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

earnings: How credit scores predict what you will buy next 2 22 For decades, FICO has used big data and mathematical algorithms to calculate people's three-digit credit scores, according to Market Watch. Now it's using the same technology to predict whether a consumer's likely to buy a product in-store or click on a link online. Except, maybe it really is different this time . . . and maybe not. A reasonable take on the U.S. equity market is that the market is definitely pricey, but perhaps for good reason. This is the normal ratio based on trailing twelve month's TTM earnings, not the usually lower ratio based on an estimate of forward or forecasted future 12 month's earnings. The very long run average of the S&P 500 Price to Earnings PE ratio since 1900 is approximately 15.8, and the ratio since 1946 the post-World War II period is 17.3, so let's call a normal PE ratio about 16.5. (news.financializer.com). As reported in the news.

etf issuers: ETFs are a basket of stocks or other assets traded by individual investors and institutions, according to Global Times China. Fund managers from Black Rock to Vanguard and Schwab offer index ETFs that try to track, not beat, the market. The total, which is preliminary, compares with 348 billion in 2015 and includes a record 286 billion haul in the US, home to the funds' biggest market. Those low fees along with other cost savings and conveniences have helped the more than 3 trillion ETF business take assets from rival financial products, including actively managed funds that attempt to beat the market but may fall short of that goal. ETF issuers were also able to draw investors into smart beta products that often attempt to beat the markets, but do so based on a set of rules governing how they invest, rather than a portfolio manager making those calls. US-based active stock funds recorded 288 billion in withdrawals in 2016, the largest on record, according to preliminary Thomson Reuters Lipper data through November. (news.financializer.com). As reported in the news.

firm productivity: What we found was surprising, according to Market Watch. Despite the widespread belief that firm productivity is a key driver of stock market returns, our results indicate that fluctuations in productivity play only a small role. With my colleagues, Martin Lettau of the U.C. Berkeley Haas School of Business and Sydney Ludvigson of New York University, I set out to investigate what makes stocks move over time. Far more influential over long periods is the economic redistribution between workers and shareholders meaning how a company's profits are divided between employees and investors. Each firm that is represented in the stock market index produces a stream of revenues. Our first step in this research was to consider which factors might be responsible for movement in the stock market in aggregate. (news.financializer.com). As reported in the news.

german minister: A spokesman for Merkel said It's true that a Davos trip was being considered, but we never confirmed it, so this is not a cancellation, according to Deutsche Welle. DW recommends Berlin attack Was there a terror weak spot Every day, German terrorism prevention center authorities analyze potential threats. We regret the decision but the German federal government will, as in the past, be represented by a high-level delegation, WEF organizers said Monday. Yet the Christmas market attack in Berlin still happened. Conspicuously, she didn't mention Donald Trump by name. 23.11.2016 German minister reacts to Trump's comments on Merkel's refugee policyA German government minister has criticized Donald Trump for his remarks on Chancellor Angela Merkel's refugee policy. The search for mistakes and those responsible for them is now underway. 30.12.2016 Merkel defends policies, stays silent on populists in Bundestag speech In her first major speech since declaring her intention to seek a fourth term, German Chancellor Angela Merkel advocated for stability and gradual progress. (news.financializer.com). As reported in the news.

government officials: The government plans to submit a bill to implement the reform to the ordinary Diet session expected to be convened later this month, according to The Japan Times. The reform is aimed at giving shareholders more leeway to analyze corporate earnings reports and stimulate dialogue between publicly owned companies and their shareholders. Under the ruling coalition's tax system reform outline for the fiscal year beginning April 1, corporate tax declarations can be filed within six months of the closing of annual accounts, against the current three months. Government officials said more open management that reflects shareholder opinions is likely to win greater trust for companies, more investor participation and higher stock prices. To meet the deadline for corporate tax declarations, many call shareholders meetings around June 20 to win approval for earnings-related documents and file tax declarations by the end of the month. Around 70 percent of Japanese companies close their annual books at the end of March. (news.financializer.com). As reported in the news.

ipo market: China's IPO market was steady in 2016 compared with the previous year with mild improvements, according to Global Times China. In 2016, the number of newly listed companies reached 227 on the Shanghai and Shenzhen bourses, slightly up from 219 in 2015, according to a report sent by PwC to the Global Times on Tuesday. We hold a cautious but optimistic attitude toward the A-share market's performance in general this year, Shen Jie, partner of capital markets and accounting advisory services at PwC, told the Global Times Tuesday. According to the report, funds amounting to about 150 billion yuan 21.6 billion were raised in new listings on the two bourses in 2016. Frank Lyn, markets leader of PwC China, said that the second half of 2016 saw stable market operations and accelerated IPO approvals, which were expected to keep up this year. Companies from the industrial products, retail, consumer goods and services sectors comprised the majority of those being listed on the main board of the Shanghai Stock Exchange and Shenzhen SME board in 2016, according to data from the PwC report. (news.financializer.com). As reported in the news.

meeting place: But the eco-friendly building has faced criticism for its high cost and delays at a time when cash-strapped EU member states are wrestling with spending cuts and Brussels is trying to cut waste, according to Deutsche Welle. The Belgian architect, Philippe Samyn, insists however that his building symbolises all that is best about a union formed in the aftermath of World War II to unify the continent. At its heart is a huge room decked out in psychedelic rainbow carpets and ceiling tiles where European Union leaders will hold their summit meetings on the multiple crises that beset the bloc. I wanted to make a a joyful meeting place where people entering with a lot of problems can get some breathing space, the bow-tie wearing Samyn told reporters in the giant 11-storey atrium. I always have a piece of paper by my bed, which bothers my wife, and one night I just woke up and dreamed of this lamp shape, and it has stayed ever since then, the architect added. He said the symbolism of the lamp is fundamental to the story adding that he had come up with the idea in the middle of the night after puzzling over how to put a friendly circular summit room in a square building. (news.financializer.com). As reported in the news.

points: The blue-chip index had gained as much as 176 points at one point during the session, according to Market Watch. Nike Inc.NKE, 2.10% and Verizon Communications Inc.VZ, -0.11% were among the biggest gainers while Travelers Cos. The Dow DJIA, 0.30% rose 119.16 points, or 0.6%, to close at 19,881.76. Inc. MCD, -0.12% were notable laggards. TRV, -0.54% and McDonald's Corp. (news.financializer.com). As reported in the news.

railway network: But experts suggested that the reform should be implemented at the group level to boost investors' enthusiasm, according to Global Times China. CRC will explore mixed-ownership reform and establish market-based operations by restructuring some assets and attracting private capital, domestic news portal cnstock reported Tuesday. Photo CFP Debt-ridden China Railway Corp CRC plans to carry out mixed-ownership reform in 2017, according to media reports on Tuesday, and experts said this move will increase the company's operating efficiency and improve its management structure. A major task this year is to boost the operating efficiency of China's high-speed railway network, the State-owned company's General Manager Lu Dongfu said during a CRC work conference in Beijing, the report said. The reform will help break SOEs' dominance, improve their management structure and improve operating efficiency. Mixed ownership is expected to be something State-owned enterprises SOEs can employ to promote operating efficiency, establish closer connections with shareholders and attract private capital, Wei Jigang, a research fellow with the Development Research Center of the State Council, told the Global Times Tuesday. (news.financializer.com). As reported in the news.

rock bottom: The recent influx of foreign tourists, largely helped by the weakening yen, will likely continue to support the economy in the coming years by propping up retail sales and encouraging investment to capitalize on the tourism boom, while the Bank of Japan's monetary stimulus will keep borrowing costs at rock bottom, according to The Japan Times. However, property sales in Tokyo, a barometer of the underlying tone of the economy, are showing signs of slowing as major developers are delaying projects due to a labor shortage, which raises personnel costs, and shrinking demand as a result of weak wage growth. But because the economy still faces uncertainty, all that glitters may not be gold. Foreign tourists have been flocking to Japan in recent years, topping 20 million for the first 10 months of 2016 compared with 19.74 million the previous year, which was itself a record, according to the Japan Tourism Agency. But the tourism boom also reflects the benefits of the yen's fall. The figures followed government efforts, including easing visa rules and expanding tax exemption for shopping by foreign visitors. (news.financializer.com). As reported in the news.

transfer money: The MUFG coins will, for example, enable users to easily split drinking bills using their smartphones and quickly transfer money at lower rates, according to The Japan Times. Users of the virtual currency will be able to open bank accounts called wallets on their smartphones. MUFG, Japan's biggest lender, will first issue MUFG coins to employees of its group companies for domestic remittances, eventually extending the service to attract younger tech-savvy customers, the sources said Tuesday. MUFG and other Japanese banks are trying to catch up with European and U.S. rivals in harnessing fintech, the combination of financial services and information technology. Last May, the government revised a law to regulate bitcoin and other virtual currencies to prevent their use in crimes such as terrorism and money laundering. MUFG's banking unit, Bank of Tokyo-Mitsubishi UFJ, formed a tie-up last year with Coinbase, the world's largest bitcoin exchange operator, while Mizuho Financial Group Inc. has started a virtual currency service on a trial basis. (news.financializer.com). As reported in the news.

acquisition marks: The Karachi-based PSX is currently the only stock exchange in Pakistan which was created in January 2016 following the merger of the Islamabad, Karachi and Lahore exchanges, according to Global Times China. Back in January 2015, at the start of the corporatization, Pakistan decided that the exchanges would offer no higher than 40 percent of their shares to international investors, no less than 20 percent to the public and the remaining to qualified domestic financial institutions. The three exchanges - China Financial Futures Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange - will take a combined 30 percent, while the remaining 10 percent will be halved between their local partners - Pak-China Investment Company and Habib Bank. The acquisition marks the first time that Chinese exchanges have bought stakes in a foreign bourse. The deal is also likely to boost Pakistan's market with the introduction of Chinese capital, technology, experience and financial products, and ready the Pakistani equity market for the launch of financial derivatives, such as futures and options. It's envisioned that the deal will further strengthen economic and financial cooperation between China and Pakistan. (news.financializer.com). As reported in the news.

bitcoin creation: In 2016, the virtual currency more than doubled in value making it the number one gainer in global currency trading, according to Deutsche Welle. Bitcoin was launched in 2009 as a bit of encrypted software written by someone using the Japanese-sounding name Satoshi Nakamoto. It is now within reach of its historic high of more than 1,200 reached in 2013. Earlier this year secretive Australian entrepreneur Craig Wright said that he was the creator, but some have raised doubts over his claim. Unlike traditional currencies such as the dollar or the euro, which are issued and controlled by a central bank, Bitcoin creation is decentralized. The supply of Bitcoin is limited and it trades in cyberspace. (news.financializer.com). As reported in the news.

currency buyers: The new form, which the Global Times accessed online from the Industrial and Commercial Bank of China, asks foreign currency buyers for detailed information regarding their buying purpose, according to Global Times China. The form listed six areas where buyers are prohibited from doing, including providing false information, lending or borrowing quota for foreign currency swaps, and engaging in money laundering, tax evasions and other illegal activities. The new rules, launched by the State Administration of Foreign Exchange SAFE over the weekend, include a more detailed foreign exchange purchasing application form and a blacklist for illegal foreign exchange transactions, as the government grapples to close loopholes in the domestic foreign exchange purchasing system. SAFE's 50,000 quota per year for buying foreign currency remains unchanged. Impact on property purchases An employee of Global House Buyer, a real estate agent specializing in overseas assets, said that buyers used to accumulate foreign currencies by using the 50,000 quota multiple times. It also specifically said that individual investors can not buy foreign currencies for purchasing real estate abroad or investing in overseas stocks or insurance or other yet open assets. (news.financializer.com). As reported in the news.

d-mark wieder: Eine Weile galt auch parallel die Deutsche Mark hierzulande noch als W hrung, according to Deutsche Welle. Viele gew hnten sich an die neuen Scheine und die gemeinsame W hrung f r Europa. Vor 15 Jahren spuckten die Geldautomaten in Deutschland und in elf weiteren L ndern die ersten Euro-Scheine aus. Andere w nschten sich schon schnell die D-Mark wieder zur ck. ber den Geburtstag eines gro en und umstrittenen W hrungsprojekts. Denn am 20. Wie entwickelt sich der Freihandel Eine Frage, die sich ganz besonders f r das Jahr 2017 stellt. (news.financializer.com). As reported in the news.

employment economists: Full employment, according to Market Watch. Economists, investors and analysts have little agreement on what full employment actually is, making it difficult to determine if the economy has reached that point or what additional steps are needed to get there. More than seven years into the economic expansion, there's a final frontier remaining. Seven and a half years in, it's also thoroughly hackneyed to say that any one economic indicator is more important than others. Friday's report will tell us how many net new jobs were created in December, the first full month of hiring after the election surprise. But after a quiet holiday lull that followed one of the biggest political upsets in recent history, the January 6 nonfarm payrolls report will certainly command attention. (news.financializer.com). As reported in the news.

joseph adinolfi: Other big exchanges such as Bitfinex, Kraken and Coinbsae showed the cryptocurrency topped 1,000 late Sunday, according to a report from Bitcoin, according to Market Watch. Caption outside of wrapper for normal article images The fresh high for Bitcoin is now trading at levels not seen since November 2013. A single Bitcoin BTCUSD was trading at 1,025 Monday morning, according to pricing data from Coin Market Cap. The digital currency rose more than 100% in 2016, and some expect the price could reach as much as 3,000 in 2017. Market Watch's Joseph Adinolfi has noted that analysts have attributed a range of factors to bitcoin's strength, including increased adoption by professional investors and fears of instability surrounding the world's biggest economies. The cryptocurrency looked set to reach 1,000 in the waning days of 2016, after taking out a key level above 800 in early December. (news.financializer.com). As reported in the news.

measures dollar: The ICE Dollar Index DXY, -0.13% rose 0.5% to 102.74, higher than 102.29, seen Friday, according to Market Watch. The dollar gained around 3.5% in 2016, its fourth straight year of advances. Many financial centers remained closed in an extended celebration of the New Year's holiday. The rally has taken the index to levels last seen in 2002. The index was trading at 92.73 late Friday and rose 3% in 2016. The WSJ Dollar index BUXX, -0.20% which measures the dollar against a broader basket of rivals, rose 0.3% to 93.22. (news.financializer.com). As reported in the news.

money scandal: They had been promised huge returns on their capital over a short period of time, but now they're pleading with Ghanaian President John Mahama for a refund of their investments, according to Deutsche Welle. Many people are dead and many are on their sick bed because of this money scandal . It's not easy for us, Mr. Millions of Ghanaians have been denied access to their savings after investing in microfinance companies. President. These schemes were at the center of the presidential election campaign in Ghana. Pay our money to us, because the Bank of Ghana is under you, said businessman Haruna Seidu. (news.financializer.com). As reported in the news.

survey year: Of the 108 companies surveyed between late November and early December, including Toyota Motor Corp. and Sony Corp., 63 said they expect the economy to expand this year, of which 61 expect moderate growth, according to The Japan Times. Forty-one said they expect no growth, while two projected a moderate contraction. That percentage is down from the 90 percent that forecast growth in a similar survey a year ago, as many Japanese companies are concerned by Trump's unpredictability, political inexperience and oft-stated intention to radically overhaul U.S. trade policy, Kyodo said Monday. Asked in a multiple-choice question why they think the economy will expand, 32 companies cited rebounding consumer spending, 23 pointed to stepped-up capital spending and 19 specified an improving U.S. economy. However, 59 companies or just over half said that they have no idea how U.S.-Japan relations may change under the incoming Trump administration, evidence of the major uncertainty engendered by the president-elect's America First stance. The survey shows many Japanese companies envision growth driven by increasing external demand given that Trump has pledged to slash U.S. taxes and boost government spending on infrastructure and public works. (news.financializer.com). As reported in the news.

trading: It is now within reach of its historic high of more than 1,200 reached in 2013, according to The Japan Times. Some analysts believe the rise in bitcoin is due to some investors treating it as a safe-haven, like gold, at a time of global uncertainty. Its value has more than doubled in the last year and it was trading at around 1,024 in afternoon European trading on Monday, after breaking through the 1,000 mark on Sunday. Others believe buying is being driven by speculative demand, with investors anticipating future rises and creating an unsustainable bubble. Earlier this year secretive Australian entrepreneur Craig Wright said that he was the creator, but some have raised doubts over his claim. Bitcoin was launched in 2009 as a bit of encrypted software written by someone using the Japanese-sounding name Satoshi Nakamoto. (news.financializer.com). As reported in the news.

veteran goalkeeper: The pact is the largest commercial deal in the history of Japanese sports, according to The Japan Times. The prize money on offer for the team that wins the 2017 league title increases to a whopping 2 billion, five times what Kashima, whose operating revenue is roughly 4 billion, pulled in for winning the championship this year. The J. League is pumping cash into the top flight in a bid to improve international competitiveness, using funds from a 10-year, 210 billion about 2 billion deal to sell digital online broadcasting rights to British-based Perform Group. I don't know how much of the prize money the club would dish out to the players but the extra cash would certainly make us work harder! Kashima's veteran goalkeeper, Hitoshi Sogahata, told Kyodo News with a laugh after the club completed a league and cup double in the Emperor's Cup final Sunday. But Antlers, who raked in 4 million in prize money for their magical run to the final of the Club World Cup, are investing more heavily than usual in their squad with the aim of reaping the financial rewards in the future. The prize money might not be enough to tempt J. League clubs to start offering the kind of eye-watering amounts of cash being spent on some of the world's leading players in the Chinese Super League. (news.financializer.com). As reported in the news.

yuan depreciation: Shanghai-based Shenwan Hongyuan Securities predicted that listed mainland companies will perform better in 2017 than in previous years, the report said, according to Global Times China. Although many financial intuitions are optimistic about the stock market's prospects in 2017, some experts were still preaching caution due to the uncertainties such as yuan depreciation and the effect of State-owned enterprise reform, according to media reports. Shanghai-based Haitong Securities forecast that Chinese mainland stocks will enter a bull market this year as the government accelerates reforms and industries upgrade, the Xinhua News Agency reported on Monday. Major stock indexes didn't move very much on Friday, the final trading day of 2016. The Shanghai Composite Index added 0.24 percent on Friday to 3,103.64 points, cutting the week's loss to 0.21 percent. The CSI 300 index rose 0.37 percent on Friday, up 0.08 for the week. (news.financializer.com). As reported in the news.

austerity policies: He urged for more support to the people most-affected by the debt crisis as well the refugee- migrant crisis, according to Global Times China. The Greek President called for the replacement of the current austerity policies which lead to dead ends with strategies which can fix fiscal indexes and ensure both sustainable economic development and social cohesion. In 2017 we can and we must regain hope and optimism, Greek President Prokopis Pavlopoulos said in his New Year Eve message. Greek Prime Minister Alexis Tsipras outlined his government's achievements in 2016. We aspire that 2017 will be the year our country will take the great leap forward, the year confidence in the Greek economy and stability will be strengthened, Tsipras said. We stabilized the Greek economy, we entered at last positive growth rates, we reduced unemployment rates by 3 percent... With hard work we exceeded the bailout program's goals, he said. (news.financializer.com). As reported in the news.

air system: This modification continues the integration work to implement the development and delivery of the F-35A Air System to the Republic of Korea under the Foreign Military Sales program, a statement said, according to Global Times China. The work will be carried out in Fort Worth, Texas, and is expected to complete by August 2019. The contract is a modification of a previous 920-million-dollar deal for Lockheed Martin to manufacture 94 various models of F-35s for the United States and its allies. The Foreign Military Sales program allows the Pentagon to facilitate contracts between foreign governments and US arms manufacturers. He has also complained that the new Air Force Ones, built by Boeing at 4 billion dollars each, are too expensive. US President-elect Donald Trump has recently blasted Lockheed Martin for the out of control costs of its F-35s. (news.financializer.com). As reported in the news.

amiridis body: Amiridis' body was found in this burned-out rental car His corpse was found Thursday evening in his burned-out white rental car parked under a highway overpass at Nova Iguacu, 41 kilometers 25 miles north of Rio de Janeiro, according to Deutsche Welle. Amiridis had been declared missing by his wife, Francoise, on Wednesday. Evaristo Pontes Magalhaes, Rio homicide division chief, told a news conference on Friday that Ambassador Kyriakos Amiridis was murdered in a crime of passion. She and the suspected officer were later taken into custody and questioned. The O Globo newspaper had earlier reported that blood was found on a couch inside the Amiridis home in a northern Rio suburb. Magalhaes has alleged that Francoise, 40, and the accused police officer Sergio Moreira, 29, had arranged the murder a few days in advance. (news.financializer.com). As reported in the news.