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Aug 9, 2011

Up down and everything in between as Russian markets await Bernanke: RT Business News



US Federal Reserve Chairman Ben Bernanke  (AFP Photo / Files / Mandel Ngan)
 
Russian equities markets went on a wild ride through Tuesday trading with the MICEX closing nearly back to the starting mark after, at some stages, being as much as 7% lower.
The overnight slump on Wall street flowed into Asian trade with major indices sharply lower before speculation about government intervention in Taiwan and Korea saw stocks reverse with the ASX closing higher in Sydney and Shanghai and Tokyo rebounding sharply to leave only Hong Kong wearing a 5% hammering.
Russian stocks started sharply down, built back to square within the hour and then proceeded to fall as much as 6.5% on the MICEX before rebounding late in the day to actually be as much as 1% higher within an hour of the close.
That was on the back of wild swings in Europe, buttressed by swings in crude prices, and the increasing expectation that US Federal reserve Chairman Ben Bernanke will make some accommodation for market sentiment this evening when he addresses the Federal Open Market Committee at 22:15 Moscow time.
Investcafe analyst, Anton Safonov, said any announcement of an impending resumption of quantitative easing may buoy equities markets.
“There can barely be something more important for market players at the moment than the results of the meeting at the U.S. Federal Reserve. At 22.15 Ben Bernanke will tell us about the state of the U.S. economy, its perspectives, and also about the actions of the Federal Reserve. Everybody is expecting the head of the Federal Reserve to at least make a hint about a new round of QE, and this will drive optimism back to the markets. To my mind, the launch of new quantitative easing will barely change the economic situation, as it didn’t succeed last time, but the equity market will certainly feel relief.”
Head of analysts at FOREX Club, Andrey Dirgin, said a key factor locally was the pressure on the rouble which lost a further 2% as crude prices slumped on global markets.
As global stock markets slumped in panic, pulling currency and oil down, Moscow investors hedging their capital with dollar and euro currency amid rising fears that cheap oil could lead to a devaluation of the Russian currency. Now we see that Euro bounced back on the back of news from Europe where the main attention is drawn to the ECB decision to buy Italian and Spanish bonds. The Oil market avalanche intensified turmoil on Russian Stock markets.Investors turned to sell rouble in order to save their capital in other currencies such as dollar or euro.
I think CB will shortly come up with the decision on monetary support through series of interventions, however, I doubt that this measures could be positive for already burning Russian Stock exchanges. The dollar has jumped up over 30 roubles rate and Euro is already worth 42.8 roubles. The main signal for slide of the Russian currency is falling oil prices which have already reached $101 per barrel of Brent oil. Funds in correspondent accounts of credit institutions at the Bank of Russia decreased by almost 20% to 642 billion roubles in one week, adding pressure to the rouble. I assume the further developments will depend on global markets.”
Pavel Andreev, Head of FX markets at BCS agreed the slump in the rouble was attributable to the oil price, but expected that there would be some intervention if it looked like continuing.
“Rouble exchange rate falls are attributed to oil prices, Russian balance of payments and global stock markets. We are witnessing a serious decrease in oil prices leading to falling Russian stocks indexes. Above all the external pressure adds to falling currency rates. High oil prices have become attracted leverage for the rouble and now the situation is reversed but I do not expect rouble to fall much further than where it is. The Central Bank is likely to support it through monetary interventions. Ultimately, in anticipation of the up coming elections nobody wants to witness the situation of 2008. People have started active rouble purchasing mainly because of the coming elections and Christmas preparations. That will drive the currency cost up against the dollar.”

SEC Special Studies: Staff Summary Report on Issues Identified in Examinations of Certain Structured Securities Products Sold to Retail Investors



SEC Special Studies

The Commission or Commission staff often undertake special projects to study and report on current trends and issues facing the securities industry. These files will be updated on a periodic basis.

Studies currently available include:

Additional Archives

Date Study
Jul. 27, 2011 Staff Summary Report on Issues Identified in Examinations of Certain Structured Securities Products Sold to Retail Investors
Jul. 21, 2011 Report on Review of Reliance on Credit Ratings
Apr. 22, 2011 Study and Recommendations on Section 404(b) of the Sarbanes-Oxley Act of 2002 For Issuers with Public Float Between $75 and $250 Million
Apr. 20, 2011 Report on Administrative Proceedings for the Period October 1, 2010 through March 31, 2011
Apr. 7, 2011 Joint Study on the Feasibility of Mandating Algorithmic Descriptions for Derivatives
Mar. 10, 2011 U.S. Securities and Exchange Commission Organizational Study and Reform
Jan. 26, 2011 Study and Recommendations on Improved Investor Access to Registration Information About Investment Advisers and Broker-Dealers
Jan. 21, 2011 Study on Investment Advisers and Broker-Dealers
See Also:  Statement by Commissioners Casey and Paredes
Jan. 19, 2011 Staff Study on Enhancing Investment Adviser Examinations
See Also:  Statement by Commissioner Walter

Smartcompany News & Analysis: Sharemarkets continue to rally, Company collapses spike 21% in June, Online rewards firm Wishlist sold, Consumer confidence takes another hit


smart company logo image

Lunch with an Entrepreneur
Higher learner
Selmar Institute of Education founder Marcus Sellen explains what Gen Y are looking for – and it’s not just money. BY MADELEINE HEFFERNAN.
Marcus Sellen

Industry Trends
Snack food market enjoys healthier profits
Demand for nutritious and convenient products is driving industry growth.
Snack food industry

Aunty B
The market’s shot! Go in for the kill or hover on the sidelines?
Different selling tactics are needed in good times, in bad times and in desperate times. And we are in desperate times.
Aunty B

Profitable growth
Julia Bickerstaff
Dropping your prices in the hope of generating more sales isn't always the answer.
Julia Bickerstaff

The Digital Bottom Line
Brendan Lewis
Can business schools stop giving people marks from A to F or zero to 100 please? Just give them pass or fail, so they are prepared for real life.
Brendan Lewis

Property Investor
Michael Yardney
Just in case you hadn’t noticed, the rich are getting richer.
Michael yardney

Entrepreneur Watch
James Thomson
Does the incredible market rally in Australia and the US mean we’re through the worst? Maybe not.
James Thomson

Asian stocks bounce to pare recent losses: MarketWatch | Market Pulse - Asian Market



By Sarah Turner, MarketWatch 

SYDNEY (MarketWatch) Asian stocks bounced higher Wednesday, as investors stepped back into equity markets following recent heavy losses, with sentiment helped by a rally in U.S. shares overnight.

In early trading, Japan’s Nikkei Stock Average JP:NIK +1.77%  logged a 1.7% gain to pare its weekly losses for the index to 5.7%.
A 2.4% gain for the Australian S&P/ASX 200 index AU:XJO +2.72%  cut losses in Sydney made over the same period to 4.6%, and a 3.2% rise in the South Korean Kospi KR:0100 +2.12%  reduced weekly losses there to 10.2%.
While fretting about the possibility of another global recession on top of U.S. and European sovereign-debt woes, investors had dumped stocks over the past week, with Hong Kong shares down more than 12% and Korean stocks dropping almost 13%. 



 
Stocks stage stunning rebound Stocks plummet, then skyrocket after the Federal Reserve pledges to hold interest rates near zero through mid-2013. The Dow ends up 430 points. 

Leading Asian advancers on Wednesday included many commodity-related firms, banks and exporters.
BHP BIlliton Ltd. shares AU:BHP +3.51%   BHP +0.20%  climbed 3.1% in Sydney, paring weekly losses to 8.1%. Japan’s Inpex Corp. stock JP:1605 +3.02%   IPXHY +4.81%  rose 2.2%, paring weekly losses to 15.2%. Shares of Korean blue-chip LG Electronics Corp. LGEIY 0.00%  jumped 4.6%, slicing weekly losses to 20.4%.
The share gains followed a pledge by the U.S. Federal Reserve on Tuesday to keep interest rates at ultra-low levels through mid-2013. This helped calm frayed investor nerves and send U.S. shares into a late recovery to end sharply higher, with the Dow industrials DJIA +3.98%  closing up 4%. Read more on Fed statement.
“The FOMC statement delivered a carefully worded message, reassuring markets that the Fed would remain engaged and keep rates extraordinarily low for much of the next two years,” said strategists at Barclays Capital.
“Given the extent of policy support, the gradual shift in the policy mix, and valuation opportunities available in many markets, we allow ourselves to expect a market recovery,” they said.
 
Sarah Turner is MarketWatch's bureau chief in Sydney.

Australian stocks leap after Wall Street rally: MarketWatch | Market Pulse - Australia


By Michael Kitchen 
 
LOS ANGELES (MarketWatch) -- Australian stocks staged a solid rally in early Wednesday trading, buoyed by sharp gains overnight in the U.S. The S&P/ASX 200 AU:XJO +2.68% rose 2.8% to 4,147.40, with resource and financial shares among the leading advancers. Among banks, National Australia Bank Ltd. AU:NAB +5.44% NAUBF +7.32% jumped 5.5%, Australia & New Zealand Banking Group AU:ANZ +4.37% ANEWF +2.41% was up 4.1%, and Westpac Banking Corp. AU:WBC +4.00% WEBNF +10.83% grew its share price by 4.3%. A rebound in crude-oil prices helped Woodside Petroleum Ltd. AU:WPL +3.30% WOPEF +6.94% rise 3.5%, while Santos Ltd. AU:STO +3.93% STOSF +6.79% added 4.4%, and WorleyParsons Ltd. AU:WOR +5.64% WYGPF -4.46% was up 5.6%. Miners also rallied, with BHP Billiton Ltd. AU:BHP +3.02% BHP +0.24% rising 3.2%, Rio Tinto Ltd. AU:RIO +4.24% RIO +0.59% up 5.6%, and Fortescue Metals Group Ltd. AU:FMG +5.58% FSUMF +5.81% gaining 4.9%.

Security for disabled as markets lurch:The Australian Capital Circle

Capital Circle Newsletter

Security for disabled as markets lurch
 
The Gillard government will announce a national disability insurance scheme today as global financial instability keeps Australian investors on edge.

Julia Gillard is in Melbourne launching a new national no-fault disability scheme this morning.
Tony Abbott is on leave. Warren Truss is Acting Opposition Leader.
Wild ride: The Australian sharemarket is expected to open higher today after US stocks soared overnight on the back of a Federal Reserve assurance that interest rates would remain low for at least two years. In a day of volatility yesterday, the ASX staged a stunning turnaround, closing 1 per cent higher after plunging 5 per cent after the opening. The remarkable rally came as Julia Gillard and Wayne Swan reaffirmed their 2012-13 return-to-surplus deadline. The move was questioned by economists. But the Treasurer argued the markets needed "firm fiscal policy".
Life long: As reported in The Australian today, Julia Gillard will announce a groundbreaking national disability insurance scheme, to be trialled in one location in 2014 before being introduced nationally. The Productivity Commission has proposed a $6.3 billion no-fault scheme to provide life long high-quality care to support about 360,000 people.
Oops: Occasionally, you get an insight into the media micromanagement of the media attempted by politicians and it just leaves scratching your head. Such was the case yesterday when Agriculture Minister Joe Ludwig's office accidentally sent an internal email exchange to the entire press gallery. In it, senior staff constructed a bland "holding line" to keep inquirers at bay after The Australian's Milanda Rout reported a $70 million cattle producers assistance package was about to be announced. They settled on: "The government is considering a rang
Read more...

The Australian Business Briefing: Unemployment biggest threat: Clyne




Unemployment biggest threat: Clyne
Cameron Clyne Scott Murdoch NAB chief Cameron Clyne says rising unemployment will be the biggest threat to the Australian economy.
Nine profit up, but mags a drag
PN 75 IMG Generic Business Nine Gyngell Nabila Ahmed and James Chessell NINE forecasts modest growth this year after posting a solid 2010-11 result amid troubled advertising markets.
Hedge funds' role is 'crucial'
ASX Sarah-Jane Tasker HEDGE funds play a key role in market volatility, some shorting the market and some being forced to sell as equity prices collapse.
Sovereign debt woes rock consumers
Graeme Liebelt Damon Kitney and Tracy Lee and Blair Speedy BUSINESS leaders warn market volatility and weak consumer sentiment will be ongoing features of Australian corporate life.
Cochlear's growth loud and clear
Chris Roberts Richard Gluyas HEARING device maker Cochlear is positioned for further growth after reporting a 16 per cent jump in 2011 profit to $180.1 million.
Writedown dilutes Coke profit
Coca-Cola Blair Speedy DISASTERS and consumer sentiment are also hitting sales.
Financial Markets
$A surges on Fed rate outlook
Australian dollar Dawn Kissi THE Australian dollar rose sharply after the Federal reserve said it would keep US interest rates at ultra-low levels.
Volatile Wall St jumps 430 points
Gold rises 1.7pc to record
Financial Markets Coverage
Mining & Energy
Gold rises 1.7pc to record
Gold Prices Tatyana Shumsky GOLD raced higher after the Fed said the weak US economy will warrant low interest rates until "at least" mid-2013.
Oil price falls below $US80
Copper price edges higher
More Mining & Energy
 

MarketWatch | Personal Finance Daily: The return of the grizzly one


MarketWatch

Personal Finance Daily
AUGUST 09, 2011

Tips for back-to-school shopping savings

By MarketWatch



Don't miss these top stories:

While most people are focused on the stock market's wild ride this week, don't forget that the first day of school is just around the corner and you still need to pick up supplies for the kids. So it only makes good sense to get the best deals possible. Today in her Consumer Confidential column, Jennifer Waters lists the top 10 ways you can save on back-to-school shopping.

Also on MarketWatch today, Mark Hulbert reports that corporate insiders were, three weeks ago, selling at an abnormally fast pace — the fastest pace in nearly 40 years. But now they're shifting back to the buy side in a big way. Insiders aren't always right, he cautions. But, he adds, "it is comforting that a group of investors who presumably know more about their companies' prospects that the rest of us consider the low prices of their stocks to represent attractive bargains."

Anne Stanley , Managing Editor, Personal Finance

10 tips for back-to-school shopping savings

Parents reining in spending should shop at home first and then plan carefully.
Read more: 10 tips for back-to-school shopping savings


Insiders are buying

As recently as three weeks ago, corporate insiders were selling shares of their companies' stock at an abnormally fast pace. But the market's recent plunge has led many of them to shift back to the buy side, reports Mark Hulbert.
Read more: Insiders are buying.


How fast can you reach your broker?

Pay Dirt contacted some of the biggest brokerage firms by phone and email to see how fast they were in responding to our queries.
Read more: How fast can you reach your broker?


INVESTING

The return of the grizzly one

For speculators whose focus is on the intermediate-term, a high cash position should be maintained, writes Kevin Marder.
Read more: The return of the grizzly one.


Get ready for Great Recession 2.0

Investors don't have to be victims. John Nayardi calls out three exchange-traded funds that are technically strong as we head into tougher times.
Read more: Get ready for great recession 2.0.


Fear of recession may help avoid it

The very fear that the United States economy is heading into a double-dip recession may well serve to keep us out of it, writes Irwin Kellner.
Read more: Fear of recession may help avoid it.


Canadians remember their own S&P downgrade

Canadians remember how their government restored its AAA rating after it was cut by S&P in the 1990s, writes columnist Bill Mann.
Read more: Canadians remember their own S&P downgrade.


POLITICS AND ECONOMY

Fed: Low rates to stay till at least mid-2013

Federal Reserve pledges to keep rates on hold "at least through mid-2013." That action brings an unusual three dissenting votes.
Read more: Low rates to stay till at least mid-2013.


Moody's, S&P lobbying spending on rise

Moody's Corp. and the parent company of Standard & Poor's have spent increasingly more money to lobby the U.S. government in recent years, data from a money-in-politics research group shows, and political contributions from individuals connected to both companies are heavily tilted towards Democrats.
Read more: Moody's, S&P lobbying spending on rise


Second-quarter U.S. productivity falls 0.3%

U.S. business productivity eases for the second quarter, while government data for the first quarter are revised to show a decline — the first back-to-back decline in three years.
Read more: Second-quarter U.S. productivity falls 0.3%.