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

cabinet nominees: He said he had followed the advice of a lawyer who believed the disclosures were not necessary, according to The Japan Times. But Democrats seized on the issue as evidence of serious ethics challenges among Trump's Cabinet nominees. Mnuchin said the failure to disclose the assets was an oversight that he had corrected when it was brought to his attention by staffers of the Senate Finance Committee. Never before has the Senate considered such an ethically challenged slate of nominees for key Cabinet positions, Senate Democratic Leader Chuck Schumer said in a statement. Mnuchin said he had never used the Cayman Islands to avoid paying his taxes. In the hearing, Democrats on the Senate panel challenged Mnuchin's explanations, suggesting it was because he did not want to reveal his involvement in a business that could be used as an offshore tax haven. (news.financializer.com). As reported in the news.

china: Yet, there is nobody who protects his market more rigorously, says DW's Frank Sieren. 18.01.2017 Can Trump contain China with Russia's help By nominating China critics and Russia friends, US President-elect Donald Trump has made clear that he intends to change the fundamental rules of US foreign and trade policies, expert Thomas J ger tells DW. 29.12.2016 Taiwan hopes for a Trump effect President-elect Trump has said that the one-China policy could be leveraged to get a better deal from China, according to Deutsche Welle. Should Taiwan expect Beijing's wrath or just a shaken status-quo Klaus Bardenhagen reports from Taipei. 15.12.2016 During his campaign for president and even after winning the elections, Trump made a series of head-turning statements and gestures in relation to China that have irked the leadership in Beijing and unnerved many Chinese. DW recommends Sieren's China Good counterattack China's President Xi Jinping made a credible case for free trade at the World Economic Forum in Davos. They included leveling accusations that China was trying to rape our country with unfair trade policies, threatening to impose punitive tariffs on Chinese imports into the US and declare Beijing a currency manipulator. Beijing was further angered by the incoming US president's suggestion that the one-China policy could be negotiable. But the move that raised most hackles in China was Trump's protocol-smashing phone call with Taiwan's leader Tsai Ing-wen. (news.financializer.com). As reported in the news.

chinese imports: Trump said during his campaign that he would impose tariffs of up to 45 percent on Chinese imports, according to Global Times China. He also vowed to bring US factories back home and create more job opportunities. The comments came amid growing concern in global markets about a possible trade war between the two countries after US President-elect Donald Trump takes office on Friday. At a press conference on Thursday, MOFCOM spokesperson Sun Jiwen reiterated that economic cooperation between China and the US benefits both countries. Sun said that the Chinese government is willing to work with the Trump administration to boost the healthy and sound development of the economic relationship between China and the US. It's hard to predict whether Trump will translate his campaign rhetoric into policies and launch a trade war against China, said Li Jian, a research fellow at the Chinese Academy of International Trade and Economic Cooperation under the MOFCOM, told the Global Times Thursday. We believe that the two countries can solve their trade problems through dialogue and cooperation, Sun said. (news.financializer.com). As reported in the news.

emergency: State of emergency rule once only affected Turkey's southeast, where heavy fighting with the Kurdistan Workers Party PKK peaked in 1990s and interrupted civilian life, according to Deutsche Welle. Now, for the first time, it encompasses the entire country. Politically, judicially and economically, the emergency laws enacted after the failed coup attempt on July 15 have had a significant impact. The emergency laws in Turkey's predominantly Kurdish region, which became synonymous with human rights abuses and extrajudicial killings, finally came to an end in 2002 under the Justice and Development Party AKP government, chaired by the now-President Recep Tayyip Erdogan. The government, however, argues that the judiciary and police have exercised their stretched authority primarily against supporters of Fethullah Gulen, the Muslim cleric in US exile who is accused of masterminding the coup attempt. Today, the same government has come under fire for of abusing its extended executive powers under the current emergency rule to consolidate its political strength. (news.financializer.com). As reported in the news.

globalization: Obviously, these problems will never be solved by a shift away from globalization, according to Global Times China. Economic globalization is a double-edged sword, but its benefits far outweigh the costs, whether for developed and developing economies, or the world as a whole. The current global economic situation is the result of a lack of new growth engines, inadequate global economic governance and uneven development. Take a look at the benefits that the United States reaps due to its position. Moreover, foreign direct investment in the United States is adding millions of new jobs each year. Free trade has lowered the price of food, clothing and other goods that working-class Americans use the bulk of their paychecks to buy. (news.financializer.com). As reported in the news.

interest: Will you acknowledge in writing that you are a fiduciary when you make investment recommendations to me In other words, will you agree that you are legally required to make investment recommendations only that are in my best interest If not, why Are you and your firm complying with the Labor Department's conflict of interest rule and exemptions on fiduciary investment advice If you use one of the exemptions, explain the conflict of interest you have that requires you to comply with the exemption, according to Market Watch. Do you have a credential or designation from an accredited program that requires training and that holds its members to strict ethical standards Does the organization let investors file complaints about people that they have issued adviser designations What fees and expenses will I be charged Will you give me a list of those fees and expenses, and explain what each fee and expense pays for Do I pay all of these fees and expenses directly to you or are any fees or charges taken out of my investments Do you or your firm get paid from any other sources in connection with my business with you Do you or your firm pay anyone else because I opened an account with you or because I make investments that you recommend Do you make more money if I buy some investments instead of others Explain why. Here are some questions the Department suggests retirement account owners ask advisers. Are there any limitations on the investment products you will recommend If so, what are they For example, do you sell only your firm's products proprietary products or do you sell products from other companies Under what circumstances will you monitor my investments and make recommendations about changing my investments What are your reasons for recommending a rollover from my current plan or IRA What are the alternatives to a rollover Will I have to change my investments if I move my retirement savings to an IRA or a different plan How do the fees and expenses compare to what I am paying now Why do you think a rollover is better than leaving my retirement savings in my current retirement plan or IRA What is your experience with giving advice on retirement accounts What customer references or customer satisfaction surveys are available for my review For other questions to ask, see Questions You Should Ask About Your Investments and What To Do If You Run Into Problems and Where Do I Start. If any excuse is provided that the financial adviser can't' provide the answers in writing - the investor should just walk away, he said. Of note, Ron Rhoades, the program director of the financial planning program at Western Kentucky University's Gordon Ford School of Business, said investors should get the answers to the Labor Department's questions in writing and signed by the financial adviser. (news.financializer.com). As reported in the news.

london british: And HSBC CEO Stuart Gulliver announced that his bank would move jobs to Paris, which had previously generated only about one-fifth as much business as London, according to Deutsche Welle. British Prime Minister Theresa May did not mention these job losses at the World Economic Forum. Axel Weber, head of Switzerland's UBS, said 1,000 of its 5,000 jobs in London could be affected. She said only that Britain must face up to a period of momentous change. It means accepting that the road ahead will be uncertain at times, but believing that it leads to a brighter future for our country's children and grand-children. It means we must go through a tough negotiation, and forge a new role for ourselves in the world. (news.financializer.com). As reported in the news.

morning session: On Wednesday, the key market gauge rose 80.84 points, according to The Japan Times. The Topix index of all first-section issues finished up 14.29 points, or 0.94 percent, at 1,528.15, after climbing 4.76 points the previous day. The 225-issue Nikkei average gained 177.88 points, or 0.94 percent, to end at 19,072.25. The Nikkei average opened above 19,000 as investors took heart from the yen's weakening against the dollar, brokers said. On the TSE, mainstay issues attracted hefty buying, helping push up the Nikkei average nearly 230 points early in the morning session. The dollar climbed above 114.50 after U.S. Federal Reserve Chair Janet Yellen in a speech on Wednesday indicated the Fed's readiness to raise interest rates early. (news.financializer.com). As reported in the news.

student loans: Sallie Mae SLM, 1.06% the leader in private student loan origination, saw its stock price grow more than 50% between the election and the end of last week, according to Market Watch. Other companies involved in the industry, including Navient NAVI, 0.63% and Nelnet NNI, 0.70% two publicly traded firms that service student loans originated by the government, also saw increases of about 18% and 26% respectively during that period. But investors appear to be betting that a President Trump and Republican Congress will be good for the companies involved in the 1.3 trillion student loan business. Discover DFS, 0.29% which also offers private student loans, saw its stock rise about 8%. Though a variety of factors likely contributed to the growth in the stocks, experts say investors' perception that the new administration will make more room for private companies in student lending likely played a role. But large scale changes or even smaller tweaks to the system, which may be on the table in a new administration, could shift that balance. Caption outside of wrapper for normal article images The Department of Education is the nation's largest student lender, accounting for roughly 90% of the market. (news.financializer.com). As reported in the news.

tokyo: In fact, Tokyo has always tapped dollar diplomacy into its ASEAN policy, according to Global Times China. Like some other Western countries, Japan extends the economic aid in governmental development and non-government funds with political conditions attached. There is no doubt that Tokyo's aid to the Philippines is aimed at China. Abe not only offers money to Manila, but also military support such as patrol boats, planes and military training. Tokyo's dollar diplomacy starts with the strengthening of its cooperation with Manila on issues like anti-terrorism and maritime security, followed by some security collaborations in the South China Sea like in joint patrols of the waters. By doing so, he intends to influence the Philippines to contain China. (news.financializer.com). As reported in the news.

wall street: Demand for one-month call options tied to the CBOE Volatility Index VIX, -9.70% has spiked in the past week, suggesting investors may be expecting a selloff in the near term, while money has also poured into the exchange-traded products that aim to track market volatility, according to Market Watch. While Wall Street greeted Trump's victory with enthusiasm his election sparked a rally that took indexes to repeated records the excitement has waned of late. Market anxiety has been rising in anticipation of Friday's inauguration of President-elect Donald Trump, and traders are taking to the instruments that can provide a hedge in volatile times. Indexes have struggled to break out of a recent range, and the VIX, a popular proxy for investor anxiety, has climbed more than 16% thus far this week. Read Trump inauguration set to unleash cascade of stock-market anxiety Volatility-based ETPs typically move inversely to the broader market and investors use them as a form of protection, although they are designed to be short-term holdings. However, at 13.10, it remains well below its long-term average of 20. (news.financializer.com). As reported in the news.

american chamber: The comments come after the American Chamber of Commerce in China AmCham China released a survey on Wednesday, saying that China has become a less attractive destination for foreign firms, according to Global Times China. The survey was based on 462 responses from member companies in the US, Europe, Australia and Asia that are doing business in China. Photo CFP China still remains an appealing and open destination for foreign investors, despite some challenges due to rising costs and uncertainty over Donald Trump's presidency, experts said on Wednesday. The share of companies that identified China as a top three global investment priorities dropped to 56 percent, compared with a peak of 78 percent in 2012, a five-year low, according to the report. The chamber noted that foreign companies are slowing investment in China partly due to higher costs and rising protectionism. In addition, more than 80 percent of the companies surveyed said that foreign companies are less welcome in China than in the past, up from 77 percent in 2016. (news.financializer.com). As reported in the news.

asian trade: And what will his first 100 days will look like Traders are focused on how Trump tackles China in his first week and whether he labels the country a currency manipulator, Bresler added, according to Market Watch. There is so much uncertainty, said Alex Furber, sales trader at CMC Markets. What will his inauguration speech be on Friday asked Andrew Bresler, a director at Saxo Capital Markets. The prospect of a trade war...no one really knows what that is going to look like...how much damage that will do to China. Japan's Nikkei NIK, 0.34% turned positive after spending most of the morning in the red it closed up 0.4%. This is as the yen USDJPY, 0.07% fell further during Asian trade; it was last down 0.7% against the dollar. Markets were struggling for a direction, either to stick to risk assets or go into safety, Furber said. (news.financializer.com). As reported in the news.

ceos bankers: China, a one-party communist state that maintains tough restrictions on foreign investment, would seem an unlikely champion of free markets at an event that has become synonymous with global capitalism, according to The Japan Times. But with Trump promising a more protectionist, insular approach and Europe preoccupied with its own problems, from Brexit to terrorist attacks, China sees an opportunity to fill what could become a vacuum in global economic leadership. Xi's speech to political leaders, CEOs and bankers at the World Economic Forum in Davos, Switzerland, was the first by a Chinese leader and marked a possible shift in the global political landscape as Western democracies struggle with the rise of populist nationalism. Speaking before a vast audience that included U.S. Vice President Joe Biden, Xi likened protectionism to locking oneself in a dark room and cutting off all light and air. Real estate mogul and former reality TV star Trump, who will be inaugurated as president on Friday, campaigned on a promise to confront China more aggressively on trade and renegotiate or ditch multilateral trade agreements. No one will emerge as a winner in a trade war, Xi said in the nearly hourlong speech. (news.financializer.com). As reported in the news.

dow jones: We are probably going through it now, according to The Japan Times. However, Sinai also offered the view that if the Trump administration realizes its pledges of tax cuts and infrastructure investments, the U.S. economy will grow 3 percent to 4 percent in 2019 and the dollar's rise against the yen will be accelerated. The market over-anticipates and waits for the reality, he said. Trump has pledged 1 trillion of infrastructure investments over 10 years and tax cuts. In the U.S. stock market, investors feel the Dow Jones industrial average has stalled just below the threshold of 20,000 after advancing sharply since Trump's victory in the presidential election in November. Sinai said that higher personal consumption resulting from tax cuts would be the biggest engine for economic growth. (news.financializer.com). As reported in the news.

energy-starved economy: The Nepal Electricity Authority recently signed an initial agreement with China Three Gorges Corporation CTGC to develop the 1.6 billion West Seti hydropower project in midwest Nepal, which could generate 750 megawatts of power when completed, according to Global Times China. The project is expected to address chronic power shortages in the country and boost the energy-starved economy. The latest progress in the project may put some pressure on other Asian countries, particularly India, to rebalance their strategic and economic calculations and decide whether they want to join China in improving regional infrastructure and reap gains from engaging in pragmatic economic cooperation. If it is connected to grids in other South Asian countries after it goes into operation, it could increase the stability and security of the power supply in the region and unleash regional economic potential. It is understandable that India may be wary of China's increasing economic engagement with Nepal as India sees Nepal as its conventional sphere of influence and has a particular interest in maintaining dominance in Nepal's hydropower industry. According to a report last year from India's think tank Gateway House, Chinese investments in Nepal overtook India for the first time in 2014 and contributed to 42 percent of total foreign direct investment to Nepal in 2015-16. (news.financializer.com). As reported in the news.

inflation reading: Separately, industrial production climbed 0.8% in December, rising by the largest amount in two years, according to Market Watch. Inflation topping 2% in 2016, a level viewed as the Federal Reserve's target for a healthy economy, might compel the central bank to increase rates at a rapid clip, in turn encouraging selling in Treasury notes. In the latest U.S. inflation reading, the Consumer Price Index rose 0.3% in December, while core CPI, which excludes food and energy, added 0.2%. The index rose 2.1% overall in 2016, its fastest pace since 2011. Investors tend to unload government bonds in the face of expectations of higher rates because they can repurchase richer-yielding Treasury notes later. Her comments at 3 p.m. Meanwhile, Federal Reserve Chairwoman Janet Yellen during the afternoon said she expects interest rates to rise a few times per year until the end of 2019. (news.financializer.com). As reported in the news.

intelligence: The Tunisian Anis Amri is accused of having killed 12 people by running them over with a truck at a Christmas market on December 19, 2016, according to Deutsche Welle. Amri was denied asylum in May 2016. Wainwright said Europol can't reduce that threat to zero as it is facing a very determined and well-resourced terrorist group in 'IS' that is intent on carrying the fight into our backdoor in Europe as we have seen from Paris through Brussels and now in Berlin as well. Yet German authorities couldn't deport him as the necessary papers hadn't yet arrived from Tunisia. A few weeks later, they warned the BND again. In September, Moroccan intelligence authorities warned Germany's foreign intelligence service BND about Amri. (news.financializer.com). As reported in the news.

mortar rounds: The insurgents have made a habit of bombarding areas no longer under their control and consider anyone who failed to retreat with them infidels worthy of death, according to Deutsche Welle. The shoppers pay no heed as they stock up at the market. Mortar rounds come crashing into the area with alarming frequency, exploding with a sharp, dry bang. Fruit, vegetables, eggs and cooking gas feature prominently on the shopping list cheap essentials for the city's cash-strapped inhabitants. Since then, the front line has rolled through the eastern half of Mosul, exposing its inhabitants to the fighting while pushing back the insurgents. The Iraqi military launched its campaign to end IS reign in Mosul on October 17, and the first troops entered the city on the east bank of the Tigris early in November. (news.financializer.com). As reported in the news.

obamacare others: Fed officials said companies in their districts acknowledged the uncertainty surrounding the change of administrations in Washington, with a health care firm in the Boston region expecting a possible headwind from the battle over Obamacare, according to The Japan Times. Others worried about the potential fallout from trade tensions. Manufacturers in most of the Federal Reserve System's 12 regions reported increased sales, the Fed reported in the document, a collection of anecdotal information from businesses assembled before each Fed meeting. But in general, across industries firms were said to be optimistic about growth in 2017, while also reporting that it was becoming increasingly difficult to fill vacant positions. Labor markets were reported to be tight or tightening. That issue is likely to intensify. (news.financializer.com). As reported in the news.

project syndicate: Project Syndicate Speculative markets have always been vulnerable to illusion, according to Market Watch. But seeing the folly in markets provides no clear advantage in forecasting outcomes, because changes in the force of the illusion are difficult to predict. NEW HAVEN, Conn. In the United States, two illusions have been important recently in financial markets. The other is a naturally occurring illusion the proximity of Dow 20,000. One is the carefully nurtured perception that President-elect Donald Trump is a business genius who can apply his deal-making skills to make America great again. (news.financializer.com). As reported in the news.

world: It noted that in 2016, the world economy expanded by just 2.2 percent, the slowest rate of growth since the Great Recession in 2009, according to Global Times China. Underpinning the sluggish global economy are the feeble pace of global investment, dwindling world trade growth, flagging productivity growth and high levels of debt, said the report. This modest recovery is more an indication of economic stabilization than a signal of a robust and sustained revival of global demand, said the UN annual economic report World Economic Situation and Prospects. The report noted that global economic prospects remain subject to significant uncertainties and risks that are weighted on the downside, with the potential to obstruct the modest growth forecast for 2017-18. Launching the report at the UN Headquarters in New York, Lenni Montiel, UN assistant secretary-general for economic development, said the world needs to redouble the efforts to bring the global economy back on a stronger and more inclusive growth path and create an international economic environment that is conducive to sustainable development. It said among the uncertainties are interest rate rises in the United States, the forthcoming changes by the new administration of the United States to international trade policies as well as Brexit and its potential implications for free movement of goods and workers in Europe. (news.financializer.com). As reported in the news.

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.