last few days due to the fraud seal incident of Sealand Securities. A total of 351.52 billion yuan 50.55 billion in shares changed hands on Wednesday, down from 362.6 billion yuan on Tuesday. (news.financializer.com). As reported in the news.

topix index: On Tuesday, the key market gauge gained 6.42 points, according to The Japan Times. The Topix index of all first-section issues, on the other hand, finished up 0.58 point, or 0.04 percent, at 1,536.80, after climbing 1.92 points the previous day. The 225-issue Nikkei average ended 1.34 points, or 0.01 percent, lower at 19,401.42. The Tokyo market got off to a weaker start, affected by price drops for shares that went ex-dividend on Wednesday, which worked to push down the Nikkei average by some 30 points, brokers said. Investors took heart from brisk U.S. economic indicators, according to brokers. But the market's downside was limited, supported by higher U.S. equities overnight, with the tech-heavy Nasdaq composite index rewriting a record closing high for the first time in a week. (news.financializer.com). As reported in the news.

corruption ring: Lopez was arrested in June, accused of trying to conceal around 9 million 8.6 million euros in cash in a monastery, according to Deutsche Welle. The source of the money remains unclear. Two former aides - ex-Planning Minister Julio de Vido and former Public Works Secretary Jose Lopez - were also named, along with businessman Lazaro Baez, whose company Grupo Austral allegedly received irregular contracts for road construction. Frozen assets Fernandez' assets, estimated at more than 10 billion pesos 615 million euros; 643 million were frozen as a result of the judge's order, according to the justice news portal CIJ. Fernandez and her co-defendants are accused of involvement with a corruption ring that gave particular companies a favored status when contracts were given for public works projects between May 2003 and December 2015. In May, she was indicted on charges of manipulating currency exchange futures markets, allegedly causing large losses in government finances. She denies any wrongdoing. (news.financializer.com). As reported in the news.

customs regulation: According to Chairman of board of the Eurasian Economic Commission Tigran Sargsyan, the President of Kyrgyzstan Almazbek Atambayev signed the Customs Code, but with exception of the part about regulations of foreign economic activity due to the need to clarify some statements, according to Global Times China. The Customs Code is the the first important legal act affecting the sphere of the customs regulation within the Eurasian Economic Union,which functions since January 1, 2015 and includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. Petersburg. The President of Belarus didn't participate in the meeting, so the document will be handed over to him to be signed later. (news.financializer.com). As reported in the news.

investors traders: Stocks have performed well since Trump's unexpected electoral victory last month, with major indexes getting about half of their year-to-date gains in the postelection rally, according to Market Watch. Investors expect that Trump's economic platform which is expected to include massive corporate tax cuts, infrastructure spending, and environmental and financial deregulation, although few details have been released will prove bullish to the equity market. Like a lot of investors and traders, Schwab analysts see an acceleration in economic growth next year, thanks to the policies that President-election is expected to support. U.S. stocks could reach new highs in 2017 amid expectations that Trump's platform will make additional tax reductions and increased corporate spending possible, potentially leading to stronger corporate earnings growth, Omar Aguilar, the company's chief investment officer of equities and multiasset strategies, wrote in a note to clients. Read Wall Street's Trump optimism comes with heavy dose of uncertainty See also Is the stock market ignoring one of the most important risks of 2017 An average of analysts at major firms expect the S&P 500 SPX, -0.84% will end 2017 at 2,359, a level that represents growth of 4% from current levels. This combination may outweigh concerns about political uncertainty and Trump's protectionist stance. (news.financializer.com). As reported in the news.

issue bonds: The company was in discussions last year with investors to sell as much as 330 billion yen 2.81 billion of bonds, according to Global Times China. A Tepco spokesman said the company still plans to issue bonds by the end of March but declined to comment on specific target dates or sizes. While the size of the sale has not been decided, potential maturities being discussed are 3-, 5- and 10-year bonds, bankers and investors told Thomson Reuters Deal Watch, asking not to be identified because the information is private. (news.financializer.com). As reported in the news.

michael keating: Nonetheless it could mark a watershed on the road to democratic governance for a country long regarded as a failed state, according to Deutsche Welle. The 14,025 delegates, who were selected by their clan chiefs, have been choosing a new parliament for the people of Somalia over the last few weeks. It's a rather modest figure for a country with a population of eleven million. That parliament was to have chosen a new president on Wednesday 28.12.2016 but the vote has now been moved back to January 24, according to the Somali electoral commission. Many had doubted that it would take place at all, Michael Keating, the special representative of the UN secretary-general to Somalia, told DW. These are only the second elections to be mounted in Somalia since longtime dictator Mohamed Siad Barre was ousted in 1991. Better flawed than none The most important thing is that the election actually takes place. (news.financializer.com). As reported in the news.

post-election surge: The consumer confidence index jumped to 113.7 from a revised 109.4 in November, the Conference Board said Tuesday, according to Market Watch. U.S. stock markets SPX, -0.84% have rallied sharply to record levels since the surprise election of Donald Trump in November on the assumption that his administration will be good for business. Trump effect WASHINGTON Market Watch Consumer confidence surged in December to the highest level since 2001, reflecting an improved U.S. economy and anticipation of the incoming Trump administration, especially among older Americans. The economy continues to improve, with the unemployment tumbling below 5%. The post-election surge in optimism for the economy, jobs and income prospects, as well as for stock prices which reached a 13-year high, was most pronounced among older consumers, said Lynn Franco, director of economic indicators at board. The world was gloomy before I won - there was no hope. In a tweet on Monday, the president-elect took credit for the market rally, suggesting that Americans have fresh hope after his victory. (news.financializer.com). As reported in the news.

record: The Nasdaq Composite COMP, -0.89% however, notched a record close, finishing with a gain of 0.5% at 5,487.44, according to Market Watch. The S&P 500 SPX, -0.84% notched a minor rise, up 0.2% at 2,268.88. The Dow Jones Industrial Average DJIA, -0.56% rose 11.23 points, or 0.1%, to end at 19,945.04, according to preliminary figures, remaining just shy of the psychologically important 20,000 milestone. Read the full story Nasdaq ends at record, but 20,000 remains elusive for the Dow (news.financializer.com). As reported in the news.

work conferences: The real economy is surely facing various problems as noted at the recent Central Economic Work Conference in addition to economic work conferences in some provinces and by some Chinese CEOs, said Feng Liguo, an expert at Beijing-based China Enterprise Confederation CEC . It's been an issue hovering around in recent years, according to Global Times China. The traditional advantages in industry, for example manufacturing, have been fading away but the new growth engines have not emerged, Feng said. Photo IC Profit for China's major companies in 2016 Chinese companies will face a challenging year in 2017, and the central and local governments will have to accelerate economic restructuring and political reforms to help the real economy grow, experts said on Tuesday. Government agendas At East China's Jiangsu Province's economic work conference it was agreed that the real economy has been fundamental for local economic growth, and that helping local enterprises will be a focus for the government in 2017, news site people.cn reported on Sunday. In South China's Guangdong Province - where secondary industry has contributed to nearly half of its GDP growth - revitalizing the real economy is one of its priorities for 2017, financial news site eastmoney reported on December 19. More work should be made to improve market confidence, particularly in private investment as well as in local manufacturing, Li Guoying, acting governor of East China's Anhui Province said at a meeting on Sunday, according to the central government's website. (news.financializer.com). As reported in the news.

aozora bank: Some profit-taking on the dollar's recent surge weighed on the U.S. currency, according to Market Watch. Market participants are now reluctant to keep buying the dollar after having lifted it since the U.S. presidential election in early November. Trading was thin because participants in many countries were away for public holidays. The ascent was driven by speculation that President-elect Donald Trump will boost fiscal spending and introduce tax cuts, including possibly tax relief for U.S. companies repatriating earnings held overseas. If he can works well with Congress, more dollar-buying is likely, said Akira Moroga, joint general manager of market products division at Aozora Bank. Market participants are now watching to see if Trump would indeed take steps to improve the U.S. economy. (news.financializer.com). As reported in the news.

crimea seizure: Prime Minister Shinzo Abe's government believes in improving ties with Russia, but this does not preclude remaining tough on the Crimea issue, the sources said, according to The Japan Times. The latest G-7 summit, held in May in Mie Prefecture with Abe as chairman, adopted a statement condemning Russia's annexation of Crimea in 2014. Japan will explain to the rest of the G-7 the need for the policy both to settle bilateral issues and allay growing concerns that Tokyo could withdraw from the anti-Russia coalition against the Crimea seizure, the sources said Sunday. We cannot stop condemning Russia unless Crimea's sovereignty returns to Ukraine, one of the sources said. But Abe will make good on a recent agreement with President Vladimir Putin to provide a 300 billion package to help boost the Russian economy. Another said the need to continue with the current sanctions is likely to be a topic at next year's G-7 summit, which will be held in Italy. (news.financializer.com). As reported in the news.

bank: Die Finanzlage der Bank habe sich seit Ende November drastisch verschlechtert, hei t es, according to Deutsche Welle. Die Redaktion empfiehlt Gelassene Reaktion auf MPS-Rettungplan Die italienische Krisenbank Monte dei Paschi wird vom Staat aufgefangen. Bisher war von f nf Milliarden Euro ausgegangen worden. Eigentlich ist das ein Versto gegen europ ische Regeln, doch die EU scheint Italien keine Steine in den Weg legen zu wollen. 23.12.2016 Hilfspaket f r Italiens Banken beschlossen Die Lage der italienische Bank Monte dei Paschi spitzt sich weiter zu. Nachdem das drittgr te Kreditinstitut Italiens das zur Sanierung ben tigte Geld bei Anlegern nicht zusammenbekam, hatte die Regierung in Rom vergangene Woche einen 20 Milliarden Euro schweren Fonds zur Stabilisierung des Bankensektors ins Leben gerufen. Nachdem ein Investor, von dem sich die Bank eine Kapitalspritze erhofft hatte, abgesprungen ist, k nnte nun aber der Staat einspringen. 21.12.2016 Monte dei Paschi droht unter einem Berg fauler Kredite zu kollabieren. (news.financializer.com). As reported in the news.

development efforts: Taiwan immediately accused Beijing of engaging in dollar diplomacy, and taking advantage of the idyllic African nation's financial woes, according to Deutsche Welle. Although its economy is largely based on cocoa exports, its location at the heart of the oil-rich Gulf of Guinea have led to speculation it could become a hub of oil and gas production. Sao Tome has denied reports the decision came after Taipei rejected its plea for a loan. China is willing to support Sao Tome's quest for socio-economic development and efforts to improve livelihoods and well-being to the best of its ability, said Chinese Foreign Minister Wang Yi after a meeting with his Sao Tomean counterpart Urbino Botelho. We have to recognize that China plays an increasingly important role in the world, especially as a partner to promote development and its contributions protecting the interests of developing nations, adding that Sao Tome is a small, island nation, with very friendly people. Botelho partially apologized for his government having established relations with Taiwan in 1997. (news.financializer.com). As reported in the news.

kilometer-long rail: The investment for the venture stands at 44.9 billion yuan 6.46 billion of which private investments account for 51 percent, the statement noted, according to Global Times China. Private investors including Fosun Group, Zhejiang Wanfeng Auto Holding Group and Zhejiang Geely Holding Group will have a franchise period of 30 years, four years for construction and the rest for operation, the Xinhua News Agency reported. The 269-kilometer-long rail that connects Hangzhou, Shaoxing and Taizhou in Zhejiang Province is the first PPP-funded high-speed railway project controlled by private investment, according to a statement posted on the website of China Railway Fifth Survey and Design Institute Group Co on Friday. The project is one of eight demonstration projects of social investment in the railway sector, according to an announcement by the National Development and Reform Commission NDRC in January. The railway line, located in the eastern coastal area, has a good prospect for making a profit, Sun said, noting that the profitability is linked to the population density and income level of the areas it passes through. Part of the reason these projects were shortlisted by the NDRC is that they are high-value investment targets, Sun Zhang, a transport professor at Tongji University, told the Global Times Monday. (news.financializer.com). As reported in the news.

monday tuesday: US stocks ended higher after wavering in a tight range on Monday and Tuesday, as investors digested a speech from Federal Reserve Chair Janet Yellen and Bank of Japan BOJ 's decision to keep its monetary policy unchanged after the conclusion of its two-day policy meeting, according to Global Times China. Yellen said at a University of Baltimore commencement ceremony Monday that the US had the strongest jobs market in nearly a decade, and that there were indications wage growth was picking up, according to the CNBC. While maintaining its negative 0.1 percent interest rate on some bank reserves, the BOJ also opted to leave its 10-year Japanese government bond JGB yield target at about zero, while annual holdings were kept at a rise of about 80 trillion yen 682 billion US dollars . Following the policy meeting and opting to hold pat on any new policy changes, the central bank also upgraded its economic assessment saying a moderate recovery trend has continued while exports have picked up. For the holiday-shortened week, the Dow rose 0.5 percent, notching gains for a seventh straight week, and the S&P 500 increased 0.3 percent, while the Nasdaq moved up 0.5 percent. Japan's economy has continued its moderate recovery trend. In this situation, exports have picked up, the BOJ said in a statement on Tuesday. Overseas economies have continued to grow at a moderate pace, although emerging economies remain sluggish in part. (news.financializer.com). As reported in the news.

plant toxins: Author Gustavo Duncan Duncan teaches political science at the private EAFIT University in Medellin, according to Deutsche Welle. The face of a young Pablo Escobar stares out from one of the books lining the shelves of his living room. I assume that this year's coca harvest will be the biggest of all time. Duncan may well be right about the harvest. One reason for this was that, as part of the peace negotiations with the FARC, the government refrained from the aerial spraying of coca fields with plant toxins. According to the United Nations, the area of cultivation of coca plants in Colombia doubled between 2013 and 2015. (news.financializer.com). As reported in the news.