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

market strategist: BA, 1.05% and Caterpillar Inc, according to Market Watch. CAT, -0.95% contributing heavily to gains. The Dow Jones Industrial Average DJIA, 0.16% surged 155.80 points, or 0.8%, to close at 20,068.51, with Boeing Co. Clarity is the markets' oxygen. The new president has said he wants to cut corporate taxes and loosen regulations in moves that could potentially help corporate earnings. The more President Trump provides, the more Dow 20,000 moves to the rear view mirror Dow 21,000 will soon become the next media obsession, said Quincy Krosby, market strategist at Prudential Financial, in emailed comments. (news.financializer.com). As reported in the news.

money laundering: The decision was made based on the results of previous investigations, said the bank, without elaborating, according to Global Times China. The PBOC sent inspection teams to major Bitcoin exchange platforms in China earlier this month, including BTCChina, the country's biggest Bitcoin trading platform, and two other major Bitcoin exchanges, Huobi and Okcoin. The PBOC operations office in Beijing said in a statement that its investigators will look into payment and settlement, money laundering, foreign currency exchange, as well as information and fund security. Bitcoin, without ties to the bank or government, is underpinned by blockchain technology, a digital ledger system that uses cryptography. The PBOC told investors to be aware of the risks associated with Bitcoin trading, market fluctuation and fund security, and to explore Bitcoin investment with prudence. It allows users to spend and transfer money anonymously, making the digital currency a handy tool for money laundering and capital flight. (news.financializer.com). As reported in the news.

newlyminted u.s: Analysts and investors, however, remain optimistic that the nearly nine-year bull run in equities will continue as long as the economy and corporate profits continue to show growth, according to The Japan Times. While the Dow hitting 20,000 is one of the least meaningful data points on my screen, it does suggest that the equity rally is pretty broad-based, said Michael Purves, chief global strategist and head of derivatives research at Weeden & Co. The rally, driven by enthusiasm over pro-growth policies from newlyminted U.S. President Donald Trump and an optimistic start to earnings season, has led to some speculation that stocks have run up too far. What's important is that the Dow is going up. The fastest move between these thousand-point milestones was 24 trading days between 10,000 and 11,000, from March 29 to May 3 of 1999. The 42-session surge from the first close above 19,000 was driven by financial stocks, specifically Goldman Sachs and JPMorgan Chase, which were together responsible for more than 20 percent of the move. (news.financializer.com). As reported in the news.

pipeline projects: The blue-chip stocks index, which has been marching steadily higher since hitting rock bottom in March 2009, continued to rally after Trump's inauguration speech last Friday before finally hitting the landmark level Wednesday, according to Deutsche Welle. According to analysts, the shift was triggered by Trump's announcements Tuesday to wave through two major pipeline projects that had been blocked by the former administration. The index had been rallying since Donald Trump's election victory in November and moved to within a point of the historic level on January 6, with investors placing their faith in Trump's promises of significant fiscal spending and far reaching tax cuts. Pro-business administration' Briefing analyst Patrick O'Hare told the news agency AFP that the pipeline decision was not a surprise as it was consistent with Trump's campaign rhetoric. It's time dust off those Dow 20k hats again, because the Trump rally is well and truly back on, said Neil Wilson, senior market analyst at ETX Capital. Yet it was a timely reminder for a listless market of the Trump Administration's push to increase economic activity in the US. The rally prompted further stock buying by investors who were caught off guard in what O'Hare dubbed FOMO or the fear of missing out and the Dow was 20,010.71, up over 0.5 percent, 15 minutes into trading. (news.financializer.com). As reported in the news.

revenue boeing: We extended our aerospace market leadership in our centennial year and positioned Boeing for continued growth and success in our second century, he said in a statement, according to Deutsche Welle. Boeing shares rose more than two percent in early trading on Wednesday, giving a boost to the Dow Jones, which surpassed the 20,000-point mark for the first time in its history. Nevertheless, chief executive Dennis Muilenburg described Boeing's performance as solid. Boeing investors mainly cheered the aircraft maker's outlook for 2017. The company currently runs a backlog of more than 5,700 aircraft with a sticker value of 416 billion, although airlines routinely get discounts. More deliveries, but less revenue Boeing announced it expected to deliver 760 to 765 commercial aircraft, which would be an increase over the 748 planes delivered in 2016. (news.financializer.com). As reported in the news.

border tax: Threats by Trump, who took office on Friday, to impose a border tax on imports and take other protectionist measures have raised uncertainties about global trade, according to The Japan Times. There is some danger if he bases his decisions on wrong economics without listening to good advisers, and if he thinks that he could manage national economic matters as he does his real-estate company, Hamada said in a recent interview. Koichi Hamada, emeritus professor of economics at Yale University and Cabinet adviser, also said Abe could relax his timetable for balancing the budget in the next four years and should be ready to further delay a planned sales-tax hike to ensure economic growth. If the United States were to be led by a near-autocrat and if Japan cooperates just to please him, that would break the whole world system, he said. Please heed the views of your own experts. And if Trump should criticize Japan for not going along, Hamada said Tokyo should respond You're wrong. (news.financializer.com). As reported in the news.

chinese goods: Asked by Sen, according to The Japan Times. Orrin Hatch, the committee's pro-trade Republican chairman, if he agrees that China appears to have stopped trying to devalue its currency and is now trying to prevent depreciation, Mnuchin wrote If confirmed, I intend to review the issue of Chinese currency manipulation. In written answers to supplemental questions from the committee following his confirmation hearing last week, Mnuchin did not close the door to a potential Treasury declaration of China as a currency manipulator. The document was verified by a Senate aide. That process could end in punitive duties on Chinese goods aimed at eliminating any advantage that the currency manipulation will provide. The Chinese currency question is important because if Treasury declares Beijing a currency manipulator, it starts a process under which the Trump administration is required by law to demand special negotiations with Beijing to resolve the issue. (news.financializer.com). As reported in the news.

entrenching u.s: The TPP is America's passport to Asia, according to The Japan Times. The U.S. can credibly say that it's part of Asia if it's in the TPP, Amari said in an exclusive interview on Jan. 18. A ratified TPP would set fair and democratic ground rules for Asia-Pacific trade and investment while entrenching the U.S. presence in a region that will drive global economic growth in coming decades, Amari said. Without the TPP it's an outsider. The Trump camp probably misunderstood what is in the TPP, he said. Amari said he remains optimistic that Trump, whose inauguration was on Friday, will come to see the merits of the TPP and that the U.S. will ratify the deal during his term. (news.financializer.com). As reported in the news.

event venue: The park will also feature a luxury hotel, an event venue and swimming pool with spa facilities, according to Deutsche Welle. It's set to attract 53,000 divers every year. According to investors, it will be the biggest diving tower in Germany, exceeding the country's previous record of 20 meters. The spa town of Waren has long wished to expand upon its health-related tourism in the M ritz National Park, especially during the low season. The project is slated for completion in 2019 and will cost an estimated 88 million euros. at/cho dpa (news.financializer.com). As reported in the news.

forest reserve: The scene is deceptively tranquil, according to Deutsche Welle. Communities settled in and around the Bukaleba Central Forest Reserve say they are being deprived of the land they have worked and lived on since the 1970s, when they were encouraged by the Idi Amin Dada government to settle there. Not too far away, workers labor for a Norwegian-owned forestry company. The villages they established have not stood the test of time, or the hungry hand of profit. A 2014 study by Kristen Lyons and a team of researchers for the California-based Oakland Institute environmental think tank cites the real reason as clearing communities to make way for private forestry investors. By the end of the 1980s, the administration of the day had begun to push people back off the reputedly degraded or underused land. (news.financializer.com). As reported in the news.

index: The so-called fear index hovered at 11.4 on Tuesday, down more than 2% from 11.8 on Monday, according to Market Watch. The VIX measures market expectations for volatility over the next 30 days; it's calculated from the implied volatilities of S&P 500 index options. But the mood on Wall Street is anything but, suggesting that the VIX' volatility index's foray below 20 may be a sign of turmoil ahead. A low reading indicates traders anticipate a placid market while a higher number suggests elevated uncertainty. Additionally, the VIX rarely goes below 10. See Trump is building a wall of worry, and that could be good news for stocks 11.8 is more than one standard deviation away from the VIX's long term average of 20. (news.financializer.com). As reported in the news.

investors: Ordinary investors now can buy shares in startups that are just getting off the ground, sometimes for just a few dollars, according to Market Watch. If, that is, they are willing to take on a whole lot of risk. Not anymore. It all started with the Jumpstart Our Business Startups Act in 2012. Their stake can be as little as 10, or as much as they like, within Securities and Exchange Commission limits based on income. Since the act's Title III took effect in May 2016, people no longer have to be well-to-do accredited investors to buy into startups. (news.financializer.com). As reported in the news.

morgan: The SEC complaint says the sales personnel used the program's past performance and risk metrics in investor presentations, according to Market Watch. They also failed to adequately disclose that investors could be required to borrow more than advertised to participate and that markups would be charged on each trade. Registered representatives at both firms sold a foreign exchange trading program known as CitiFX Alpha to Morgan Stanley customers from August 2010 to July 2011, according to the SEC. Citigroup held a 49% ownership interest in Morgan Stanley Smith Barney at the time. Investors suffered significant losses as a result of the undisclosed leverage and hidden markups, says the SEC. Morgan Stanley and Citigroup did not admit or deny the findings but each agreed to pay a penalty of 2.25 million, to give back profits of 624 thousand and pay interest of 89 thousand. (news.financializer.com). As reported in the news.

rate hikes: In specific terms, the US economy, heavily reliant on domestic consumer spending, is seeing signs of an apparent improvement in retail sales, home sales, the unemployment rate and individual income, and thus is supportive of US firms' earnings growth, according to Global Times China. Also, historical statistics show that, prior to the 2016 election, in the eight US presidential elections since 1984, the year following the election generally saw gains for the full year. This will be underpinned by three pillars - fundamental support, the election effect, and the development of rate hikes in the world's largest economy. Looking further into that effect, the Russell 2000 Index - a gauge of US small-cap stocks - posted annual gains each year following a presidential election, while the only dent appeared in the S&P 500 - which measures large-cap US equities - in 2001 when the September 11 attacks occurred. However unpredictable Trump will be, his initiatives will boost the country's stock market, particularly small-cap equities that are envisioned to benefit the most from the new president's policy. Behind the general brisk market sentiment following the election is the fact that policy initiatives proposed by a president-elect during the campaign always tend to prop up the US economy in the near term and accordingly serve as a boon for the US equity market. (news.financializer.com). As reported in the news.

registration system: It also required fund managers to pass a national qualification exam to take a job in the industry, according to Global Times China. The regulations have eliminated many unqualified funds from the market, a change that one fund manager applauded as contributing to the industry's sound development. The industry's regulator tightened the rules for funds, initiating a registration system for PE fund managers. However, people in the industry pointed out that holes remain in the regulations. Despite fluctuations in fund returns, experts forecast the PE industry will grow quickly in 2017. One suggested regulators focus on cracking down on illegal fundraising. (news.financializer.com). As reported in the news.

stock: A purchase of at least 20 percent of stock in a listed company by an insurer is considered a major investment, according to Global Times China. The new rules came in the wake of recent barbaric behavior of some insurers using leveraged money to buy shares of listed companies late last year. The China Insurance Regulatory Commission CIRC set new rules on insurers' investment in the stock market, so that when insurance companies make major stock investment with non-insurer parties, they must use their own funds to make a purchase. Triggering sharp volatility in the market, such moves annoyed corporate executives and caused individual investors to suffer. Insurance firms are also not allowed to acquire listed companies or purchase a major stake, at least 20 percent, of their shares before gaining regulatory approval, according to the rules. The CIRC will take action when an insurance company, together with non-insurance parties, increases its holdings of a certain listed firm to 5 percent, such as suspending insurance funds to non-insurer parties acting in concert with the insurer. (news.financializer.com). As reported in the news.

transfer patents: The decision is a counterproductive signal for Germany as a research and development site, he said, adding that Germany could ultimately see a drop in tax income if other countries followed Germany's lead, according to Deutsche Welle. Chancellor Angela Merkel's cabinet is expected to approve draft legislation on Wednesday aimed at tightening rules that allow firms operating in Germany to transfer patents, licences, and market rights to tax havens where they pay little or no taxes. The industry lobby group's managing director Markus Kerber said in a message the change contradicted the country's previous policy of harmonized licensing payments and could be harmful in the long run. Finance Minister Wolfgang Sch uble estimated that Germany can earn an additional 30 million euros 32.2 million in taxes every year by closing the practice of patent box tax breaks on profits earned from patented research. According to a report commissioned by the European Parliament, Swedish furniture company IKEA, for example, has moved billions of euros in profits from high taxation EU countries into subsidiaries and undisclosed recipients in tax havens, paying little to no tax. Large scale tax avoidance Patent boxes offer special low interest rates for the income from patents and licences and have become a popular instrument with which countries poach innovative firms from each other. (news.financializer.com). As reported in the news.

brexit deal: May has already said that she wants to submit the final Brexit deal to the House of Lords, as well as to the House of Commons, James Hughes, Chief Analyst at London's online broker GKFX told DW. The decision to decide whether Parliament should be involved in the launch of Brexit will therefore not be so important, according to Deutsche Welle. Dramatic crash Pound Sterling has been on a rollercoaster ride since the result of the referendum confirmed Britain's withdrawal from the EU, with a downwards underlying trend. Experts are not expecting any significant changes to the value of the pound on Tuesday. Sterling has lost around 20% of its value against the US dollar, and after the pound dipped to 1.20 US dollars last week the world waited for the contents of May's keynote speech last Tuesday 17.01.17 in the hope of some clarity. Hard Brexit At last something resembling a plan was visible, even if it wasn't satisfactory. While the speech was without some important details, the address restored some optimism and the pound recovered. (news.financializer.com). As reported in the news.

i m: I bought by first oil painting in 1972, according to Deutsche Welle. I've never sold a painting, so the collection has continued to grow. Plattner, why did you decide to open a museum in Potsdam to exhibit your own art collection Hasso Plattner I've been collecting art for many years. With the growth of SAP, my stock, which I had to sell, and the money I got for it, went into my collection. I'm not the only one who's had the idea of opening a museum. It kept growing until all the walls were full. (news.financializer.com). As reported in the news.

energy shares: GE, 0.84% shares leading losses with a 2.6% decline, according to Market Watch. Earlier, the blue-chip average had been off by as many as 95 points. The Dow Jones Industrial Average DJIA, 0.57% closed down 27.40 points, or 0.1%, at 19,799.85, with General Electric Co. Another Dow component McDonald's Corp.MCD, -0.27% also weighed even after the fast-food giant reported earnings that beat expectations. Energy shares were hit hardest as oil prices sank, with industrials the second poorest performers. The S&P 500 SPX, 0.66% fell 6.11 points, or 0.3%, to close at 2,265.20, with six of the main 11 sectors trading lower. (news.financializer.com). As reported in the news.

farmers: Using a powerful spray gun from the back of a tractor they turned the European Council building a snowy white, according to Deutsche Welle. The European Commission, the executive arm of the 28-nation EU, decided in November to put a small stock of milk powder on sale. Dozens of farmers from Belgium, Germany, France, the Netherlands and Lithuania descended on the headquarters as agriculture ministers met inside. They planned to sell 22,500 tons, or 6 percent, of the 355,000 tons of powdered milk in stock. A milk producer tries to put out a flare as farmers spray powdered milk on the European Commission But farmers have been struggling - some nearing bankruptcy - with collapsing milk prices and opposed any sale. The EU maintained that it would not sell the milk at any price but following encouraging signals about a pickup in the milk market, they put some of the stock up for sale. (news.financializer.com). As reported in the news.

government: The National Reform and Development Commission, the People's Bank of China, the State Administration of Foreign Exchange and the Ministry of Commerce jointly launched new regulations, leaving domestic firms feeling that it will become even harder to export capital, according to Global Times China. However, I don't believe the policy tightening signifies a change in attitude toward opening up. The Chinese government has adopted a more stringent method in regulating cross-border capital flows under the capital accounts since the second half of 2016. In fact, China is one of the largest beneficiaries from economic globalization. The joint announcement from the four government bodies sent a clear message that the Chinese government is supportive of outbound investment projects that are authentic and legitimate, and adhere to compliance. The country's opening-up policy is unlikely to shift gears, and further, the Belt and Road initiative is just gaining momentum. (news.financializer.com). As reported in the news.

index comp: The Dow Jones Industrial Average DJIA, 0.57% fell 22 points, or 0.1%, to 19,806, according to Market Watch. The Nasdaq Composite Index COMP, 0.86% slipped six points, or 0.1%, to 5,550. The S&P 500 index SPX, 0.66% shed three points, or 0.1%, to 2,268. Halliburton Co. McDonald's Corp. HAL, 3.32% shares fell after posting a sales miss. (news.financializer.com). As reported in the news.

materials sector: The benchmark Shanghai Composite Index rose 0.44 percent to 3,136.77 points, while the Shenzhen Component Index closed 0.71 percent higher at 9,976.19 points, according to Global Times China. The blue-chip CSI 300 index inched up 0.27 percent to 3,364.08 points. Most sectors were largely unchanged but gains were led by the materials sector, underpinned by a broadly weaker US dollar. The Chi Next, the country's NASDAQ equivalent, added 0.35 percent to 1,887.32 points. The People's Bank of China said on Friday it would provide temporary liquidity support for 28 days to several major banks to address seasonal liquidity stress ahead of the Lunar New Year. The mainland's stock markets will be closed from Friday to February 2. (news.financializer.com). As reported in the news.

note y: The yield on the 30-year bond TMUBMUSD30Y, 0.34% shed 5.9 basis points to 2.988%, also its largest drop since Jan. 5, according to Market Watch. The drop snapped a three-day string of gains for the 10- and 30-year Treasury yields. The yield on the 10-year Treasury note TMUBMUSD10Y, 0.53% shed 6.6 basis points to 2.401%, its largest one-day decline since Jan. 5. Meanwhile, the yield on the two-year note TMUBMUSD02Y, 3.27% fell 4.5 basis points to 1.148%, notching its largest two-day drop since June 27. Whether President Trump hits the right tones for the market and implements policies to get investors more excited is the biggest question in relation to the trajectory of rates, they said in a research note published Monday. With a relatively light earnings calendar and Federal Reserve policy makers observing a blackout period ahead of their Feb. 1 policy decision, investors were focused on signs of Trump's legislative agenda for his first 100 days in office, as well as a series of Treasury auctions, said Ian Lyngen and Aaron Kohli, fixed income strategists at BMO Capital Markets. (news.financializer.com). As reported in the news.

stock market: The benchmark Shanghai Composite Index edged up 0.44 percent to 3,136.77 points on Monday, according to Global Times China. The newly formed commission has been launched as China expands its military hardware and hopes to better tap into innovation, investment and production capacity in the civilian sector, according to media reports. Nine stocks rose by the daily limit of 10 percent, according to calculations by the Global Times based on data on financial news portal sina.cn. China announced a top-down policy in July 2016 on the integration of economic and military development, calling for relevant law improvement, synchronization and sharing between the two by 2020. Those already listed on the stock market stand to reap more benefits, although there are also a few matters to be solved, Han Pu, co-founder of Beijing-based jmrh.cn, a decade-old website that has boosted the integration of civilian and military investment and technology. High-tech private-sector companies with products that have military applications can benefit from the national policies and their implementation. (news.financializer.com). As reported in the news.