HONG KONG -- Fund managers in Asia started to creep back into stock markets in November, encouraged by the recent sharp drop in prices. For much of this year, fund managers have held higher-than-usual cash positions amid volatile market conditions. The high cash positions have also been in preparation for redemption requests from panicky investors. Managers who waded into securities have generally preferred bonds over equities, but that appears to be changing. For the first time since May this year, managers indicated they were tiptoeing into stocks. Managers said they were "slightly overweight" on equities, according to Dow Jones's monthly poll of portfolio managers active in Asia. Weightings reflect managers' portfolio composition compared to benchmark indexes. "The appetite for risk is increasing. Cash should increasingly be invested in equities," said New Star's Gregor Logan, adding that "the discount in earnings is likely to be less substantial than currently priced in."
HONG KONG -- Fund managers in Asia started to creep back into stock markets in November, encouraged by the recent sharp drop in prices.
For much of this year, fund managers have held higher-than-usual cash positions amid volatile market conditions. The high cash positions have also been in preparation for redemption requests from panicky investors. Managers who waded into securities have generally preferred bonds over equities, but that appears to be changing.
For the first time since May this year, managers indicated they were tiptoeing into stocks. Managers said they were "slightly overweight" on equities, according to Dow Jones's monthly poll of portfolio managers active in Asia. Weightings reflect managers' portfolio composition compared to benchmark indexes.
"The appetite for risk is increasing. Cash should increasingly be invested in equities," said New Star's Gregor Logan, adding that "the discount in earnings is likely to be less substantial than currently priced in."
BRUSSELS (MarketWatch) -- The European Commission hasn't blocked France's bank bail-out plan and negotiations on the matter are continuing, a commission spokesman said Sunday. "We are not blocking (the plan), we just haven't agreed to it yet. There is a difference," said spokesman Jonathan Todd, who specializes in competition matters. Todd was responding to a report in the Financial Times that said the commission is blocking a French plan to bail out the country's six main retail banks, as it holds the view that banks shouldn't be allowed to use state support to increase their lending.
Nov. 29 (Bloomberg) -- The European Commission denied it's blocking France's 10.5 billion-euro ($13 billion) bank-rescue plan and said the two sides are still negotiating. "We haven't blocked the plan, because we haven't taken a decision," Jonathan Todd, spokesman for European Competition Commissioner Neelie Kroes, said in a telephone interview today. Kroes held talks with French finance minister Christine Lagarde yesterday, and both sides are keen to reach a deal "as soon as possible," Todd added. The Financial Times reported yesterday that the European Commission would veto the rescue plan unless the banks reduced lending. The French government is pushing BNP Paribas SA, Societe Generale SA and four other lenders to boost loans by 3 to 4 percent in exchange for the aid. French President Nicolas Sarkozy also denied the commission had blocked the plan. "Absolutely not," Sarkozy replied when asked by reporters today in Doha, Qatar. "I don't think there is such a will from any commissioner," he said.
Nov. 29 (Bloomberg) -- The European Commission denied it's blocking France's 10.5 billion-euro ($13 billion) bank-rescue plan and said the two sides are still negotiating.
"We haven't blocked the plan, because we haven't taken a decision," Jonathan Todd, spokesman for European Competition Commissioner Neelie Kroes, said in a telephone interview today. Kroes held talks with French finance minister Christine Lagarde yesterday, and both sides are keen to reach a deal "as soon as possible," Todd added.
The Financial Times reported yesterday that the European Commission would veto the rescue plan unless the banks reduced lending. The French government is pushing BNP Paribas SA, Societe Generale SA and four other lenders to boost loans by 3 to 4 percent in exchange for the aid.
French President Nicolas Sarkozy also denied the commission had blocked the plan. "Absolutely not," Sarkozy replied when asked by reporters today in Doha, Qatar. "I don't think there is such a will from any commissioner," he said.
Nov. 29 (Bloomberg) -- The yen gained for a fourth straight month against the euro, the longest wining streak since 1999, as the deepening global economic slump prompted investors to sell high-yielding assets and pay back loans made in Japan. The euro weakened against the dollar for a fifth month as investors added to bets the European Central Bank will cut interest rates next week after inflation in the region slowed by the most since at least 1991. Russia's ruble declined against the dollar to the weakest level since March 2006 as the central bank let the currency depreciate and raised interest rates to halt an exodus of foreign capital. "The yen is still our favorite currency," said Derek Halpenny, head of global currency research at Bank of Tokyo- Mitsubishi Ltd. in London in an interview on Bloomberg Television. "The interest-rate differential argument is still very, very powerful for the Japanese yen as yields around the world continue to plunge. Past performance tells you that the Japanese yen is going to be the currency that outperforms."
Nov. 29 (Bloomberg) -- The yen gained for a fourth straight month against the euro, the longest wining streak since 1999, as the deepening global economic slump prompted investors to sell high-yielding assets and pay back loans made in Japan.
The euro weakened against the dollar for a fifth month as investors added to bets the European Central Bank will cut interest rates next week after inflation in the region slowed by the most since at least 1991. Russia's ruble declined against the dollar to the weakest level since March 2006 as the central bank let the currency depreciate and raised interest rates to halt an exodus of foreign capital.
"The yen is still our favorite currency," said Derek Halpenny, head of global currency research at Bank of Tokyo- Mitsubishi Ltd. in London in an interview on Bloomberg Television. "The interest-rate differential argument is still very, very powerful for the Japanese yen as yields around the world continue to plunge. Past performance tells you that the Japanese yen is going to be the currency that outperforms."
The euro fell to a four-session low against the dollar after data showing a drop in euro-zone inflation forced the European currency to give up much of its gains from earlier in the week. The European Union's Eurostat statistics agency said the annual rate of inflation in the 15 countries that use the euro fell to 2.1% in November from 3.2% in October. That was the largest decline in a month since euro-zone inflation records began in 1997. The inflation report hurt the euro because it means the European Central Bank will probably be less worried about inflationary pressures, and therefore more likely to cut interest rates this coming week in an effort to jump-start the region's economy. Lower ECB interest rates (the benchmark rate is 3.25%) would tend to reduce returns on euro-based assets, making the currency less appealing. "The market is no doubt looking for an ECB rate cut next week of at least [half a percentage point]after the 'flash' euro-zone CPI estimate collapsed," Stephen Malyon, senior currency strategist at Scotia Capital, said Friday. "We remain bearish toward the euro versus the dollar."
The euro fell to a four-session low against the dollar after data showing a drop in euro-zone inflation forced the European currency to give up much of its gains from earlier in the week.
The European Union's Eurostat statistics agency said the annual rate of inflation in the 15 countries that use the euro fell to 2.1% in November from 3.2% in October. That was the largest decline in a month since euro-zone inflation records began in 1997.
The inflation report hurt the euro because it means the European Central Bank will probably be less worried about inflationary pressures, and therefore more likely to cut interest rates this coming week in an effort to jump-start the region's economy. Lower ECB interest rates (the benchmark rate is 3.25%) would tend to reduce returns on euro-based assets, making the currency less appealing.
"The market is no doubt looking for an ECB rate cut next week of at least [half a percentage point]after the 'flash' euro-zone CPI estimate collapsed," Stephen Malyon, senior currency strategist at Scotia Capital, said Friday. "We remain bearish toward the euro versus the dollar."
Is it just market CW based on smoke and nonsense, are they over-exagerrating germany's issues or is there something else again causing this ? keep to the Fen Causeway
3) Everybody knows the ECB is about to bring interest rates down, and "markets are anticipating".
4) World stability hangs by a thread as economies continue to unravel - Telegraph
Investors are retreating into 3-month US Treasury bills - the ultimate safe-haven. The yield has fallen to 0.02pc, less than zero after costs. You pay Washington to guard your money.
(Read the whole article, go on)
5) Europe.Is.Doomed
It makes sense to me. Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
Russia's central bank increased its key interest rate to 12% from 11% in an attempt to reduce an outflow of money and curb the decline in the rouble. The move is also aimed at containing inflationary pressures. On Monday the head of the central bank refused to rule out the possibility that the national currency, the rouble, could weaken. However, Sergei Ignatiev stressed that both the bank and the government wanted to avoid a devaluation. Russia has been spending billions of dollars to support the rouble.
Russia's central bank increased its key interest rate to 12% from 11% in an attempt to reduce an outflow of money and curb the decline in the rouble.
The move is also aimed at containing inflationary pressures.
On Monday the head of the central bank refused to rule out the possibility that the national currency, the rouble, could weaken.
However, Sergei Ignatiev stressed that both the bank and the government wanted to avoid a devaluation.
Russia has been spending billions of dollars to support the rouble.
Chinese exploit western job losses Out-of-work finance professionals in the UK and US have a new reason for optimism about their employment prospects - especially if they speak Mandarin. Chinese financial institutions are set to exploit the widespread job losses in western financial centres as a result of the credit crunch by next month embarking on a hunt for financial experts willing to relocate. The Shanghai Financial Service Office has told state media the city is sending a delegation to New York, Chicago and London to recruit specialists in risk management, asset management, product research and development, macro economics and policy analysis.
Out-of-work finance professionals in the UK and US have a new reason for optimism about their employment prospects - especially if they speak Mandarin.
Chinese financial institutions are set to exploit the widespread job losses in western financial centres as a result of the credit crunch by next month embarking on a hunt for financial experts willing to relocate.
The Shanghai Financial Service Office has told state media the city is sending a delegation to New York, Chicago and London to recruit specialists in risk management, asset management, product research and development, macro economics and policy analysis.
Concerns mount on ability to fund state debt Fears are rising over the ability of governments to raise the vast amounts of debt they need to pay for economic stimulus packages and bank bail-outs. Faced with the prospect of governments around the world issuing more than €2,000bn ($2,535bn) of bonds in the next year, bankers are warning of potential problems in meeting funding needs. (...) The rush of bond issues comes against a background of record low yields in some countries because of recession and fears of deflation. Last week, 10-year bonds in both the US and the UK fell to 50-year lows. However, faced with contracting economies, lower tax receipts, and rising benefit payments, countries could face higher debt-servicing costs as overall debt levels rise.
Fears are rising over the ability of governments to raise the vast amounts of debt they need to pay for economic stimulus packages and bank bail-outs.
Faced with the prospect of governments around the world issuing more than €2,000bn ($2,535bn) of bonds in the next year, bankers are warning of potential problems in meeting funding needs.
(...)
The rush of bond issues comes against a background of record low yields in some countries because of recession and fears of deflation. Last week, 10-year bonds in both the US and the UK fell to 50-year lows.
However, faced with contracting economies, lower tax receipts, and rising benefit payments, countries could face higher debt-servicing costs as overall debt levels rise.
Who will be the first to fail?
France, of course! And you know what that means:
WHEEEEEEEEEEEEEEEEEEEEE!!!!!
[Drew's WHEEEEE™ Technology] Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
Practically, it would seem to consist of identifying and replacing insolvent institutions with new institutions capable of performing their functions. I have the sense that Paulson and the current crew in charge of the US economy do not want to find out how bad bad is. If they did, it might be too obvious that many of their cohort are doomed. I fear that the policies, if they can be called policies, that are currently being followed are tantamount to having the lifeboats of the Titanic tie on to the Titanic in an effort to keep it afloat.
As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
I have the sense that Paulson and the current crew in charge of the US economy do not want to find out how bad bad is. If they did, it might be too obvious that many of their cohort are doomed. I fear that the policies, if they can be called policies, that are currently being followed are tantamount to having the lifeboats of the Titanic tie on to the Titanic in an effort to keep it afloat.
slight correction, they don't want the public to know how deep the rot has set in.
at the same time as threatening social breakdown and martial law as blackmail!
that's what paulson's shit-scared of, and i can see why.
excellent twist on the titanic metaphor, btw. ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
between ARGeezer:
We still have to figure out if we can save both the troubled portion of the existing financial sector and "the rest of the economy" in any given country or zone. If we cannot, is there any chance of figuring that out in time to save either? And what would be required politically for a government to decide to save the "rest of the" economy?
and this earlier quote i posted from stan goff
melo:
This extractive praxis inherently destroys biotic systems -- whether it be the body of a cow, or an entire ecosystem -- because no biotic system can survive being stripped for specific "high value" parts. Ecosystems, like animals, function as a whole. The rates of return demanded by finance capitalism are inherently incompatible with the rate of solar return expressed by natural growth patterns in biotic systems.
A rapper can say things about his 'opponent' that, said directly, would result in gunplay.
There is a whole list of Chinese movies that were critical of the Mao and Post-Mao period - at the time - that were political allegories, if you understood the symbolism. The scripts for these movies were so successfully obfuscated that they passed the censors. You can't be me, I'm taken
That which can not be said, can be said if it is space movies with apes and robots. A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!
Time for Junior to give us another "Mars, Bitches!" speech. Deflation's fun, fun, fun!
YEEHAWWW!!
Sales in the nation's stores were strong over the weekend, to the relief of retailers that had been expecting a holiday shopping period as slow as the overall economy. But while spending was up, there were troubling signs in the early numbers. The bargains that drove shoppers to stores were so stunning, analysts said that retailers -- already suffering from double-digit sales declines the last two months -- would probably see their profits erode even further.Also, after shoppers flooded stores on Friday, foot traffic trailed off significantly on Saturday and Sunday.Retailing professionals consider the weekend after Thanksgiving a barometer of overall holiday sales, which account for 25 to 40 percent of their annual sales. And in a year marked by an economic crisis, they are desperate for any signs that consumers are still willing to spend.
Sales in the nation's stores were strong over the weekend, to the relief of retailers that had been expecting a holiday shopping period as slow as the overall economy.
But while spending was up, there were troubling signs in the early numbers. The bargains that drove shoppers to stores were so stunning, analysts said that retailers -- already suffering from double-digit sales declines the last two months -- would probably see their profits erode even further.
Also, after shoppers flooded stores on Friday, foot traffic trailed off significantly on Saturday and Sunday.
Retailing professionals consider the weekend after Thanksgiving a barometer of overall holiday sales, which account for 25 to 40 percent of their annual sales. And in a year marked by an economic crisis, they are desperate for any signs that consumers are still willing to spend.
The political and public campaign to force Britain's banks to do more to help customers weather the economic downturn will gain impetus on Monday with a promise from Royal Bank of Scotland to give at least six months' breathing space to homeowners who fall behind with mortgage payments.The promise, which will put pressure on other banks to make similar commitments, comes as ministers prepare to outline plans that could see voluntary codes of practice for the banking industry placed on a statutory footing.<The promise by RBS, which also owns NatWest, comes days after the government took ownership of a 58 per cent stake in the bank after shareholders shunned the offer to buy new shares as part of the bank's £20bn ($30.7bn) capital injection.The bank's pledge not to begin repossession proceedings until customers were six months or more in arrears is double the minimum recommended by industry guidelines
The political and public campaign to force Britain's banks to do more to help customers weather the economic downturn will gain impetus on Monday with a promise from Royal Bank of Scotland to give at least six months' breathing space to homeowners who fall behind with mortgage payments.
The promise, which will put pressure on other banks to make similar commitments, comes as ministers prepare to outline plans that could see voluntary codes of practice for the banking industry placed on a statutory footing.<
The promise by RBS, which also owns NatWest, comes days after the government took ownership of a 58 per cent stake in the bank after shareholders shunned the offer to buy new shares as part of the bank's £20bn ($30.7bn) capital injection.
The bank's pledge not to begin repossession proceedings until customers were six months or more in arrears is double the minimum recommended by industry guidelines
