CHINA BUBBLE IS A RISK FOR YEN SHORTS January 12, 2010 BORIS SCHLOSSBERG DIRECTOR OF CURRENCY RESEARCH, GFT ASK FX strategists what their favourite trade for 2010 is and the chances are most will say long dollar-yen. The conventional wisdom in the forex market – despite last Friday’s disappointing US jobs data – is that US short-term rates will inch higher. Their choice of trade is [...]
Revaluation of the yuan bad news for the Aussie dollar January 12, 2010 PRESSURE has been building on China to let its currency, the yuan, appreciate against the US dollar, to which it is pegged. This week, these calls only intensified after China posted strong trade data, putting the country firmly on course to usurp Germany’s position as the world’s number one exporter. But while Beijing so far [...]
THE TIPSTER January 12, 2010 WHEN it comes to economic growth, China has been stealing the limelight in recent years. But India’s economy is also forecast to power ahead in 2010, with the IMF forecasting an annual growth rate of 6.4 per cent. The country’s more liberal environment (compared to China’s) should encourage investors into Indian assets and boost the [...]
Disappointing results from Alcoa rock mining stocks January 12, 2010 BRITAIN’S top share index closed 0.7 per cent lower yesterday as commodities and banks led the retreat over concerns that China’s move to tighten banks’ reserve requirements may slow global economic recovery. The FTSE 100 index closed down 39.36 points at 5,498.71, dropping back after hitting a 16-month intraday peak at 5,600.48 on Monday. China’s [...]
Banking levy hangs over S&P financials January 12, 2010 US stocks slid in a broad sell-off yesterday as investors pummeled financials on concerns about a potential government levy on banks, while Alcoa’s disappointing results tempered optimism about the economic recovery. The benchmark S&P 500 broke a six-day streak of gains as banks led the financial sector lower, sending the KBW bank index down almost [...]
Even in 2010, some gay lawyers say coming out can damage your career January 12, 2010 AN article counselling young gay lawyers on the tricky matters of etiquette for coming out at work includes the following advice: “Do take your significant other to the firm’s Christmas party… probably best to avoid getting heroically drunk and snogging to slow numbers”. Perhaps it’s no surprise that it has proved a controversial New Year [...]
FINES ALONE WON’T MAKE FSA CREDIBLE January 12, 2010 ROBERT FALKNER REED SMITH LLP LAST year the FSA began talking the talk, with a number of policy speeches about the need for enforcement to “deliver credible deterrence”. Indeed, 2009 was a record year for bank fines. FSA rules for the registration of directors and senior managers – persons holding significant influence functions – for [...]
UK insurers flourishing following a benign 2009 January 11, 2010 BAD weather is normally bad news for insurers, as householders claim for snow, flood and wind-induced problems with their homes. However, despite roofs leaking and boilers breaking down all over the UK at the moment , the non-life insurance sector is actually looking pretty attractive for investors. The insurance sector is poised to deliver returns [...]
JAPAN CAN’T RESCUE ITSELF BY SPENDING January 11, 2010 DAVID MORRISON CFD MARKET STRATEGIST, GFT LAST month I pointed out that the Nikkei’s chart looked terrible and said that Japan’s economic fundamentals were grim – national debt is around 200 per cent of GDP (and rising) and the country’s demographics look terrible. While other major indices had ground steadily higher following a shallow summer [...]
Orange futures still promising juicy returns January 11, 2010 AS TEMPERATURES plunged across Europe and much of the US last week, the price of orange juice futures was far from frozen. Bitterly cold temperatures and a rare frost in Florida sent the price of March 2010 futures surging to a two-year high of 151.15 cents. The contract surged as much as 18 per cent [...]
