NZ dollar still firm against USD but gains capped

Monday, 19 November 2018, 8:26 pm
Article: BusinessDesk

NZ dollar still firm against USD but gains capped by waning risk appetite

By Rebecca Howard

Nov. 19 (BusinessDesk) – The New Zealand dollar held its gains against the greenback after the US Federal Reserve officials were cautious about the global growth outlook but jitters about the US-China trade dispute kept it capped.

The kiwi traded at 68.52 US cents at 5pm in Wellington versus 68.53 US cents at 8am and from 68.76 cents on Friday in New York. The trade-weighted index was at 74.67 from 74.83 last week.

Richard Clarida, the Fed’s newly appointed vice chair, cautioned about a slowdown in global growth in an interview with CNBC while Federal Reserve Bank of Dallas President Robert Kaplan told Fox Business he is seeing a growth slowdown in Europe and China. Those comments weighed on the US dollar as investors saw them as signaling fewer rate cuts on the horizon.

The kiwi, however, is keeping to a very tight range as ongoing worries about the US-China trade dispute weigh on risk appetite, said Mark Johnson, a private client manager at OMF.

Weekend comments by US Vice President Mike Pence fueled the concerns. Pence – who was attending the Asia- Pacific Economic Cooperation summit in Papua New Guinea – said that there would be no end to U.S. tariffs on $250 billion of Chinese goods until China changed its ways, according to Reuters. Also, for the first time in its nearly three-decade history, officials of the 21-member Pacific Rim group ended two days of meetings in Port Moresby without issuing a joint communique.

“You all know who the two big giants in the room were, so what can I say, ” PNG Prime Minister Peter O’Neill said, Dow Jones Newswires reported.

The

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Dow Gains 545 Points Because It's Finally Over

Michael Haddad

Relief Rally. Democrats took the House as expected, Republicans expanded their control of the Senate. The market surged on Wednesday lead by health-care, tech, and consumer-discretionary stocks. In today’s After the Bell, we…

…discuss what a divided Congress could block; …highlight Cimarex Energy’s move to the top of the S&P 500; …and explain why Coty tumbled more than 20%. Reveling in the Gridlock

Stocks surged after most of the results of the midterm election were announced. The Dow Jones Industrial Average gained 545.29 points, or 2.1%, to 26,180.3, while the S&P 500 increased 58.44 points, or 2.1%, to 2813.89 and the Nasdaq Composite added 194.79 points, or 2.6%, to 7570.75.

The election outcome was no surprise, but the market’s very upbeat reaction to it warrants some explanation.

Some argue that a divided Congress means the scope of President Donald Trump’s trade war with China will be limited. But INTL strategist Vincent Deluard thinks it’s also unlikely to de-escalate anytime soon, as both sides view the dispute as a threat to national security.

Deluard suggests investors look into countries that might be courted by the two superpowers in the trade war and hence benefit from the confrontation. “Investors should look for cheap, industrialized economies that are not reliant on foreign funding,” he writes in a note on Wednesday. South Korea, Chile, Peru, Malaysia, Indonesia, Thailand, and Vietnam are countries on the analyst’s list that could offer some good opportunity in the next market cycle.

The trade war is not the only thing that could be stymied by a divided Congress. “A key risk under gridlock is failure to enact pro-growth measures over the next two years that might create economic momentum for the incumbent,” writes Michelle Meyer of Bank of America

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BSE to cut ties with S&P Dow Jones; develop own in-house indices

The deal with BSE came after the expiry of the licensing arrangement between India Index Services & Products (IISL), a joint venture of NSE and S&P-owned Crisil

Asia’s oldest bourse has decided to snap ties with S&P Dow Jones, which manages and operates benchmark Sensex, and plans to develop indices through its own in-house development team, exchange’s officials said.

The two entities had announced a joint venture — Asia Index — in 2013 to provide an array of indices enabling global and domestic investors to participate in South Asia’s vibrant economies.

The deal with came after the expiry of the licensing arrangement between (IISL), a joint venture of and S&P-owned Crisil.

The exchange officials said that will not renew its agreement with Indices LLC which expires on December 31, 2018 and it is looking to develop indices through its own team.

“Basically, we had done this tie-up five years back, but the joint venture could not do much in terms of expanding in the foreign jurisdiction, the usage of the indexes and all,” BSE Managing Director and Chief Executive Ashishkumar Chauhan told investors in a conference call.

“And that is why we have decided to not renew it, but overall the impact on profits or on the revenues will be minuscule,” he added.

Rival bourse National Stock Exchange’s indices are managed and operated by Indices, an arm of

Indices LLC, a subsidiary of The McGraw-Hill Companies, is the world’s largest global resource for index-based concepts, data and research.

BSE is Asia’s oldest stock exchange and home to the iconic Sensex index – a leading indicator of Indian equity market performance.

First Published: Sun, November 18 2018. 11:25 IST

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BSE to part ways with S&P Dow Jones, plans to develop its own indices

New Delhi: Asia’s oldest bourse BSE has decided to snap ties with S&P Dow Jones, which manages and operates benchmark Sensex, and plans to develop indices through its own in-house development team, exchange’s officials said.

The two entities had announced a joint venture — Asia Index — in 2013 to provide an array of indices enabling global and domestic investors to participate in South Asia’s vibrant economies.

The deal with BSE came after the expiry of the licensing arrangement between India Index Services & Products (IISL), a joint venture of NSE and S&P-owned Crisil.

The exchange officials said that BSE will not renew its agreement with S&P Dow Jones Indices LLC which expires on December 31, 2018 and it is looking to develop indices through its own team.

“Basically, we had done this tie-up five years back, but the joint venture could not do much in terms of expanding in the foreign jurisdiction, the usage of the indexes and all,” BSE Managing Director and Chief Executive Ashishkumar Chauhan told investors in a conference call.

“And that is why we have decided to not renew it, but overall the impact on profits or on the revenues will be minuscule,” he added.

Rival bourse National Stock Exchange’s indices are managed and operated by NSE Indices, an arm of NSE.

S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies, is the world’s largest global resource for index-based concepts, data and research.

BSE is Asia’s oldest stock exchange and home to the iconic Sensex index – a leading indicator of Indian equity market performance.

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Market recap: escaping falling knives

Asset prices declined: This past week, we observed a broad-based decline in asset prices – both bonds and stocks experienced sell-offs.

Any observed asset price increases were likely the result of positive firm specific events or news. What is to blame for the decline in prices?

When is a fall in price an indicator to sell or when is it an indicator to buy more? A combination of rising interest rates, an intensifying trade war between the US and China, heightened Brexit uncertainty, and a decline in oil prices are a few of the factors fuelling the sell-off. To the extent that the price decline is not a reflection of a deterioration in the credit quality or feasibility of the company’s business model – it could be a buying opportunity. However, numerous buying opportunities are likely to present themselves over the next two years. Its advisable to resist buying at signs of the first sell-off.

Let’s look at what happened to prices of commonly held asset classes:

HIGH YIELD BONDS

Most US dollar denominated high yield bonds (bonds with a credit rating below BBB-) declined in price. Bonds issued by Tesla (B-), Netflix (BB-), Digicel (C) are considered high yield.

The Bloomberg Barclays High Yield Index tracks the weighted average price (and yield) of US dollar high yield bonds in the developed markets. The “price” of this index has fallen by over 1.1 per cent since November 8th and the yield on this index jumped to 7.04 per cent on Thursday (from 6.94 per cent); a 2.5 year high (source: Bloomberg).

Bonds issued by the Government of Jamaica (B-) are also considered high yield and have not been immune to the sell-off. The price of Government of Jamaica 6.75 per cent 2028 bonds are down almost 7 per cent from

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Amid US Sanctions, Iran’s President Calls for Increased Trade with Iraq

TEHRAN – Iran’s President Hassan Rouhani called on Saturday for an increase in bilateral trade with neighboring Iraq to $20 billion annually, up from what he said was the current level of $12 billion, amid renewed economic sanctions by the United States against Tehran.

Rouhani spoke at a joint press conference following a meeting in the Iranian capital with his Iraqi counterpart, Barham Salih, two weeks after the US re-imposed sanctions on Iran’s key oil sector, as well as finance and maritime transport.

“Currently, the business exchanges between Iran and Iraq are around $12 billion, which can increase to $20 billion with regard to the potentials in the two countries,” Rouhani said, according to the official website of the office of the Iranian presidency.

Rouhani said the meeting addressed boosting trade in electricity, gas and oil products, setting up a free trade zone between the two countries and improving transportation links, including a rail link to the southern Iraqi city of Basra, the country’s main oil export terminal.

Salih, a Kurdish politician selected as president by Iraq’s parliament last month, also stressed the need for improved relations between the two countries, citing their deep bonds.

In May, US President Donald Trump pulled out of the 2015 nuclear deal between Iran and several world powers.

After sanctions came into force on Nov. 5, Iraq and seven other countries were granted a 45-day waiver to temporarily import Iranian gas and electricity without facing US punishment, according to a report by Dow Jones Newswires made available to EFE.

Iraq is a large market for many types of Iranian exports, ranging from food and agricultural products to household appliances and auto parts.

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The bears have the bulls on the run all over the world

Things are looking jittery again.

Key points:Equity markets in China, Hong Kong and Korea are all in bear territory, others are are closeOil is down more than 20pc in just the past monthAnalysts warn of “flash crashes” as most markets haven’t bottomed

The big broker Bank of America Merrill Lynch warned its clients over the weekend that risk of another “flash crash” in markets is rising.

Its strategy team said rising volatility across a range of asset classes and the rapid winding up of speculative positions and debt in places like the oil market was a sign a bear market could have further to go.

There’s a heady list of issues troubling the Wall Street investment bank, but its primary worry is the big institutional investors it deals with have yet to reach peak pessimism.

In other words BoAML’s famous “Bull and Bear Indicator” is not flashing red yet and markets haven’t hit rock bottom.

“Ingredients of flash crash rising … bond, foreign exchange, equity volatility all trending up, vicious deleveraging events, dislocation risk via abnormal spreads … triggers could be violent US dollar move and/or shock macro data forcing abrupt GDP and earnings downgrades,” BoAML’s dot points noted.

Its survey of big fund managers found optimism at its lowest point since 2008.

But it’s not total capitulation, only 11 per cent of those surveyed thought the world would be dragged into recession next year.

There’s a bear in there, and there, and there…

So after charging for the best part of a decade, are the global bull markets about to bite the dust?

Since early 2009, at the depth of the financial crisis, global equities have almost trebled in value, but now the bears are out and about and have

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Analysis: The bears have the bulls on the run all over the world

Things are looking jittery again.

Key points:Equity markets in China, Hong Kong and Korea are all in bear territory, others are are closeOil is down more than 20pc in just the past monthAnalysts warn of “flash crashes” as most markets haven’t bottomed

The big broker Bank of America Merrill Lynch warned its clients over the weekend that risk of another “flash crash” in markets is rising.

Its strategy team said rising volatility across a range of asset classes and the rapid winding up of speculative positions and debt in places like the oil market was a sign a bear market could have further to go.

There’s a heady list of issues troubling the Wall Street investment bank, but its primary worry is the big institutional investors it deals with have yet to reach peak pessimism.

In other words BoAML’s famous “Bull and Bear Indicator” is not flashing red yet and markets haven’t hit rock bottom.

“Ingredients of flash crash rising … bond, foreign exchange, equity volatility all trending up, vicious deleveraging events, dislocation risk via abnormal spreads … triggers could be violent US dollar move and/or shock macro data forcing abrupt GDP and earnings downgrades,” BoAML’s dot points noted.

Its survey of big fund managers found optimism at its lowest point since 2008.

But it’s not total capitulation, only 11 per cent of those surveyed thought the world would be dragged into recession next year.

There’s a bear in there, and there, and there…

So after charging for the best part of a decade, are the global bull markets about to bite the dust?

Since early 2009, at the depth of the financial crisis, global equities have almost trebled in value, but now the bears are out and about and have

Read More Here...

Rudy L. Kusuma Home Selling Team to Hold Titanium Real Estate Network Agent Training Workshops and Programs

Rudy L. Kusuma Home Selling Team to Hold Titanium Real Estate Network Agent Training Workshops and Programs – Business News Today – EIN News

Trusted News Since 1995

A service for global professionals · Saturday, November 17, 2018 · 468,659,022 Articles · 3+ Million Readers News Monitoring and Press Release Distribution Tools News Topics Newsletters Press Releases Events & Conferences RSS Feeds Other Services Questions?

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The outlook: UK's window into a less globalized economy

The outlook: UK’s window into a less globalized economy

Nov 17, 2018 (Agencia EFE via COMTEX) —

London, Nov 17 (efe-epa).- The United Kingdom economy has so far weathered the political storm surrounding Brexit pretty well. But beneath the surface, there are harbingers of economic costs to come, according to a report from the Dow Jones Newswires made available to EFE Saturday.

Researchers at the Centre for European Reform, a London think tank focused on European Union policy, estimate the economy was 2.5 percent smaller at the end of the second quarter than it would have been had voters chosen in 2016 to stay in the European Union.

Growth in the UK slowed after the referendum as economies such as the United States, France and Germany kicked into higher gear, a reflection of subdued investment and a squeeze on consumer wallets from a burst of inflation. In 2017, only Italy turned in a weaker performance among Group of Seven economies.

Investors are wary. In dollar terms, the FTSE 250, a better barometer of domestic companies than the globally focused FTSE 100, is down 8 percent since Britons voted to leave the EU in 2016. France’s main index is up 12 percent over the same period, and Germany’s has gained 10 percent.

Still, the unemployment rate in Britain is close to a record low, while wage growth has picked up to its fastest pace in a decade. A once-yawning trade deficit has shrunk. A persistent budget shortfall has been whittled down through years of belt-tightening, allowing Treasury chief Philip Hammond to cut taxes and pump extra cash into hospitals. The Bank of England has begun gently nudging up borrowing costs. While Germany’s economy contracted in the third quarter, the UK’s expanded at a 2.5 percent annual rate.

All are

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