BEST OF THE BROKERS October 31, 2011 INVESTEC Goldman Sachs rates Investec “buy” with a 533p target price as it believes the wealth management group has been unjustifiably hurt by risk aversion, despite shifting its business model towards asset and wealth management, which give it more stable income streams and now constitute about half its revenues. About 70 per cent of its [...]
Weaker mining and energy prices drag the FTSE down October 31, 2011 BRITAIN’S top share index fellback yesterday, led by weaker miners and energy issues, as commodity prices retreated under the influence of a firmer dollar and worries over demand from China, with banks also under pressure after recent gains. Miners and integrated oil stocks took over 30 points off the UK blue chip index, as they [...]
Winning month in US ends on a low October 31, 2011 WALL Street closed its best month in 20 years on a down note yesterday as the failure of trading firm MF Global Holdings and new worries about Europe’s debt crisis hammered financial shares. In a sign that Europe’s woes were far from over, Italian and Spanish bond yields soared, prompting the European Central Bank to [...]
Violence is down and partly thanks to trade: A scientist explains his bold new thesis October 31, 2011 Q.CAN YOU DISTIL THE ARGUMENT OF YOUR NEW BOOK? A.Violence has declined, on many scales of time and magnitude, with reductions unfolding over periods stretching from millennia down to just a few years. That’s true for everything from warfare and genocide to our treatment of children and animals. What is some of the evidence for [...]
Migration policy needs a rest, not constant change October 31, 2011 IT IS no secret that the government’s work permit policy, especially the cap on migration, has not always been welcomed by business. Economists and employers can see that a strong economy comes from a strong, flexible workforce. The skills needed by UK businesses are not always available here, so employers need to look abroad. And [...]
Easy credit may teach hard economic lessons October 31, 2011 ONE thing about public opinion I fail to understand is this: people understand that easy credit was a cause of the financial crisis, so why are policies that make credit easier popular? George Osborne’s credit easing plans for small businesses are noble in that these firms are indeed the lifeblood of the economy. But it [...]
RAPID RESPONSES October 31, 2011 Fencing the banks Instead of mounting a legal challenge to the capital rules proposed by the Vickers Commission [EU in bid to veto UK bank reform], surely the EU should instead be considering a similar overhaul for all the bloc’s banks. Ring-fencing investment banking from retail banking would create a more stable financial system which, [...]
Build profits by going short on infrastructure October 31, 2011 PRIME Minister David Cameron has been keenly reiterating the coalition government’s commitment to infrastructure spending. Although he isn’t an open follower of John Maynard Keynes, the idea of this kind of deficit spending designed to stimulate aggregate demand came from the Cambridge economist’s mind. However, traders should stay cynical. Recession left the cupboard bare and [...]
EQUITY BEARS SORE BUT MAY GET LAST BITE October 31, 2011 YESTERDAY, global equity markets were giving back some of the extraordinary gains made during October. Yet despite this, the month-long rally has been impressive while extremely unpleasant for stock market bears. Technically, a number of major stock indices broke through significant resistance levels. By the end of last week the FTSE, S&P and Dow had [...]
That is just too much information October 31, 2011 LOOKING at the market reaction to recent events, traders could be forgiven for sitting in front of their screens, scratching their heads, unable to make heads or tails of anything. Whispers through the grapevine cause big moves in price, but official statements barely register. Perhaps traders are paying heed to the old rule of thumb [...]
