Investors should expect a perfect storm of global political instability November 19, 2012 VIOLENCE in Israel and Gaza may seem to be a solely political (or geopolitical) issue. But politics has implications for all investments, and particularly sovereign debt. Governments drive policy and policy drives the bond markets. Instability used to be more of an issue for emerging markets. But we are now entering a new age of [...]
The poor are growing richer – and it’s nothing to do with redistribution November 19, 2012 IT’S fashionable to suggest that economic reform under Margaret Thatcher exposed us to a form of capitalism where “the rich have got richer and the poor have got poorer”. We’re told this has led to increasing inequality, which has damaged our economic and social fabric and that only redistributive policies – in the form of [...]
How shareholders shaped the Xstrata Glencore merger November 19, 2012 SHAREHOLDERS in Xstrata, the mining company, vote today on whether to approve its mega-merger with Glencore, the commodities group. If passed, the deal will create a £50bn mining and global commodities marketing giant. But reaching this point hasn’t been easy. At nearly every step of over ten months of negotiations, shareholders have successfully made their [...]
As the conflict in Israel and Gaza continues, can the situation be effectively contained? November 19, 2012 YES Adam Hug This crisis can be contained but it will take more than pressuring Hamas to come to ceasefire, or pressing Israel for restraint and an end to its current rules of engagement. The international community must set out a plan to securely relieve the blockade of Gaza, allowing consistent movement across the Rafah [...]
Rapid responses November 19, 2012 Easing the burden [Re: We must ditch unfair loopholes – and then cut tax overall, yesterday] You have to ask what purpose corporation tax serves. Companies are mere constructs for the purposes of providing services to the market. By taxing them, the government is penalising a justifiable and desirable activity. In the end, the consumer [...]
Potential problems in the oil pipeline remain November 19, 2012 NOT long ago, the peak oil consensus painted a picture of a future of uncontrollably spiking oil prices. The rapid rise of developing market demand would lead to a squeeze on oil markets and surging oil prices. But as oil and gas producers can attest, many of these forecasts have come to nothing – a [...]
How to manage your risk by using a pairs strategy November 19, 2012 MARKETS are fraught with uncertainty: the fiscal cliff, conflict in the Middle East, the Eurozone crisis, and slowing growth in China are just some of the problems that could potentially derail equity markets. Therefore, traders must use risk management techniques to mitigate their risk exposure. But if investors suddenly sought safety by moving their money [...]
The Tipster | Taking candy from a baby November 19, 2012 TRADING shares in Mothercare has been child’s play over the last 12 months, as they have surged over 120 per cent. Chief executive Simon Calver, who was appointed in April, has implemented a successful turnaround strategy, appeasing the concerns of worried investors. The retailer delivers its interim statement on Thursday, and traders will want to [...]
Seasonal bonus for shrewd traders November 19, 2012 CHRISTMAS is close and there is a lot of Bah Humbug in the air. The FTSE 100 index is 5 per cent off its recent highs. The governor of the Bank of England Sir Mervyn King said that the economy may contract again. As inflation squeezes real wages, and public spending faces more cuts, it [...]
Analyst picks for 20 November 2012 November 19, 2012 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Long dollar-yen, short Aussie-New Zealand dollar. Expertise: Fundamental and technical analysis. Average time frame of trades: 1 day to 1 week. Last week’s trades (short Aussie-dollar, long sterling-yen, long dollar-yen) worked well. However, heavy fundamentals and the Thanksgiving holiday make for confusing times ahead. To curb risk, I will [...]
