Archive - October, 2012

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US Exchanges are expected to reopen as normal today at 9:30am (ET), following the closure for two days due to hurricane Sandy. The storm has caused considerable destruction and devastation across the North Eastern coast of the US. It is estimated that there has been over 40 deaths and the cost is expected to exceed $10bn. Transportation across the region has come to a standstill as trains and busses were halted and flights grounded to avoid the storm. Sectors to watch are the insurance, indu…

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**US Exchanges will be closed again today due to Hurricane Sandy, this means that Abshire-Smith clients are unable to trade US Indices** Headlines UBS shares rally after announcement of cost cutting , with the loss of 10,000 jobs in the investment bank Direct Line cuts 70 jobs in senior management as part of £100m cost saving plans by 2014 New Look has moved to reassure suppliers over its financial position, following an industry blog stating it was poised to en…

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The NYSE and Nasdaq trading will be halted for trading today, for the first time in 27 years due to Hurricane Sandy. Evacuation orders have been put in place in low lying coastal areas on the North East of the United States due to the risk of flooding. The NYSE has revised its initial release that it was to close physical floor trading, to cease all trading on Monday and possibly Tuesday. Headlines Bank of England’s Spencer Dale has warned that Britain is heading into a sha…

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It’s the final trading session of the week, yesterday traders and politicians alike were discussing the positive UK growth figures and exiting the recession. Analysts were quick to note the 1% print was due to the Olympics and Jubilee effect rather than a sustained recovery. These contributing factors were one off events that will not be in future quarters to assist in the UK recovery. The economic ride for the UK is expected to be a bumpy one, though this positive figure has led econo…

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During the Asian session, the Reserve Bank of New Zealand (RBNZ) left their base interest rate on hold at 2.5%. The central bank expects firmer growth for the final quarter of the year and into 2013, with the markets expecting no further interest rate cuts, the Kiwi Dollar rallied following the release. UK GDP is released at 9:30am (London) and is expected to show expansion, and that the economy has pulled out of recession. David Cameron has come under fire from the opposition for a su…

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Overnight the Reserve Bank of Australia (RBA) release its minutes from the October 2nd meeting, when the central bank cut rates by from 3.50% to 3.25%. The dovish tone of the minutes noted of the expected weaker growth next year and the decline in appetite for business spending. The strength of the Aussie was also highlighted as it remains high by historical standards. AUDUSD dropped following the release around 20 pips, but the minutes had no further detail or surprises the cross retraced t…

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Another week begins and it is the first trading day of the week. Chinese data released on Saturday was better than expected giving Asian markets a lift from the open. However sentiment faded as markets focused on the continuing uncertainty in Europe. It is thought that Virgin Money may purchase the 316 RBS branches that need to be sold by the end of the year. Under the European regulations the bailout conditions stipulate that RBS must sell the branches by year end or incur large fines…

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Goldman Sachs's Cohn sees slim chance Euro countries will stick together - Bloomberg RBS raises $1.3bn in Direct Line IPO Telefonica said to get $5.5bn dividend before German initial offer – Bloomberg S&P’s downgraded Spain’s sovereign debt ratings to BBB- from BBB+, with a negative outlook Australia's unemployment rate rose to an almost two-and-a-half-year high of 5.4% in September…

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BP’s billionaire partners in RNK-BP say they want to sell or list their 50% stake in the business – Financial Times BP sells off its Texas City assets for $2.5bn, severing ties with the refinery where 15 people were killed in 2005 -CityAM Moody’s downgraded Cyprus’s government bond ratings to B3 from Ba3, negative outlook State Street and Bank of NY Mellon will charge depositors interest to hold Swiss francs and Danish Kroner – Bloomberg…

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Regulator warns on big four accountancy firms alumni, contributing to stifling competition -Financial Times Libor is currently being set by a smaller group of banks (Bank of America, Citigroup, Bank of Tokyo Mitsubishi UFJ, Royal Bank of Canada, Sumitomo Mitsui Financial Group and Lloyds Banking Group) impairing the rate further –Bloomberg George Osborne Chancellor of the Exchequer will find out the full list of candidates to replace Mervyn King from (I assume Bob Diamond w…

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If you live in the western world, then unless you have been living under a rock, you will know what Facebook is and hear colleagues, friends and children discuss it on a near daily basis. For many it is a part of their daily routine of logging in to Facebook to check updates and pictures from their friends. If you have somehow not come across the social media platform, then Facebook was a social experiment setup in Mark Zuckerberg's dorm room, which has grown to have over 1 billion users…

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Analysts and traders have been eyeing the slowdown of China as the source of the next financial crisis for many years. The Chinese economy has grown at envious levels to all in the west for well over a decade. As the western economies have gone into melt down, China has continued to demand raw materials, at an unprecedented level and produced low costs goods, with its cheap labour force. The PBOC has come under criticism for holding the exchange rate artificially low to remain competit…

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As expected the curtain fell on JJB Sports, with 2,200 redundancies and 133 shop closures. The remaining units have been sold to Sports Direct. The company had been on the brink of collapse for some time; with the share price collapsing after the company put itself up for sale. It is a blow for the high street as another chain has gone bust which will leave further empty units in the UK. The Reserve Bank of Australia cut its interest rates overnight by 25bps to 3.25% which was only pre…

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Chinese official PMI improved to 49.8 in Sep from 49.2 in Aug Fitch Ratings on Friday maintained Britain’s “AAA” credit rating with a negative outlook, warning that weak economic growth and a rising debt level was increasing the likelihood of a downgrade The board of Xstrata has recommended a £52bn all-share merger with Glencore - Daily Telegraph Greece will receive the next aid tranche even though the troika report uncovers some failure and offer th…

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