Archive - July, 2013

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Today’s breakdown of the Sunday papers: China RMB debate: The renminbi’s road to full internationalization http://www.euromoney.com/Article/3229831/China-RMB-debate-The-renminbis-road-to-full-internationalization.html The chief executive of Wonga has defended the payday lender by claiming it is “a powerful force for good in the financial world.” http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10206825/Wonga-is-a-force-for-good-f…

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Facebook Inc - setting foundations to flourish The questions were always could they monetise the vast traffic and global dominance...and it seems they can. However we still need to put the performance into perspective. Since Facebook’s IPO in May 2012, it has fallen 10% whilst the Nasdaq and Google have risen 29.7% and 47.9% respectively. Facebook today closed at $34.61, up $7.85 or 29.61%.…

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All eyes on China and commodity markets as Premier Li Kequang announces 7% floor on growth. Premier Li Kequang was quoted as saying that economic growth could not dip below 7% as that was the required rate to ensure the Chinese economy doubles in size this decade. A 7% growth rate would however be the lowest level of growth since 1990, although some have remained sceptical of the figures produced by China. China had originally set a growth target of 7.5% for 2013 at the annual se…

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China has been propelled to the position as a major global economic power in the last few decades. It has experienced sustained periods of unrivalled economic growth. Double digit GDP figures are something that the western world could only dream of, with the smallest positive print being hailed as a success. What has fuelled the Chinese economic growth? China has witnessed a consistent boom period, that has thrust the country to the status as the world’s second biggest econ…

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On Wednesday the FOMC released the minutes for their meeting held June 18th and 19th. Fed Chairman Ben Bernanke had signalled to the markets that he intended on tapering the quantitative easing later this year. The minutes stated that certain members of the FOMC proposed that a reduction in asset purchases could be warranted sooner than Bernanke’s “end of the year” stance. Following the release of the minutes, the Fed Chairman gave a speech in Boston attempted to ref…

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US traders come back to their desks today following the public holiday for Independence Day, and are greeted by the pivotal US jobs release. What are US Non-Farm Payrolls? The US Department of Labor releases a monthly employment report for goods, construction and manufacturing. It is usually release on the first Friday of the month; though this can differ (it is officially the third Friday after the end of the reference week). Median estimate Each month analysts attem…

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*In the US it is a national holiday today, Independence day. This will affect the trading hours of certain markets with us remaining closed for the session, please see your client emails for further details* The markets seem relatively subdued this morning ahead of BoE and ECB announcements, with the US closed for Independence Day volumes are likely to be lower. Bank of England Mark Carney began his term as the first foreign national to become the Governor at the Bank of En…

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This morning the Ex-Bank of Canada Governor begins his role as the new Bank of England Governor, taking over from Sir Mervyn King. Carney is the first foreign national to hold the senior post on Threadneedle Street, and many are hoping he will be able to work miracles. The UK economy is just beginning to show the green shoots of a recovery following a deeper recession than previously thought according to the ONS. The BoE has attempted to reignited growth with ultra-loose monetary polic…

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