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

bench marks: The technology-heavy index was down 2.8 per cent, according to The Toronto Star. The S&P 500 fell 2 per cent, and the Dow Jones industrial average dropped 2.3 per cent. The Nasdaq composite was one of the hardest-hit among the major bench marks. Apple's shares declined 5 per cent after one of its suppliers, Lumentum, slashed its fiscal outlook for the current quarter and said it had received a request from one of its largest customers to reduce shipments. Apple's shares declined 5 per cent after one of its suppliers, Lumentum, slashed its fiscal outlook for the current quarter and said it had received a request from one of its largest customers to reduce shipments. JOSH EDELSON / AFP/GETTY IMAGES The S&P/TSX composite index closed down 118.04 points to 15,156.40 after hitting a high of 15,263.74. (news.financializer.com). As reported in the news.

finance: In September, for the 14th month in a row, the total value of housing finance commitments fell in trend terms, according to The Guardian. That is still some way behind the 20 consecutive falls that occurred after the end of the first home-buyer boost in response to the GFC. But given unemployment has been falling during this time and the overall economy is growing solidly, it is a rather unprecedented length of time for people to be withdrawing from the housing market. But for those hoping for improved affordability, the news is less good as average home loans remain at near record levels. Sydney house prices see biggest fall for 30 years, dragging rest of Australia down Read more There does seem to be somewhat of a slowing of the fall especially by investors but in annual terms the fall continues to grow. Over the past five years, there has only been six months where there was an increase in the number of home loans taken out in Western Australia. It's now down 12.8% compared with September last year the biggest annual fall since August 2010, and the 8% fall for owner-occupier finance commitments is the biggest since January 2011 And given the link between housing finance and house prices, this continuing fall suggests no improvement in housing prices until well into next year While around 70% of the fall from the recent peak of housing finance in July 2017 is due to investors leaving the market, it is clear that owner-occupiers have followed both in terms of number of commitments and the value of the finance that is being sought And while it is easy to suggest this is just a Sydney and Melbourne phenomenon, the reality is the number of people taking out home loan mortgages has been falling or staying flat pretty much in every state and territory over the past year Western Australia has been the state that has suffered the biggest falls, even if the number of home loans taken out has risen for the past two months. (news.financializer.com). As reported in the news.

government: While the legislation is unlikely to be debated in the House of Representatives, where the government controls the agenda, the move could become reality if Labor wins the next election, according to Nine News Australia. Labor senator Jenny McAllister, who was behind the private bill, said the government had no plan to tackle income stagnation and rising inequality. To improve your experience update it here News National Labor pushing for more inequality research11 40am Nov 12, 2018Facebook Tweet Mail The Productivity Commission would have its research scope expanded to include inequality's effects on Australia's economy under draft laws which have passed the Senate. We need to change our institutional arrangements so that now and forever these issues cannot be ignored, Senator McAllister told parliament on Monday. It would also establish a framework to regularly report on economic inequality. Under the plan, policy guidelines for the commission's functions would require consideration of inequality. (news.financializer.com). As reported in the news.

hamas militants: In Israel, the national rescue service said at least 20 people were wounded, including a 19-year-old soldier and a 60-year-old woman who were in critical condition, according to The Toronto Star. Palestinian mourners carry the bodies of two of the seven Hamas militants who were killed in an Israeli raid late Sunday, during their funerals in Khan Younis, southern Gaza Strip, Monday. Palestinian officials said at least three people, including two militants, were killed by Israeli fire and nine were wounded, and an Israeli airstrike destroyed the ruling Hamas group's TV station. Adel Hana / The Associated Press The fighting cast doubt over recent understandings brokered by Egypt and UN officials to reduce tensions. The United Nations said it was working with Egypt to broker a halt in the violence. Just a day earlier, Israel's prime minister defended those understandings, saying he was doing everything possible to avoid another war. (news.financializer.com). As reported in the news.

investors: One might say the market's gentle to-and-fro is exactly what you'd expect, according to The Guardian. Investors are as confused as everybody else about the eventual outcome. Sterling fell a little on Monday morning but the instinct to celebrate anything that looks like progress towards an agreed deal returned in the afternoon when Michel Barnier, the EU's chief negotiator, was reported to have said the main elements of an exit treaty are ready. And so they cling to the idea, which has been the consensus opinion for about a year, that some form of grand fudge will prevail in the end and that an orderly Brexit will happen next March. For a start, the odds on a chaotic no-deal exit should be shorter. Yet, if you believe the parliamentary arithmetic is against May, investors should be pricing up alternative outcomes right now. (news.financializer.com). As reported in the news.

issue: The survey conducted for The Australian found 45 per cent of voters preferred Labor's approach to the issue, against 35 per cent for the government, according to Nine News Australia. Another 20 per cent were undecided, the poll published on Tuesday found. To improve your experience update it here News National Labor housing approach leading coalition7 02am Nov 13, Australians believe federal Labor has a better policy approach towards housing affordability than the coalition, a Newspoll has revealed. But despite Labor's lead overall, Newspoll also recorded a dip in support for the opposition's plan to reform tax breaks for housing investors. According to the poll, 47 per cent of voters are now in favour of the plan, down from 54 per cent in April. Labor wants to retain negative gearing only for newly built homes - with the policy grandfathered so it won't apply to existing investors - along with changes to capital gains tax. (news.financializer.com). As reported in the news.

ressa: In many ways the government's attacks against Rappler have made it very clear to us exactly who we are, what our identity is, and for our young reporters who are on the ground, how clear and necessary our mission is today, Ressa told CNN's Kristie Lu Stout from Paris, where she is in town for a peace forum, according to CNN. Our democracy is in transition, said Ressa, a former CNN bureau chief and award-winning journalist. Ressa vowed to fight the charges from the Philippines Department of Justice for tax evasion, which many see as a thinly veiled attempt by President Rodrigo Duterte to muzzle the investigative news site. The mission of journalism has never been needed as much as it is now, and we'll continue doing these stories. In January, the Philippines Securities and Exchange Commission SEC temporarily revoked Rappler's registration on the basis that it had violated the country's constitution over foreign ownership rules. Fearless reporting' under fire Read More Rappler has been a consistent thorn in the side of the Duterte administration, closely documenting its so-called war on drugs, a widespread crackdown that has been condemned for encouraging thousands of extrajudicial killings. (news.financializer.com). As reported in the news.

japanese company: The Japanese company said Monday it plans to sell 2.4 trillion yen 21 billion worth of stock in its mobile telecoms unit, according to CNN. Soft Bank's IPO plans Soft Bank is gearing up for one of the world's biggest IPOs ever. (news.financializer.com). As reported in the news.

lambert butler: The tobacco company's share price has slumped by almost 40% over the past year, putting it on track for its third annual decline in the past two decades, according to The Guardian. The share price of Imperial Brands, the maker of products including Lambert & Butler, Davidoff, Gauloises and John Player Special, dropped by more than 3%. The 25bn company, the No 1 player in the UK market, had about 600m stripped from its market value. Shares in BAT, the sixth-biggest company in the FTSE 100 and maker of brands including Lucky Strike, Dunhill, Rothmans and Benson & Hedges, fell by 10.6%, sending its market value plummeting from 76bn at close on Friday to 68bn at the end of trading on Monday. American tobacco companies also suffered. The US Food and Drug Administration will this week impose a ban on the sale of most flavoured e-cigarettes in tens of thousands of convenience stores and petrol stations across the US. The agency, which is trying to curb the huge increase in vaping among teenagers, will also bring in age-verification requirements for online sales. Philip Morris International, the manufacturer of the world's leading cigarette brand, Marlboro, and Altria Group, which runs Philip Morris brands including Marlboro in the US, were down by 1% and 1.9% respectively by lunchtime on the New York stock exchange. (news.financializer.com). As reported in the news.

singapore: Trade Minister Simon Birmingham has talked down concerns the agreement could be stalled until after the next election, according to Nine News Australia. I don't think that's at all likely, he told reporters in Singapore on Tuesday. To improve your experience update it here News National Minister tips Indonesia deal within months8 39am Nov 13, remains confident of signing a free-trade deal with Indonesia within months, despite tensions over the potential move of an embassy to Jerusalem. Senator Birmingham also quashed concerns the deal could be sunk once Indonesians go to the polls next April. We want to see it signed, Indonesia wants to see it signed, I'm confident we will see it signed before then, the minister said. Indonesia's opposition leader has been campaigning hard on national issues such as import controls. (news.financializer.com). As reported in the news.

sylvain charlebois: He said a recent Dalhousie survey suggests younger generations are choosing to dine out more frequently, according to The Toronto Star. Almost 40 per cent of Canadian consumers 38 years old and under do so at least once or twice a week. Sylvain Charlebois specializes in food distribution and policy. A Halifax university professor says our appetite for fast food and dining out is eating into farmers' profits. That includes restaurants, grab-and-go options and other portable food offerings. SAUL LOEB/AFP/Getty Images Charlebois said other surveys have suggested about 35 per cent of the average Canadian food budget is spent on what people consume away from home. (news.financializer.com). As reported in the news.

control: The Dow soared 545 points Wednesday after Democrats won control of the House from the Republicans, according to CNN. Divided government Wall Street initially celebrated after the midterm election delivered divided government. (news.financializer.com). As reported in the news.

oil companies: Western Canada's oil companies are now in the same boat thanks to production gains that have not been matched by export pipeline capacity gains, according to The Toronto Star. Pumpjacks are shown pumping crude oil near Halkirk, Alta., in 2007. Canadian grain farmers experienced that situation in 2013 and again last winter when their harvest outstripped the transport capacity of Canada's rail companies. Larry Mac Dougal / THE CANADIAN PRESS Like those farmers, oil producers have filled storage to bursting while they wait for a solution to appear. Estimates on the cost to the economy vary wildly, but the Canadian Association of Petroleum Producers officially estimates the impact as at least 13 billion in the first 10 months of 2018. The price discounts or differentials that had mainly affected heavy oil have spread to light oil and upgraded synthetic oilsands crude as pipeline space tightens. (news.financializer.com). As reported in the news.

week: The prime minister confirmed he will not sign the deal when he meets President Joko Widodo at a series of summits and high-level meetings this week, according to Nine News Australia. Indonesia is upset about Australia's potential move of an embassy to Jerusalem, with reports the deal is on hold until the issue is sorted out. To improve your experience update it here News National No rush on Indonesian trade deal Morrison2 20pm Nov 12, 2018Facebook Tweet MailA major trade deal with Indonesia was due to be signed before Christmas, but Scott Morrison now says there is no rush to get it done. The intention was the trade ministers would be able to deal with that by the end of the year, but there's no hurry, Mr Morrison told Bloomberg on Monday. Mr Morrison will attend the East Asia Summit in Singapore and APEC in Papua New Guinea this week to talk about trade, regional security and counter terrorism, in what will be his first summit season as leader. Australia doesn't conflate these issues. (news.financializer.com). As reported in the news.

fund: Mr Costello will now remain chairman of the multi-billion dollar Future Fund until 2024, Treasurer Josh Frydenberg and Finance Mathias Cormann announced on Monday, according to Nine News Australia. The former MP helped set up the fund - which manages money to pay for the future superannuation payments of retired civil servants - in 2006 when he was treasurer in the Howard government. To improve your experience update it here News National Costello to stay at Future Fund9 33am Nov 12, Liberal treasurer Peter Costello has been reappointed as chair of Australia's sovereign wealth fund for another five years. He joined its board in 2009 and became chair in 2014. But opposition treasury spokesman Chris Bowen has blasted the coalition for not consulting Labor about Mr Costello's appointment, deeming the step entirely inappropriate ahead of the election. During that time, the fund's investments have more than doubled from 67.6 billion to 148.8 billion. (news.financializer.com). As reported in the news.

oil contracts: Mexican President-elect Andres Manuel L pez Obrador celebrates with his supporters in July, according to The Toronto Star. Pedro Pardo / Agence France-Presse Instead, Lopez Obrador will work to calm investors and business leaders who have been anxious about some of his promises, such as an audit of oil contracts, said Tatiana Clouthier, the daughter of a former pro-business presidential candidate who has crossed to the opposite side of the political spectrum to manage Lopez Obrador's campaign. Andres Manuel Lopez Obrador has a clear message to investors the leftist presidential candidate who looks poised for a landslide victory in the July 1 election won't rip up the country's laws. We need them, they need us, Clouthier said in an interview with Bloomberg, referring to business leaders and investors the candidate has been meeting with. I think Andres Manuel knows that. The worst thing that can happen for anyone winning the presidency at this moment is that the market shifts, and in that sense you need to give them security. (news.financializer.com). As reported in the news.

sunday night: Julie Bishop is speaking at a World Economic Forum in Dubai on Sunday night and is set to tell the crowd how the current international system must be reformed and protected, according to Nine News Australia. The comments come after the United States under President Donald Trump has raised tariffs, renegotiated trade deals and started a trade war with China. To improve your experience update it here News National Bishop warns world against trade battles7 46pm Nov 11, protectionism and nationalism must be reined in instead of allowing the international system to be thrown into chaos and conflict Australia's former foreign minister says. There are challenges to the existing international rules-based order, as some nations and policymakers seek to maximise their advantages and adopt a more assertive zero-sum approach to engagement with other nations, Ms Bishop will say on Sunday. Any such effort would lead to chaos and conflict, to no one's advantage. There is a harder unilateral edge, however, there is not a concerted effort to abandon or overthrow this order. (news.financializer.com). As reported in the news.

pasini: But after the general elections in early March the economy started to slow, and in the most recent months it has ground to a halt, according to The Guardian. After three years of optimum growth, between June and September our economy slowed to 0.1% down from 1.3% in Q1 and 0.6% in Q2 . This came as a shock, said Pasini, who also heads Brescia's industrial association. When Italy finally emerged from its crushing triple-dip recession in 2015, Brescia, an important European industrial hub some 50 miles east of Milan, enjoyed uninterrupted growth. Businesses are worried; this slowdown could be particularly dangerous in 2019, not just for Brescia but for the entire country, as our region is considered a driver for the rest of the economy. Fear is mounting among business chiefs that Italy, which is saddled with a public debt worth more than 130% of GDP, could slip back into recession. The slowdown in Brescia has coincided with economic stagnation across Italy, an indication that the political and fiscal uncertainty created by the country's coalition government, made up of the anti-establishment Five Star Movement M5S and the far-right League, is having an effect. (news.financializer.com). As reported in the news.

statistics: O'Donnell tells The Beat that despite economic statistics voters overwhelmingly chose to reject the party that used to call itself the Republican Party, that is now the Trump , according to MSNBC. O'Donnell tells The Beat that despite economic statistics voters overwhelmingly chose to reject the party that used to call itself the Republican Party, that is now the Trump O'Donnell calls out media for Trump's birther O'Donnell calls out media for Trump's birther of The Last Word on MSNBC, Lawrence O'Donnell, joins Ari Melber to discuss how Democrats crushed Donald Trump with a blue wave that won them more House seats than any party has won in 40 years. (news.financializer.com). As reported in the news.

week: The Canadian markets ended an overall positive week with a further drop helped by lower oil prices, according to The Toronto Star. Aaron Vincent Elkaim / THE CANADIAN PRESS The December crude contract was down 48 cents at 60.19 U.S. per barrel to the lowest level since February. The S&P/TSX composite index closed down 83.03 points at 15,274.44. but up from 15,150.15 a week ago. But the market decrease was about more than just oil, says Cavan Yie, a portfolio manager at Manulife Asset Management. It has shown up in slowing revenue growth, higher than expected operating costs and disappointing margin performance. He said the third quarter hasn't been a strong earning season. (news.financializer.com). As reported in the news.

car purchases: But growth has begun to falter as the boost to the economy from the warm weather over the summer and England's performance at the World Cup has fizzled out, according to The Guardian. GDP growth flatlined in August and September, with signs of weakness in business spending, retail sales and a fall in domestic car purchases. Philip Hammond claims strong growth, but it's mostly froth Read more In what is likely to be a peak for the economy this year, the latest snapshot from the Office for National Statistics ONS showed GDP growth in the three months to the end of September was 0.6% the fastest expansion since the final quarter of 2016. City economists had forecast growth of 0.1% in September, although the UK economy unexpectedly stagnated for the second month in a row, as new car registrations fell by a fifth in the worst September for the motor trade in a decade. The latest figures reveal a contraction in corporate spending of 1.2% during the third quarter, which was the first time business investment has slipped for three consecutive quarters since the global financial crisis a decade ago. Although there are gathering signs of weakness as the country braces for Brexit on 29 March next year, on an annual basis, the British economy grew by 1.5%. Philip Hammond, the chancellor, said on a visit to the Fuller's brewery in London just two weeks after the budget that the growth rate was proof of the underlying strength in our economy . There are however mounting signs of underlying weakness as Theresa May struggles to agree a Brexit deal with the EU, and business investment dropped at the fastest rate since early 2016. (news.financializer.com). As reported in the news.

end: Very insulting, but perhaps Europe should first pay its fair share of NATO, which the U.S. subsidizes greatly, Trump tweeted minutes after landing in France, according to CNN. He is set to spend the weekend in Paris to commemorate the centennial of the end of World War I. Tuesday on Europe 1 radio, Macron called for a real European army within the European Union, according to AFP. We have to protect ourselves with respect to China, Russia and even the United States of America, Macron said. President Macron of France has just suggested that Europe build its own military in order to protect itself from the U.S., China and Russia. Macron also suggested that since the start of Trump's presidency, the US has been seen as a less reliable ally. Macron has been advocating a similar position for months.A senior French official said Friday night that Trump took Macron's words out out of context. Read More When I see President Trump announcing that he's quitting a major disarmament treaty which was formed after the 1980s euro-missile crisis that hit Europe, who is the main victim Europe and its security, he said. (news.financializer.com). As reported in the news.

fentanyl imports: The officials were set to discuss issues ranging from the South China Sea to human rights and cooperation on issues involving countries like Afghanistan and Iran, US Ambassador to China Terry Branstad told reporters Thursday, according to CNN. He added that the US was looking to achieve progress on North Korea, discuss strategic security and reduce fentanyl imports to the US. Iranian foreign minister slams Pompeo over Yemen comments Chinese Defense Minister Wei Fenghe and Mattis warned against conflict, while comments by top Chinese diplomat Yang Jiechi and Pompeo underscored divisions between the world's two largest economies, now engaged in a trade war. Secretary of State Mike Pompeo and Defense Secretary James Mattis spoke to the press alongside their Chinese counterparts after the four officials held a security and diplomatic dialogue meant to prepare their leaders for a meeting at the Group of 20 summit in Argentina later this month. Pompeo said the US side had been forthright in addressing significant differences between our nations and laid out the Trump administration's larger goal. Rather, we want to make sure China acts responsibly and fairly. The US is not pursuing a cold war or containment policy with China, Pompeo said. (news.financializer.com). As reported in the news.

hm revenue: Several retailers including Tesco, Sainsbury's and the Co-op had fought in the courts against the tax rules set by the Valuation Office Agency the arm of HM Revenue and Customs responsible for setting business rates which had claimed that ATMs should be additionally assessed, according to The Guardian. The court verdict means the supermarket chains are in line for a multimillion pound windfall from tax refunds, which the property advisory company Colliers estimates is worth about 500m. The court of appeal ruled on Friday that cash machines located both inside and outside stores should not be liable for additional business rates, which are a form of property tax on businesses collected by the government. The case dates back to a 2013 decision by the government to charge rates on hole-in-the-wall cash machines, which was backdated to 2010. A spokesperson for the Co-op suggested that the victory would help it keep cash machines at its stores, helping people who rely on them as high street banks shut branches up and down the country. Although the refund is small compared to the 1.8bn annual business rates liability for the four biggest supermarket firms Tesco, Sainsbury's, Asda and Morrisons it does however come at a time when high street retailers are facing growing pressure from online rivals who pay less in tax. (news.financializer.com). As reported in the news.

investors service: The company's debt is trading like it's speculative grade, as investors worry about how higher steel tariffs and slowing sales will weigh on its profits, according to The Toronto Star. Ford is rated one step above junk by Moody's Investors Service and two steps by S&P Global Ratings. That's what the bond market is saying. Ford is rated one step above junk by Moody's Investors Service and two steps by S&P Global Ratings. The automaker has more than 150 billion U.S. of short- and long-term debt globally, and is one of the 15 biggest corporate bond issuers in the U.S. outside the financial sector. Gene J. Puskar / The Associated Press file photo Any downgrade could be painful for bond investors, and for the company. (news.financializer.com). As reported in the news.

oil prices: Oil prices fell nearly 1.0 per cent on Friday, and have now seen the longest stretch of daily declines since 1984, on rising global supply and evidence of a slowing world economy, according to Nine News Australia. The United States formally imposed punitive sanctions on Iran this week, but granted eight countries temporary waivers allowing them to keep buying oil from the Islamic Republic. To improve your experience update it here News World China worries send Wall Street tumbling9 06am Nov 10, Street's three major stock indexes lost ground on Friday, after a week of recovery from the October sell-off, as oil prices fell further and more evidence of a slowing Chinese economy was reported. Oil is spooking the market. The Dow Jones Industrial Average fell 201.92 points, or 0.77 per cent, to 25,989.3, the S&P 500 lost 25.82 points, or 0.92 per cent, to 2,781.01 and the Nasdaq Composite dropped 123.98 points, or 1.65 per cent, to 7,406.90. If oil prices are going to go lower that's another sign that the global economy is going to slow its growth, said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina. (news.financializer.com). As reported in the news.