Why this is a disqualifying offence for a value investor December 9, 2016 Some people apparently just will not be told. While past performance is no guide to the future, despite all the evidence a value-based approach outperforms over time, investors’ money is increasingly clustering in more non-value-oriented offerings – sometimes known as ‘growth’ but probably more accurately called ‘momentum’ funds. The current situation is starkly illustrated by the following [...]
Spreadbetters hit again as German regulator announces a clampdown December 8, 2016 Times got tougher for spreadbetters today as the German regulator revealed plans for more red tape for the market. Bafin's announcement that it is preparing to apply more rules to the market for contracts for difference (CFDs) comes just two days after the Financial Conduct Authority (FCA) unveiled similar plans. In particular, Bafin is concerned price fluctuations might [...]
Oil rises ahead of weekend meeting between Opec and non-Opec producers December 8, 2016 Oil markets were choppy today as traders got jittery ahead of a weekend meeting of Opec and non-Opec producers. Prices dipped in London afternoon trading after Russian news agency Tass reported the meeting, due to be held this Saturday in Vienna, could be postponed. However, a Russian energy ministry spokeswoman later said there were no [...]
Creo Medical to IPO with £20m in fresh funding December 8, 2016 Creo Medical – a small biotech company specialising in surgical endoscopy – will float on the London junior market tomorrow after raising some £20m from investors. The shares will begin trading on Friday, priced at 76p, giving Creo a market capitalisation of £61.2m. The raising, with about a fifth coming from existing backers, will be used [...]
A short history of investing in gold – and what to expect for 2017 December 8, 2016 | City Talk Gold is coveted by investors for its rarity. As a precious metal with limited supply, it is seen as a store of value when the real value of other assets, and currencies, can be manipulated. But fundamentally, its high worth is underpinned by its usefulness and attractiveness. Not only is it highly malleable but it [...]
The euro hits three-week highs against the dollar ahead of the ECB’s interest rate and quantitative easing decision December 8, 2016 The European Central Bank (ECB) is the only game in town today, as stocks rise across Europe and the euro hits a three-week high in anticipation of this afternoon’s announcement of monetary policy. Against the dollar the euro had broken through $1.08 at the time of publication, after hitting lows in the last month of [...]
Bank shares and stress tests: the value investor’s verdict December 8, 2016 The Bank of England’s latest stress tests of the UK banking system attracted many column inches of space in the newspapers last week. The aim was to calculate whether these institutions would have enough capital to withstand certain grim scenarios. Moving away from some of the inflammatory headlines, it is worth looking in more detail [...]
OPEC’s celebrated and unexpected deal has papered over the market’s cracks December 8, 2016 The outcome of the Vienna meeting came as a pleasant surprise to oil markets. A deal had been hammered out and, despite the resistance, OPEC and Non-OPEC producers had agreed to cut a total of 1.8mbpd. Saudi Arabia − suffering from a major dent in its economy− has agreed to the largest cut. OPEC producers [...]
Trading platforms must bet on a stable outcome December 8, 2016 Spreadbetters experienced the most modest of recoveries yesterday, with shares in IG Group gaining nearly six per cent, Plus500 climbing around three per cent and CMC Markets edging up just 1.3 per cent. Investors, given 24-hours to reflect on the previous day’s bloodbath, clearly did not find reason to significantly alter their view of the [...]
The world is about to reach peak diamond with supply set to sparkle before entering a deficit after 2019 December 7, 2016 Forget peak oil, the world is about to reach peak diamond – and it's coming soon. Global rough diamond production will reach a pinnacle in three years before entering into a supply deficit by 2020, according to research from consulting group GlobalData. Rough diamond production is set to rise from 127m carats last year to 134.5m carats [...]