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

chinese leader: This year's Davos confab overlaps with the Jan. 20 swearing-in ceremony of Donald Trump, who made withdrawal from global elites a hallmark of his presidential campaign, according to The Japan Times. Trump's America first tariffs, walls and unilateralism would seem to make China de facto champion of globalization. The most interesting thing about Xi being the first Chinese leader to join the World Economic Forum is geopolitical timing. Xi's Davos jaunt will punctuate that point, one presaged in currency markets in the closing days of 2016. The change signaled two things. Quietly, but importantly, Beijing downgraded the dollar's role in its trade-weighted foreign exchange basket by four percentage points to 22.4 percent, while boosting the role of the South Korean won and Singapore dollar. (news.financializer.com). As reported in the news.

kostin co: The combo of the big change at the White House on Friday and the fresh info on Brexit today is making investors anxious, says Gary Huxtable from Atlantic Pacific Securities, according to Market Watch. Markets could have handled one event, but the double dose is trouble, he suggests. A landmark Brexit speech and the Davos hootenanny are also helping to wake up anyone who remembered the I have a dream man by sleeping in, as eToro analysts put it. Could flawless earnings calm everyone and extend the Trump rally Ignore the latest quarterly results, as there are five key things to watch instead, says our call of the day. Here is Kostin & Co.'s fab five, as laid out in a Weekly Kickstart note Regulation The Trump administration could change all sorts of rules, and that should help midstream energy companies Goldman likes Williams Cos. Investors should focus less on actual 4Q results and more on management insights on how firms are positioned on five policy issues that will drive 2017 earnings revisions and share prices, say Goldman Sachs strategists, led by David Kostin. (news.financializer.com). As reported in the news.

daniel bosques: Many of the men and women dressed in 18th century attire, drinking colonial rum punch, believe Donald Trump can Make America great again, according to Deutsche Welle. The silent majority weren't so silent anymore, said Daniel Bosques, a part-time park ranger and full-time father of two, of the presidential election. Humphreys was a colonel in the Revolutionary War, George Washington's secretary, and a minister in the first government of the United States. The son of Puerto Rican migrants, he voted for Trump despite the racist overtones of his campaign, in the hope that having a businessman in the White House will stimulate the economy. My wife is a professional. I'm a hard-working citizen. (news.financializer.com). As reported in the news.

davos meeting: The S&P 500 index SPX, 0.18% declined 6.75 points, or 0.3%, to end at 2,267.89, with financials and health-care stocks leading the losses, according to Market Watch. U.S. markets were closed on Monday for Martin Luther King Jr. The Dow Jones Industrial Average DJIA, -0.11% slid 58.96 points, or 0.3%, to close at 19,826.77. Day holiday. For example, the Davos meeting is where a confrontation between globalization and populism is on full display, said Jack Ablin, chief investment officer at BMO Private Bank, referring to the World Economic Forum's annual meeting in the Swiss Alps. There is a lot going on this week, making investors slightly cautious. (news.financializer.com). As reported in the news.

earnings growth: Also see IBM plans to hire 25,000 workers over the next four years IBM IBM, -0.65% may meet fiscal 2016 expectations because of its stronger-than-expected quarterly earnings this year, but Credit Suisse analyst Kulbinder Garcha warned in a note to clients this week that eroding software sales may weigh on its fiscal 2017 guidance, according to Market Watch. We believe that a reset of expectations is looking increasing likely, he said. The company, which has been moving its business to a software-centric model from selling hardware in the past, has surpassed top- and bottom-line expectations every quarter this fiscal year, but earnings growth has been on a downtrend for two-and-a-half years. Here's what to expect Earnings Sell-side analysts surveyed by Fact Set expect IBM to report a profit of 4.88 a share, compared with 4.84 in the year-earlier period. IBM has surpassed the Fact Set consensus estimate for eight straight quarters. Contributors to Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages and buy-side analysts to predict earnings, expect IBM to report 4.93 a share. (news.financializer.com). As reported in the news.

forum: DW recommends Change starts here - millennials at the World Economic Forum Fifty young people - all under the age of 30 - have been invited to this year's World Economic Forum, according to Deutsche Welle. They want to make an impact and be disruptive. 16.01.2017 Davos 2017 The great uncertainty Once again, the global elite is meeting at the World Economic Forum in Davos. But he said it was wrong to blame economic globalization. But the climate is different this time as US President-elect Donald Trump dominates the meeting - without even being there. 16.01.2017 Oxfam highlights world inequality ahead of WEF Davos summit The world's eight richest businessmen own as much wealth as 3.6 billion people - half the world's population - combined, according to an Oxfam report. Similarly, the 2007/8 financial crisis was caused by the excessive pursuit of profits and a lack of economic regulations, he said. Inequality is more shocking than ever before, the aid group says. 16.01.2017 The Chinese leader told the World Economic Forum in Davos that the migrant crisis had been caused by war, conflict and regional turbulence, not globalization. (news.financializer.com). As reported in the news.

nikkei briefly: On Monday, the key market gauge lost 192.04 points, according to The Japan Times. The Topix index of all first-section issues was down 21.54 points, or 1.41 percent, at 1,509.10, after falling 14.25 points the previous day. The 225-issue Nikkei tumbled 281.71 points, or 1.48 percent, to end at 18,813.53. Stocks met with heavy selling early in the morning session as the dollar dropped below 114, sending the Nikkei average below 19,000 soon after the opening. But the index accelerated its downswing toward the close in line with the yen's further rise and amid a wait-and-see mood ahead of a closely watched speech by British Prime Minister Theresa May later on Tuesday, brokers said. The Nikkei briefly trimmed its loss later in the morning thanks to a bout of buybacks. (news.financializer.com). As reported in the news.

percent: Sentiment was also dampened by a Reuters report that China would lower its 2017 economic growth target to around 6.5 percent from 6.5-7 percent in 2016, indicating that China would tolerate a more moderate pace of growth this year and making large-scale fiscal stimulus less likely, according to Global Times China. However, both markets went up in the afternoon, with some individual stocks outperforming the markets. Both the Shanghai and Shenzhen stock markets had kicked off lower, as small caps skidded for the ninth consecutive session, rattling investor confidence and reviving memories of the broader market crash in mid-2015. Leshi Internet Information and Technology Corp climbed by the 10 percent daily limit to close at 38.94 yuan 5.64 . The blue-chip CSI 300 index inched up 0.21 percent to 3,326.36 points on Tuesday. ChiNext, the country's start-up board, jumped 2.02 percent to 1,867.87 points. The benchmark Shanghai Composite Index added 0.17 percent to close at 3,108.77 points, while the Shenzhen Component Index rose 1.17 percent to 9,826.79 points. (news.financializer.com). As reported in the news.

supply chain: Only by seeking greater market liberalization can India sustain economic momentum and prepare to emerge as a regional power, according to Global Times China. It is time for New Delhi to push forward the RCEP and open India to the outside world as Chinese leaders did decades ago when China joined the WTO. The expected demise of the Trans-Pacific Partnership may not boost the prospect of concluding the RCEP and quarreling among bargaining participants, especially India who is reluctant to open up its markets, may complicate the RCEP's fate, as a recent article by CNBC suggested. The free trade agreement could not only boost India's economic stamina but could also extend the supply chain in Asia and instill new vigor in regional growth. The 16-member free trade pact, which links the Association of Southeast Asian nations with China, Japan, South Korea, Australia, New Zealand and India, would create one of the world's largest trading blocs accounting for 40 percent of world trade with a combined GDP of 23 trillion. Its implications on the regional and world economy remain undoubted. The pact, which covers diverse areas such as goods, services and investment, could extend the regional supply chain and streamline multiple Asian trade agreements if successfully inked. (news.financializer.com). As reported in the news.

trade deal: What I am proposing cannot mean membership of the single market, May said during a highly-anticipated speech at London's Lancaster House, according to Global Times China. She added that Britain would seek a trade deal giving the greatest possible access to the market on its departure. Brexit must mean control of the number of people coming from Europe, and that is what we will deliver. The prime minister also announced that any divorce deal with the remaining EU members must be approved by votes in both chambers of Britain's parliament. May has promised to trigger Article 50 by the end of March, and said that she believed a final settlement and trade deal could be simultaneously negotiated within the timeframe. Britain has two years to negotiate a break-up deal once May triggers Article 50 of the Lisbon Treaty, officially declaring the country's intention to quit, or face leaving with no agreement. (news.financializer.com). As reported in the news.

year absence: British American Tobacco said it would pay 29.444 in cash and 0.5260 BAT shares for each Reynolds share, marking a 26-percent premium over the price of the stock on October 20, 2016, the day before the first offer was made, according to Deutsche Welle. Shareholders in mind The deal means BAT will be able to return to the lucrative, but highly regulated US market after a 12-year absence, making it the only tobacco giant with a leading presence in American and international markets. The move came after BAT increased its offer by more than 2 billion for the 57.8 percent of the company it did not already own. Watch video 01 33Share Tighter EU rules for tobacco packaging 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 EU rules for tobacco packaging BAT CEO Nicandro Durante said bringing the two companies together would drive sustained profit growth and returns for shareholders. It will create a stronger, global tobacco and next-generation-products business with direct access for our products across the most attractive markets in the world, Durante added. hg/jd Reuters, AFP (news.financializer.com). As reported in the news.

csi index: The benchmark Shanghai Composite Index slipped 0.3 percent to 3,103.43 points, while the Shenzhen Component Index plunged 2.95 percent to 9,712.80 points, according to Global Times China. The tech-heavy Chi Next, the benchmark tracking listed start-up companies, slumped as much as 6.1 percent during its eighth session of losses to hit a 16-month low, as faster approvals for IPOs increased the supply of equity in the market. The blue-chip CSI 300 Index was unchanged at 3,319.45 points. The index closed 3.64 percent lower, within sight of lows plumbed during the market crash in 2015. In remarks reported by the Xinhua News Agency on Sunday, Chinese Premier Li Keqiang said China's economy will face more pressure and problems in 2017, with changes in global politics and challenges to economic rules adding to uncertainty. A total of 521.99 billion yuan 75.73 billion in shares changed hands on the Shanghai and Shenzhen exchanges on Monday. (news.financializer.com). As reported in the news.

diamonds crack: Several days later, after 10 minutes of negotiation on the telephone with the stone's New York-based seller, Makhzani and a business partner bought the vivid-orange diamond for more than 1 million per carat, according to Market Watch. See Could man-made diamonds crack the lucrative gem market Deals like this high-price purchases of colored diamonds by investors have become more commonplace in recent years. He liked what he saw. Colored diamonds, created when a chemical element such as boron or nitrogen is trapped during a diamond's formation over millions of years, are part of a boom in niche over-the-counter luxury markets that were once the preserve of wealthy collectors. Over almost eight years, from the start of 2009 to Sept. 30, 2016, the latest recorded data, the price of pink diamonds has increased nearly 180% and sits at a record high. Read Why yield-thirsty investors are now lapping up fine wine Prices are being driven higher by investors who are hoping the hot market stays hot, many of whom have been disappointed by returns from other assets, say industry insiders. (news.financializer.com). As reported in the news.

futures ymh: Dow Jones Industrial Average futures YMH7, 0.10% fell 45 points, or 0.2%, to 19,787, while S&P 500 futures ESH7, 0.08% slipped 5.25 points, or 0.2%, to 2,267.25, according to Market Watch. Nasdaq-100 NQH7, 0.10% futures dropped 5.5 points to 5,053.50. In holiday-thinned trading, there was also increasing nervousness ahead of Friday's inauguration speech from President-elect Donald Trump. Regular trading for U.S. financial markets is closed on Monday in observance of the Martin Luther King Jr. holiday. European stocks SXXP, -0.08% were lower across the board on Monday, though the FTSE 100 UKX, 0.14%was holding up slightly better as a sharp slide in the British pound supported exporters. On Friday, U.S. stocks finished a lackluster week largely in the red, the Dow industrials DJIA, -0.30% finishing 0.4% lower and the S&P 500 SPX, -0.30% easing 0.1%. The Nasdaq Composite Index COMP, -0.63% rose 1% for the week, after finishing at 5,574.12 for its sixth all-time closing high in seven sessions. (news.financializer.com). As reported in the news.

hasn t: Last year Yellen was saying that the dollar's effective rate was up 20 percent, and it was holding back exports, weighing on profits, and holding down inflation, according to The Japan Times. The yen has weakened about 8 percent since Trump's win in November and is down about 26 percent since Prime Minister Shinzo Abe came to power in late December 2012. What's amazing is that he hasn't said anything about the yen, Tatsuo Yamasaki, a former vice finance minister for international affairs, said in an interview on Thursday. Trump has not shied away from bringing up foreign exchange in the past, including promising during the campaign to label China a currency manipulator as soon as he took office. Although Trump did comment on the yen and manipulation in 2015 during the primary, there has been little on the subject from him since, and that has been noticed by those in Japanese policy circles, like Yamasaki. He has also been vocal on trade, vowing to withdraw the U.S. from the Trans-Pacific Partnership negotiations and singling out China, Mexico and Japan at his news conference on Wednesday. (news.financializer.com). As reported in the news.

investors need: Instead, investors should use the overreaction to pick up beaten-down Chinese assets, according to Market Watch. We are not overall concerned, but I think a lot of the time, fund managers only look at the headline debt number. Even with debt-to-GDP at a staggering 250%, there's no reason to worry about a potential credit bubble in the world's second largest economy, says Ken Wong, Asian equity portfolio specialist at Eastspring Investments in Hong Kong. They don't look at the details and see that corporate borrowing is slowing down, deleveraging is happening, and nonperforming loans are falling, he told Market Watch. Expectations are very low for China right now. These are all things that investors need to realize. (news.financializer.com). As reported in the news.

isn t: Not for the economic inequality in many societies, not for the growing fear of globalization, not for the populist successes in the Brexit vote in the UK and the presidential election in the United States, according to Deutsche Welle. At least that's the statement Schwab used at the opening press conference of the 47th World Economic Forum in Davos. And the World Economic Forum, which he founded in 1971, isn't to blame either. He read out a text that he himself had written more than 20 years ago. WEF founder Klaus Schwab 'We cannot have just populist solutions' That still applies today, Schwab said Every simplified approach to deal with the global complex agenda is condemned to fail. In it, he had warned against increasing populism and demanded that globalization must benefit the majority of the population and not just a small elite. (news.financializer.com). As reported in the news.

one-china policy: In an interview with The Wall Street Journal published Friday, Trump again raised the prospect of using Taiwan as a bargaining chip in Sino-U.S. relations, according to The Japan Times. Asked if he supported the one-China policy on Taiwan, Trump said Everything is under negotiation, including one China. Foreign Ministry spokesman Lu Kang on Saturday called the one-China principle nonnegotiable and the political foundation of China-U.S. relations. Washington recognized Beijing diplomatically as the one China in 1979, and has kept only unofficial ties with Taiwan since then though it has sold arms to Taipei under the Taiwan Relations Act, including some 1.83 billion worth in 2015. That call was believed to be the first time an American president or president-elect had publicly spoken with Taiwan's leader since official diplomatic ties were switched to Beijing. Suggestions in the past that the U.S. may change its stance have been met with alarm in Beijing, including after Trump's unprecedented phone call with Taiwan President Tsai Ing-wen on Dec. 2. (news.financializer.com). As reported in the news.

imf: It estimated that the global economy grew 3.1 percent in 2016, the weakest since 2008-2009, owing to a challenging first half marked initially by turmoil in world financial markets, according to Global Times China. The projections for 2017 and 2018 remained unchanged relative to its forecast in October 2016. After a lackluster outturn in 2016, economic activity is projected to pick up in 2017 and 2018, especially in emerging market and developing economies, said the IMF in its update of the World Economic Outlook released on Monday. According to the IMF, this forecast incorporated a firming of oil prices and the assumption of a changing policy mix under a new administration in the United States and its global spillovers. The IMF projected that the emerging markets and developing economies will grow 4.5 percent in 2017 and 4.8 percent in 2018, higher than the 4.1 percent in 2016. Much of the better growth performance we expect this year and next stems from improvements in some large emerging market and low-income economies that in 2016 were exceptionally stressed, Maurice Obstfeld, the chief economist at the IMF, told a press conference on Monday. (news.financializer.com). As reported in the news.

root cause: The theme of this year's forum is Responsive and Responsible Leadership, according to Global Times China. Amid the emergence of anti-globalization and protectionism, China attaches more significance to responsibility than leadership in global economic governance. The difference is, Chinese President Xi Jinping attended the meeting and delivered a keynote speech this time - the first such appearance by a Chinese head of state in history. The world is now standing at a crossroads. The root cause of the global economic slowdown is backward structural reforms. Support for trade liberalism is diminishing while trade conflicts are becoming increasingly common. (news.financializer.com). As reported in the news.

selection process: The government expects proceeds of up to 1.4 trillion from the planned sale under its special account budget plan for fiscal 2017 starting in April, but the amount may be reduced to around 1 trillion if share prices slump, according to The Japan Times. The ministry decided Monday to begin a selection process to choose around six brokerages by the end of March to serve as the main underwriters. Sources said the timing will depend on stock market conditions. The government, which owns an 80.49 percent stake in Japan Post Holdings, will sell the shares in several batches through fiscal 2022 to raise around 4 trillion for reconstruction work in the disaster-hit Tohoku region. The share price of Japan Post Holdings dropped below its IPO price of 1,400 after its market debut, as profitability at its two group arms Japan Post Bank Co. and Japan Post Insurance Co. was squeezed by the Bank of Japan's negative interest rate policy. The decision comes as Japan Post Holdings shares have seen a rebound to levels above the public offering price amid a surge in the overall Japanese stock market. (news.financializer.com). As reported in the news.

swiss alps: Next to him are young participants from the Philippines, Russia, China and Rwanda, according to Deutsche Welle. It's the kick-off to a strenuous week at the World Economic Forum. Maninder Singh Bajwa sits in a restaurant in Davos, 1800 meters high, up in the Swiss Alps. The snow is glistening outside. Somehow, I feel like Shah Rukh Khan, the great Indian actor, he laughs. Maninder is beaming. (news.financializer.com). As reported in the news.

tech giant: The special prosecutor's office, in making this decision to seek an arrest warrant, determined that while the country's economic conditions are important, upholding justice takes precedence, Lee Kyu-chul, a spokesman for the office, told a media briefing, according to Deutsche Welle. DW recommends Samsung chief questioned over Park corruption scandal The head of the tech giant could face bribery charges as part of a scandal surrounding South Korea's leader. Samsung is suspected of giving 43 billion won 36 million, 34 million euros to Choi Soon-sil, a longtime friend of impeached South Korean President Park Geun-hye's, in return for government support for a controversial merger, prosecutors said. Police allege controversial business deals were linked to huge donations paid to President Park Geun-hye. 12.01.2017 Will South Korean scandal shake up Samsung South Korea's corruption scandal has spilled over into the highest levels of business. Protestors want Park to step down following her impeachment earlier this month. 24.12.2016 South Korea prosecutors raid Samsung offices in Park political scandal probe South Korean prosecutors have raided Samsung Electronics offices as a part of a probe in the scandal involving President Park Geun-hye. Suspected of bribery and perjury, if Samsung's Lee Jae-yong is indicted, his ascension to chairman could be complicated. 12.01.2017 Half a million South Koreans protest against embattled president The protests come as investigators questioned a jailed friend of President Park at the center of a widening scandal. (news.financializer.com). As reported in the news.

business world: But what about those cranky members of a profession long known as the dismal science Like much of America, professional economists are split, according to Market Watch. Many economists who work in academia are anxious about Trump's ardently pro-business agenda, according to one highly respected economist. WASHINGTON Market Watch Consumers, investors and businesses have already shown enthusiastic approval for most of Donald Trump's plans for the economy. Justin Wolfers, a professor at Michigan and prolific commentator, said in a New York Times article that a sense of anxiety and foreboding was the mood. Yet discussions by Market Watch with economists in the business world who work for large banks and other Wall Street institutions reflect far less alarm. He asserted that conservative academic economists felt the same way. (news.financializer.com). As reported in the news.

concern year: Stock markets are booming, oil prices are on the rise again and the risks of a rapid economic slowdown in China, a major source of concern a year ago, have eased, according to Global Times China. And yet, as political leaders, CEOs and top bankers make their annual trek up the Swiss Alps to the World Economic Forum WEF in Davos the mood is anything but celebratory. Photo CFP The global economy is in better shape than it's been in years. Beneath the veneer of optimism over the economic outlook lurks acute anxiety about an increasingly toxic political climate and a deep sense of uncertainty surrounding the US presidency of Donald Trump, who will be inaugurated on the final day of the forum. His victory, less than half a year after Britain voted to leave the European Union, was a slap to the principles that elites in Davos have long held dear, from globalization and free trade to multilateralism. Last year, the consensus here was that Trump had no chance of being elected. (news.financializer.com). As reported in the news.

spot checks: Investors will be cautious ahead of the upcoming Chinese Spring Festival, which will start from January 27, said the report, according to Global Times China. China's top regulators have made commitments to strengthen supervision over domestic capital markets, which will also dampened investor enthusiasm for stocks over the short term, the report noted. State-owned enterprise reform related stocks are expected to continue to support the stock market, according to a report by the financial news portal cnstock on Friday. For instance, China's central bank recently conducted spot checks on leading Bitcoin exchanges in Beijing and Shanghai, Reuters reported on Wednesday. Experts advised investors to maintain a wait-and-see stance. In the short term, negative sentiment and the shortage of funds will be the main factors weighing on stocks, said the cnstock report. (news.financializer.com). As reported in the news.