Archive - September, 2012

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State backed Royal Bank of Scotland is the front page of the business press this morning after further details emerged from the Tan Chi Man case in Singapore. He is the senior trader who was dismissed for gross misconduct, but is suing RBS on the basis he was simply the scapegoat of a widespread problem. Details emerged that senior traders at RBS boasted about operating a “cartel” that made “amazing” amounts of money by rigging the global interest rates. Analysts are…

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Overnight Asian markets fell as investors showed concern over central bank stimulus from the EU, Asia and the US, will not be enough to increase global growth. Benchmark indices across Asia fell with the MSCI Asia Pacific Index down around 1.5%. The Chinese economy has fuelled global demand through imports of raw materials for development and exports of cheap goods from low cost labour. Analysts are concerned that a Chinese hard landing could be the sucker punch to global growth over the nex…

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In a worrying sign for the mining industry, Caterpillar the world’s biggest construction and mining equipment maker has cut is forecast for 2015 earnings. With Chinese demand slowing, commodity producers have reduced their capital expenditure, which will impact Caterpillars outlook. The shortfall in Apple iPhone5 units available for the first week of demand (only selling a record breaking 5 million) has been blamed on the use of thinner touch screen. The shortfall of the componen…

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It is a miserable wet, cold and windy day in the City of London, and I feel that a rubber dingy would have been a more appropriate method of transport to get into the office. Investors are awaiting Thursday’s release of the Oliver Wyman investigation into the Spanish banking sector. The report has independently covered 14 banking groups, with an estimated figure for a required bailout of €60bn. Currently Spain has earmarked €100bn to recapitalise the Spanish banks, but…

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It’s the final trading session of the week in Europe and if you are one of the Apple faithful then you might have been queuing outside an Apple store overnight awaiting the iPhone 5 release. With pre orders topping $2 million, Apple has already released a statement stating that some clients will be unable to purchase the new smart phone until the end of October. It is a problem, that many companies would love to have, being unable to meet the demand upon release of a new product, with…

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During the Asian session equities fell the most in two weeks after the release of Chinese manufacturing data, showing that its manufacturing sector is likely to contract in September for an 11th month. The Asian selloff continued after the release of Japanese exports down by 5.8% from August compared to the previous year. This week has seen WTI Crude fall by nearly $10 from high to low currently trading with a $90 handle trading at a 6-week low. This follows the sudden selloff on Monda…

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The Bank of Japan unexpectedly increased is asset-purchases by 10trillion Yen, as the central bank attempts to counter the country’s economic contraction. Following the announcement Japanese stocks rallied and the Yen fell as only 5 of 21 analysts forecast the easing. Manchester United may have had a good season on the pitch, but financially their first earnings show that the lack of trophies led to an operational loss of £14.9m. Total revenues were down 3% to £…

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During the US trading session on Monday, there was a sudden drop in a matter of minutes of just over $4 in WTI and Brent. This sudden movement led to a selloff in equities, gold and silver. Speculation and rumours as to the reasoning were that there had been a “fat finger,” an algorithm that had gone wrong and that there was an announcement of a special petroleum release (SPR). The CME Group quickly released a statement that they “..we’re not aware of any technical is…

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Its Monday morning and the start of the trading week in Europe, and though there has been unrest in the Middle East, political tensions increasing between Japan and China, the mainstream UK press is focused on the pictures taken of a royal while sunbathing. The escalating unrest in the Middle East is likely to unsettle investors and push up the prices of Oil due to the uncertainty of future supply. Protesters have been outside western embassies and Al-Qaeda brazenly attacked the ISAF b…

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Abshire-Smith is proud to celebrate our first year anniversary as an FSA regulated company. In a challenging economic environment to have had a successful year of development and sustained growth reflects on the employees and the company values. The commitment to providing leading trading technology in a safe, secure and regulated environment is part of the reasons for the growth of our institutional business. The CEO Adam David Neal said: This year has had some important mi…

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If you held bullish positions this week in commodities, equities and were short the dollar against pretty much any other currency, then this should have been a very successful week of trading. The dollar has been heavily sold against the majors, with respective multi-month highs and lows. The week has had 3 major events the German constitutional court announcing that the formation of the ESM wasn’t unconstitutional, the Dutch elections and Ben Bernanke turning on the taps of the antici…

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Following the attack on the US embassy in Libya and the murder of the US ambassador, commentators are citing the possibility of the unrest spreading across the region. Anger was vented against the US in retaliation to a film published by a US citizen that was felt mocked and undermined the Islamic faith. If there is unrest spirals and is widespread this is likely to impact on Oil prices due to the stability in the Middle Eastern region. Expectation and rumours surround the capped EURCH…

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In a controversial plan Vince Cable the Business Secretary, will announce the plans today for a government-backed corporate lender. This is an attempt to reignite lending and reinvigorate the UK economy, though firmer details as to the scale and setup are yet to be decided. I personally think that this is a backwards step and that a regulated banking sector is the solution rather than a politicised government lendeThe new Chief Executive of Barclays Antony Jenkins has vowed to review each un…

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