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

fall percent: Beijing now only allows the tightly controlled yuan to rise or fall 2 percent on either side of the daily fix by the central bank to prevent excessive volatility, according to Deutsche Welle. Imponderables galore China's currency has log been under pressure over uncertainty over the health of the world's second-largest economy as it shifts from a policy of ultra-expensive investments to an economy relying a lot more on strong domestic consumption. The 0.92-percent hike marked the strongest daily increase since July 2005, and with it the biggest one-day upward move since the yuan was revalued and taken off a fixed dollar peg in the same year. There have also been a lot of worries over increased capital outflows and the sharp rise of the dollar following Donald Trump's election victory and anticipation of additional US interest rate hikes in the months ahead. Such a measure will automatically diminish the role of the greenback. In another, but closely related move to stabilize the national currency, China announced last week it would almost double the number of foreign currencies it used to determine the official value of the yuan. (news.financializer.com). As reported in the news.

india: India's fiscal year runs from April 1 to March 31, according to Deutsche Welle. The expected drop is attributed to Indian Prime Minister Narendra Modi's demonetization move on November 8. India's economy grew by 7.2 percent in the 2014-2015 fiscal year, and 7.6 percent in 2015-2016. Modi announced the 500 and 1,000 rupee notes about 7 and 15, or 7 and 14 euros, respectively would no longer be legal tender. The estimate is primarily based on data available through October, which means it does not likely show the full impact of demonetization. His move, which was intended to fight tax fraud and corruption, wiped out 86 percent of India's currency and caused disruption for most Indians, who earn and spend in cash. (news.financializer.com). As reported in the news.

nikkei stock: Korea's Kospi SEU, 0.35% gained 1.1%, and Hong Kong's Hang Seng Index HSI, 0.21% rose 2.3% for the week, according to Market Watch. This was in marked contrast to the first week of 2016, when the Shanghai market dropped 6.9% on the first day of trading, triggering circuit breakers. Japan's Nikkei Stock Average NIK, -0.34% ended up 1.8% for the week, while Australia's S&P/ASX 200 XJO, 0.04% and the Shanghai Composite SHCOMP, -0.35% advanced 1.6% in the same period. This kicked off a selloff in U.S. and European stocks with the Dow Jones Industrial Average losing as much as 467 points. A steep yuan devaluation and weak economic numbers back then had precipitated a global equity selloff, he said. This time around, there is less of a risk of a hard economic landing in China, said Frank Benzimra, head of equity strategy for Asia at Soci t G n rale. (news.financializer.com). As reported in the news.

state council: More sectors, including those previously deemed sensitive, will be open to foreign investment, he said, saying a slew of soon-to-be-released pro-investment measures will be the latest boost to foreign investors' fortunes, according to Global Times China. The measures, approved by the State Council on Dec. 28, 2016, aim to ensure equal treatment for foreign investors and ease restrictions, while opening accounting and auditing, architecture design and rating services to foreign investment for the first time. The world's second largest economy expects 10 trillion US dollars worth of domestic demand in the next five years, as it maintains a 6.5 percent growth rate, Wang said at a news briefing. Foreign investors are now even more well-positioned to cash in on China's steady economic growth and robust retail sales, the vice minister said. That was a 10.8 percent year-on-year increase, he added, as he dismissed concerns of waning investment returns in China. Major overseas businesses have generated 1.5 trillion yuan 216.7 billion US dollars in profits in the first 11 months of 2016 on the Chinese mainland, he said, citing data from the National Bureau of Statistics. (news.financializer.com). As reported in the news.

term future: The team's participation will depend on the outcome of the administration process and any related negotiations with interested parties in what is a very limited window of opportunity, a statement issued by one of the joint administrators, Geoff Rowley, said, according to Deutsche Welle. During recent months, the senior management team of JRSL has worked tirelessly to bring new investment to the team to secure its long term future, but regrettably has been unable to do so within the time available, Rowley added. JRSL which operates Formula One team Manor Racing - said on Friday that new investors would have to be found in a very short period of time if the team is to compete in the 2017 season. Therefore, they have been left with no alternative but to place JRSL into administration. Manor have a history of financial trouble. He also noted that the company had paid all of its 212 staff at their headquarters in the English town of Banbury through the end of last year and that no workers had been laid off. (news.financializer.com). As reported in the news.

democrat party: Romanian president rejects left's candidate for prime minister Romanian President Klaus Iohannis has rejected the leftist Social Democrat Party's PSD proposal to name Sevil Shhaideh as prime minister-designate, according to Deutsche Welle. She would have been the country's first female and Muslim premier. 27.12.2016 Romanian left return to power in triumphant comebackA year after leaving office in disgrace, the Social Democrats have scored a victory in parliamentary elections. But the brain drain has been a brain gain for Germany and other European nations. With no clear candidate for prime minister, however, political uncertainty may continue in Bucharest. 11.12.2016 Romania's parliament on Wednesday approved a left-leaning government led by the Social Democratic Party's PSD Sorin Grindeanu, effectively ending a year-long political crisis. Ahead of the vote, Grindeanu vowed to raise the minimum wage, build highways and discourage Romanians from emigrating, saying he wants a country where people have the freedoms and rights that the vast majority of European citizens have. The legislature approved the government by 295 votes to 133 against, according to an official count. (news.financializer.com). As reported in the news.

inflation rate: December's consumer price data provided good news for the European Central Bank, which had struggled to push inflation back up toward its own target of an annual inflation rate of just below 2 percent, according to Deutsche Welle. Not yet there Under the current president of the ECB, Mario Draghi, the central bank has launched a series of monetary stimulus measures in the past few years aimed at fueling growth and heading off the threat of the eurozone stumbling into a period of deflation. The European Statistics Office, Eurostat, said Wednesday inflation now stood at its highest rate since September 2013, when it was also 1.1 percent. Watch video 01 37ShareECB reaches for the big guns 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 http //dw/p/1IBJlECB reaches for the big guns March 2016 Some economists were quick Wednesday to rule out an early end to the ECB's loose monetary policy, which has included cutting the bank's refinancing rate to zero and launching a controversial bond-buying program. He pointed to the eurozone's core inflation rate, which explicitly excluded volatile items such as energy and food. Commerzbank economist Christoph Weil emphasized that December's inflation pickup was first and foremost attributable to the recent rise in energy prices. (news.financializer.com). As reported in the news.

officials worries: The offshore yuan against the dollar increased 0.99 percent to around 6.8151 as of 11 pm on the same day, according to Global Times China. The US Federal Reserve Board Fed officials' worries that US President-elect Donald Trump's economic stimulus plan may impact sustainable development of the US economy weakened the dollar, relieving external depreciation pressure on the yuan, said Liu Jian, a senior research fellow at Bank of Communications. The onshore yuan finished 668 points higher at 6.8817 against the dollar on Thursday, recording the largest daily growth in nearly 11 months. Fed officials are worried that Trump's stimulus plan will bring great uncertainty to the US economy, wallstreetcn reported on Thursday, citing minutes of the Federal Open Market Committee FMOC . The members of the FOMC argued that the upcoming fiscal policy is uncertain because expansive fiscal policy may lead to a currency policy tighter than expected, the report said. The People's Bank of China PBC set the central parity rate of the onshore yuan against the dollar at 6.9307 yuan on Thursday, 219 points higher than the previous day. Chinese financial regulators acted proactively to regulate the yuan. (news.financializer.com). As reported in the news.

points: Investors' attention was squarely on the Chinese currency, which rebounded sharply against the US dollar on the offshore market, Reuters reported, according to Global Times China. The benchmark Shanghai Composite Index inched up 0.21 percent to 3,165.41 points, while the Shenzhen Component Index finished 0.13 percent lower at 10,371.47 points. The blue-chip CSI 300 index, which tracks the 300 biggest companies traded in Shanghai and Shenzhen, slipped 0.02 percent to 3,367.79 points. The Chi Next Index, which tracks China's NASDAQ-style board for high-tech and emerging start-ups, declined 0.38 percent to 1,983.97 points. Sectors were mixed. A total of 450 billion yuan 65.24 billion in shares changed hands on the Shanghai and Shenzhen exchanges on Thursday. (news.financializer.com). As reported in the news.

securities fraud: However, in a 41-page ruling, US District Judge Charles Breyer denied the claims, according to Deutsche Welle. The judge further rejected a request by VW brand chief Herbert Diess to have proposed securities fraud lawsuits also tossed out. Volkswagen had requested to have an investor lawsuit in California dismissed, arguing that German courts were the proper place to handle cases relating to the Dieselgate emissions scandal. In his ruling, Breyer said that because the United States has an interest in protecting domestic investors against securities fraud, the lawsuits should go ahead in an American court. The lawsuits assert that VW's market capitalization fell 63 billion 60 billion euros after reports broke in September 2015 that the car giant had cheated on its emissions exhaust tests. Investors suing VW are mainly US municipal pension funds that had invested in the carmaker through American Depositary Receipts, a form of equity ownership in non-US companies that represents the company's foreign shares. (news.financializer.com). As reported in the news.

policy: The gains came after minutes from the central bank's Dec. 13-14 meeting out Wednesday showed Fed officials are grappling with considerable uncertainty about the possible impact on the U.S. economy of President-elect Donald Trump's fiscal stimulus plans, according to Market Watch. Investors appear to be pulling back on their hopes for a more aggressive pace of rate hikes after Fed policy makers pointed to a number of risks that, if realized, might call for a different path of policy than the currently expected, according to the minutes. Gold for February delivery GCG7, -0.71% gained 16, or 1.4%, to settle at 1,181.30 an ounce its highest settlement since Nov. 29, according to Fact Set data. Like many of us, the Fed has no clear idea yet of what exactly is going to be implemented and to what extent it will impact economic growth, employment and inflation, said FXTM Chief Market Strategist Hussein Sayed, in an emailed note. It's obvious that the increase of expected interest-rate hikes in 2017 from two to three was largely based on the unknown.' Hussein Sayed, FXTM Higher interest rates can be a negative for gold, which tends to benefit from looser monetary policy. However, it has become obvious that the increase of expected interest-rate hikes in 2017 from two to three was largely based on the unknown. (news.financializer.com). As reported in the news.

recession: But how does he stack up versus recent presidents Let's go to the numbers, according to Market Watch. The economy has added more than 11 million jobs since Obama took office near the end of the 2007-2009 recession, the worst downturn since the 1930s. President Barack Obama is leaving behind an economy much better off than the one he inherited. That's pushed the unemployment down to a fresh low of 4.6% from a peak of 10% in the wake of the Great Recession. Caption outside of wrapper for normal article images Worker pay is also rising after years of meager gains, spawning more complaints among businesses about a short of good help for hire. More data on that is due on Friday from the Labor Department. (news.financializer.com). As reported in the news.

record levels: Indices are already pricing in record levels of volatility as 2017 begins, and investors are specifically concerned about geopolitical developments, according to Market Watch. Go ahead and count Elon Musk on that list of potential risks. Commodity market black swan events come in many forms, and the market may take years or an instant to price them in, the analysts wrote. The analysts say that the timely delivery of Tesla's TSLA, 1.00% Model 3 could shake up the energy sector. But, as you can see, that is just one of 13 black swans mentioned. Markets have a tendency to price in future developments and this development or a battery technology breakthrough that pushes prices far below current levels could turn the tide on how the market perceives EVs' medium-term effect on oil demand, the report said. (news.financializer.com). As reported in the news.

shadow finance: Margin trading pumped up China's stock market rally in 2015, and unwinding those leveraged bets amplified the crash, according to Global Times China. Now it looks like the 7 trillion bond market may be facing a similar, but perhaps bigger and murkier problem, stoked by shadow finance. First a US rate hike, then a squeeze on short-term lending that dried up fixed-income liquidity, and finally a brokerage scandal which fuelled fears about wobbly leverage underpinning China's bond market rally. Mid-sized firm Sealand Securities spotlighted those shadows when it aggravated a bond market sell-off in late December. The agreements in question are similar to formal bond repurchase agreement contracts, commonly known as repos. The broker prompted a panic when it said it would not honor contracts to buy back 2.4 billion of bonds from over 20 counterparties because the agreements were forged. (news.financializer.com). As reported in the news.

compatriot hulk: But last week, Carlos Tevez's reported 84-million-euro transfer deal dwarfed all previous signings, according to Deutsche Welle. As a result of the deal, the 32-year-old Argentine, a former striker at Manchester United, Manchester City, Juventus and most-recently Boca Juniors, will become the highest-paid footballer in the world. It was one record transfer after another, as Brazilian midfielder Alex Teixeria joined CSL club Jiangsu Suning for 50 million euros 52.2 million followed by compatriot Hulk, who signed a deal with Shangahi's top club SIPG for 55.8 million euros. Tevez's two-year contract with Shanghai Shenhua will see him earn 38 million euros per season, according to media reports. Oscar received a hero's welcome when he landed in Shanghai on January 2 as part of his 60-million-euro signing, which topped the Asian transfer record set by Hulk's arrival just six months earlier. Tevez will reportedly earn 38 million euros per season The list doesn't end here - Brazilian star Oscar joined Shanghai SIPG from Premier League side Chelsea, while other recent arrivals in China include Italy striker Graziano Pelle, Argentine Ezequiel Lavezzi and Colombia forward Jackson Martinez. (news.financializer.com). As reported in the news.

consumer-discretionary sector: The finish was just shy of the S&P 500's closing record of 2,271.72 set Dec. 13, according to Market Watch. Gains were broad-based, with nine of the 11 main sectors ending the session in the green. The S&P 500 index SPX, -0.08% closed up 12.92 points, or 0.6%, to 2,270.75, led by gains in the consumer-discretionary sector, which includes car makers, and the materials sector. The Dow Jones Industrial Average DJIA, -0.21% rose 60.40 points, or 0.3%, to close at 19,942.16, led by gains in Nike Inc.NKE, -0.02% and American Express Co.AXP, -1.23% after coming within 44 points of the psychologically significant 20,000 level. The Fed said interest-rate hikes may come at a faster-than-expected pace, according to minutes from the Federal Open Market Committee's Dec. 13-14 meeting. Meanwhile, the Nasdaq Composite Index COMP, 0.20% closed up 47.92 points, or 0.9%, at 5,477.00, as biotech stocks surged, with the iShares Nasdaq Biotechnology ETF IBB, 0.31% rising 2.6%. The Russell 2000 index RUT, -1.15% finished up 22.46 points, or 1.6%, at 1,387.95, just shy of its record finish of 1,388.07 set on Dec. 9. (news.financializer.com). As reported in the news.

currency index: The minutes showed some conflict over the central bank's pace of raising interest rates at the meeting, when the Fed raised interest rates for only the second time in the past decade, according to Market Watch. The Fed has said the pace of hikes would be gradual, though the minutes indicated that many Fed officials thought a measured pace of increases was under threat. While the dollar had already been weaker against its major rivals, it extended its decline following the release of minutes from the Fed's December meeting, with a key currency index dropping to its lows of the session. The officials pointed to a number of risks that, if realized, might call for a different path of policy than the currently expected, the minutes read. The Fed has penciled in three rate hikes in 2017, according to a plot of Fed members' forecasts for rates. Although there weren't big surprises in the minutes, some investors may have gotten ahead of themselves in terms of their predictions for the pace of future rate increases, said Colin Cieszynski, chief market strategist at CMC Markets. (news.financializer.com). As reported in the news.

indices: Thirty-nine of the 44 fund indices increased during the calendar year, including 10 indices that increased by 10% or more, according to Market Watch. Highlights from Morningstar's 2016 year-end preliminary performance report include -- Canadian stocks had their best calendar-year performance since 2009, with the S&P/TSX Composite Index posting a total return of 21.1%. The five Morningstar Canada Fund Indices that track domestic equity fund categories all ended the year among the best performers, with increases ranging from 11.8% for the Morningstar Canadian Focused Equity Fund Index to 17.9% for the Morningstar Canadian Dividend & Income Equity Fund Index. MORN, -0.17% today released preliminary 2016 year-end performance data for its 44 Morningstar Canada Fund Indices, which measure the aggregate returns of funds in various standard categories. The fund index that tracks the purely domestic Canadian Equity category rose 17.7%, underperforming the benchmark. -- Canada's three largest sectors--financial services, energy, and basic materials--all contributed positively with total returns of 24.2%, 39.6%, and 41.2%, respectively. This was most notable in the European Equity category, where funds collectively lost 5.5% despite strong market performances in France, Germany, and the United Kingdom. The best-performing fund indices overall were those that track four sector-specific fund categories Precious Metals Equity, Natural Resources Equity, Energy Equity, and Financial Services Equity, up 54.0%, 41.0%, 36.1%, and 24.3%, respectively. -- Currency effects detracted from performance for most foreign-equity fund categories during 2016 as the Canadian dollar appreciated against many of the world's major currencies. (news.financializer.com). As reported in the news.

james messina: Die von Julian Assange gegr ndete Gruppe ver ffentlichte zudem auf Twitter eine E-Mail, die der damalige stellvertretende Stabschef des nun scheidenden US-Pr sidenten Barack Obama, James Messina, im Jahr 2009 verschickt haben soll, according to Deutsche Welle. Darin ist von einer verlorenen Festplatte mit Daten der Regierung des fr heren Pr sidenten Bill Clinton die Rede. Die umgerechnet rund 19.155 Euro gebe es als Belohnung f r Informationen, die zur Festnahme oder Blo stellung irgendeines Mitarbeiters der Obama-Regierung f hren, der bedeutende Unterlagen zerst rt twitterte Wikileaks in der Nacht zum Mittwoch. Dazu forderte Wikileaks Systemadministratoren auf Lasst das Wei e Haus nicht noch einmal US-Geschichte zerst ren! Jetzt kopieren, dann bei Gelegenheit Wiki Leaks schicken. Obama sagte, wenn eine ausl ndische Regierung versuche, den Wahlkampf zu manipulieren, m ssten die USA handeln. 16.12.2016 Obama ordnet Untersuchung von Hackerangriffen an Vor allem die unterlegene Clinton war im Wahlkampf Ziel von Cyberattacken. Die Redaktion empfiehlt Obama droht russischen Hackern mit Vergeltung Der scheidende US-Pr sident Obama will die Cyberattacken russischer Hacker nicht tatenlos hinnehmen. (news.financializer.com). As reported in the news.

manufacturing index: On Friday, the key market gauge fell 30.77 points, according to The Japan Times. The market was closed on Monday and Tuesday for New Year holidays. The 225-issue Nikkei average jumped 479.79 points, or 2.51 percent, to end at 19,594.16, its highest finish since Dec. 7, 2015. The Topix index of all first-section issues closed up 35.87 points, or 2.36 percent, at 1,554.48, after rising 0.22 the previous trading day. Purchases by foreign investors who returned to the Tokyo market after Christmas holidays also helped the surge in the Nikkei average, brokers said. Stocks attracted brisk purchases on Wednesday after New York equities rebounded overnight, reflecting a better-than-expected reading of the U.S. Institute for Supply Management's manufacturing index for December, released Tuesday. (news.financializer.com). As reported in the news.

policy mix: To accelerate Abenomics and have the economy steadily grow is the mission given for us, Abe said, according to The Japan Times. And the biggest economic measure will be early enactment of the next fiscal year's budget. This year, too, the economy comes first, Abe said during the year's first news conference in Ise, Mie Prefecture, after visiting Ise Shrine in the city. I want to concentrate on this for now, Abe said during the nationally televised news conference. Abe also said he will further promote various social reforms to give more employment opportunities for the potential workforce, including women, the elderly and the disabled. Specifically, the prime minister said he will continue promoting his Abenomics economic policy mix a combination of ultraloose monetary policy, aggressive fiscal spending and structural reforms to raise Japan's long-term growth potential. (news.financializer.com). As reported in the news.

wall street: If confirmed by the Senate, his responsibilities will include enforcing the scores of rules already written by the agency under the 2010 law that reshaped financial regulation after the 2008-09 crisis, according to The Japan Times. The law, known as Dodd-Frank, has long been scorned by Republicans and is high on Trump's target list. Trump announced his nomination of Jay Clayton, a partner in the law firm Sullivan and Cromwell, as chairman of the independent agency that oversees Wall Street and the financial markets. Clayton has worked on many of the securities deals that the SEC regulates and has represented Wall Street powerhouses including Goldman Sachs and Barclays. His nominee for Treasury secretary, Steven Mnuchin, is a former Goldman executive. He is the latest Trump choice with Wall Street connections. (news.financializer.com). As reported in the news.

hair: Chisense is a big fan of Brazilian hair, according to Deutsche Welle. But it doesn't come cheap. Zambian women love these things, customer Chilufya Chisense tells DW. We have got stubborn hair, when you put on those things, it actually becomes easier to maintain, unlike using your own hair. Brazilian hair extensions can cost around 5,000 Zambian kwacha 500, 480 euros . It is a lot of money to have wrapped around your head. Zambian university student Kaniki Pirscilla told DW she spent about 300 Zambian kwacha maintaining her weave. And it's not just the initial outlay than can be a burden on a slender budget. (news.financializer.com). As reported in the news.

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.