Managing an accidental FX exposure November 16, 2011 EVERY investment in an international asset requires an equal investment in foreign currency that is often overlooked. What is unappreciated is that movements in foreign exchange markets can nullify gains or amplify losses on the underlying portfolio of international assets. The forte of the currency overlay manager is to safeguard the portfolio’s value against undesirable [...]
Blue-chips remain level after mixed day of economic news November 15, 2011 BRITAIN’S top shares were flat after a roller-coaster session yesterday, with weaker banks and integrated oils just countering a rally by miners as growth and debt crisis worries in the Eurozone offset positive signs on the US economy late in the day. At the close, the FTSE 100 index was down 1.60 points or 0.03 [...]
Wall Street edges up on retail stats November 15, 2011 US stocks rose yesterday, boosted by swift steps toward formation of a new Italian government and stronger-than-expected reports on the US economy. Stocks sensitive to economic growth led the rally, with technology and industrials the best performers. Apple rose more than 2.5 per cent, up for only the second day in the last eight. But [...]
Japan struggles to get a grip on its currency November 15, 2011 THE Japanese central bank, the Bank of Japan (BoJ), has been locked in a seemingly futile battle to weaken its currency, the yen. A strong yen is seen as damaging to Japanese exporters by reducing their competitiveness overseas and eroding the value of repatriated earnings. But despite its past failures, it is likely that the [...]
ECB NEEDS TO COMMIT TO SWISS PLAN November 15, 2011 DESPITE new technocratic governments taking the helm in Greece and Italy, financial markets remain on edge regarding the future of Europe’s monetary union. Serious fiscal reform is unlikely to quickly take hold and may face very stiff opposition from populations already suffering from serious economic hardship. Meanwhile, the European Financial Stability Facility (EFSF) bailout fund [...]
THE TIPSTER November 15, 2011 TRADERS are extremely cautious over the fate of the euro. Despite governmental changes in the Eurozone, sentiment hasn’t appeared to pick up. After Merkel’s comments that the Eurozone is in its worst state since WWII, we should still expect short-term bearishness over the euro and strength in relatively more safe haven currencies such as the [...]
FOREX ANALYST PICKS November 15, 2011 FOREX STRATEGIST JOHN KICKLIGHTER My pick: Short sterling-dollar; long dollar-yen; short euro-yen Expertise: Fundamental analysis with risk management Average time frame of trades: 1 day to 1 week The short setup for dollar-yen below ¥78 from last week worked well enough, but follow through will be troublesome. Now, I’m looking for an intervention reaction should [...]
Accountants can be counted upon to face challenge of climate change November 15, 2011 HEAD OF ACCA UK LATER this month, thousands of climate change experts, government negotiators, campaigners, and business people will be gathering in Durban, South Africa for the seventeenth annual meeting of the signatories to the UN Framework Convention for Climate Change. Or, more simply, COP17. The ultimate objective of each COP (Conference of the Parties) [...]
FTSE falls as Italy’s bond sale reduces investor confidence November 14, 2011 BRITAIN’S top shares fell yesterday as the latest Italian bond auction dented investor confidence in the ability of new governments in Italy and Greece to tackle Europe’s debt crisis. An Italian five-year government bond auction delivered an early market view on former European Commissioner Mario Monti’s leadership after he was installed as Prime Minister of [...]
US stocks dented by Europe worries November 14, 2011 US stocks fell yesterday as rising bond yields in Italy and other Eurozone countries reminded investors that despite changes in governments, the region’s debt crisis could still spin out of control. Banks posted the largest losses, but overall volume was unusually weak. The KBW bank index dropped 2.5 per cent, with Bank of New York [...]
