Investors warned to expect “bull market episode”
June 5, 2009 – 2:26pm | author: Petrony | Investment industry | News
In investment report recently presented by MFS Investment Management of Boston James Swanson, chief investment strategist at MFS said that the economy will stop shrinking later this year. As he thinks the current stock market rally may be a forerunner of economic recovery. Although, as he added later, this rally, which began March 9, may not be a sustainable one, but more of a “bull market episode”.
“We may be on the way to a secular bull market,” Mr. Swanson said. “But I think the sustainable bull market will begin during the summer sometime. This may not be it. It could be liquidity driving stock prices up.”
But investors should be wary, he said. “In a bull market rally, 60% of the price should be driven by the market. For a sustainable bull market, you also need to see rising volumes, and we haven’t had rising volumes with this rally.”
But still he believes economic recovery is not far off. According to Mr. Swanson, housing market should stabilize in August because of government’s efforts to keep mortgage rates low.
After recovery of US economy, the United States will lead the way to a global recovery, followed by China and the rest of the emerging markets, Mr. Swanson said. By that, he suggests investors to add international exposure to their portfolios. “China will go back to 10% growth, which means there are a lot of earnings to come out of these emerging countries,” he said. “Looking to long-term growth, Americans should increase their portfolio weight internationally.”
Other ideas that he suggests investors to consider are Treasury inflation protected securities, dividend-paying stocks and high-grade corporate bonds with five- to seven-year maturities.
According to Mr. Swanson after economic recession ending the inflation rate will not develop for a year and is expected to be 2%. As he said, the cheapest stocks are international, large-cap companies with low debt and high-credit ratings.
ICBC purchases 70% of Bank of East Asia’s Canadian unit
June 5, 2009 – 2:26pm | author: Petrony | Banks and internet banks | News
The world’s largest bank by market value Industrial and Commercial Bank of China (ICBC) declared on Thursday about its intension to acquire 70% of Bank of East Asia’s Canadian unit. In such a way ICBS is expanding overseas.
According to those both banks, ICBC will pay $73 million (HK$567 million) for the stake. Also they added that Hong Kong-based Bank of East Asia would buy out ICBC in ICEA Finance, their Hong Kong joint venture. Here, Bank of East Asia will pay HK$372 million for the 75% of the venture held by ICBC. Another 25% has already belonged to Bank of East Asia.
“We are selling the stake to ICBC because they have lots of customers, so this will enlarge the pie,” Bank of East Asia Deputy Chief Executive Samson Li said.
The Bank of East Asia acquisition occurs in spite of stricter stance of Chinese regulators on overseas acquisitions by major financial institutions since negative investment experience of some huge financial institutions.
Fed reports banks increased their borrowings to $41.9 billion a day
June 5, 2009 – 2:15pm | author: Petrony | Articles | Banks and internet banks
The Federal Reserve on Thursday said that commercial banks increased their borrowings from Fed’s emergency lending program over past week. They borrowed in average $41.9 billion daily over the week that ended Wednesday, comparing to $38.2 billion in the week ending May 27. At the same time investment firms didn’t borrowed over the past week from the Fed program. Last time they drew a loan was in the week that ended May 13. The total amount of loans was just $482 million. Both types of financial institutions pay just 0.5% in interest for the emergency loans.
Also Fed’s report showed that the Fed’s average net holdings of commercial papers decreased by $9.6 billion, coming to $145.1 billion over the week that ended Wednesday. Fed began buying them on Oct. 27, a time of intensified credit problems.
According to that report, the Fed detruncated its purchases of mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. They were shortened by $3.3 billion, arriving to average amount of $427.6 billion over the past week. This program of the Fed was goaled to help housing market by driving down mortgage rates. It started January 5. First after Fed’s declaration about this program mortgage rates have dropped. But rates have been rising in recent weeks. As Freddie Mac reported Thursday rates on 30-year home loans jumped to the highest weekly average in nearly six months – from 4.91% last week to 5.29% this week.
In order to pull down rates on mortgages and other consumer debt the Fed in March declared about its intension to purchase up to $300 billion worth of Treasury securities over the next 6 months.
The report also said that the credit provided to AIG slightly decreased last week, averaging to $43.6 billion.
Forex news: Pound extends its downtrend versus majors
June 5, 2009 – 1:52pm | author: kara deniz | Markets | News
During Friday early European session, sterling lost ground against its main rivals, touching a 15-day low against the European currency and the Swiss franc as concern over the stability of the U.K. government reduced demand for sterling. Pound also weakened against its US and Japanese counterparts, falling to 1-week and 4-day lows, respectively.
Against its US rival, the British pound edged down during early European deals on Friday, slipping to an 1-week low of 1.6020 At 2:50 am ET, with 1.588 seen as the next resistance point. Cable close Thursday’s New York deals at the level of 1.6177.
Against the European currency, pound, that closed yesterday’s late deals at the level of 0.8769, moved down to 0.8870 at 2:50 am ET Friday, setting the lowest point for the British currency since May 21, 2009. On the downside, EUR/GBP rally would find resistance around 0.8918.
Pound also weakened to a 15-day low of 1.7127 at 2:50 am ET Friday against the Swiss franc early in Europe, compared to yesterday’s close at 1.7300. GBP/CHF pair was likely to slide down to 1.668 further.
During early European session today sterling extended its Asian session downtrend against the Japanese yen, setting a 4-day low of 154.98. That may be compared to Thursday’s North American closing value of 156.24. The pair would see 147.9 as the next downside target level.
Gold near $975 as traders were cautious about US employment report
June 5, 2009 – 1:33pm | author: Petrony | Markets | News
On Friday gold was softer near $975 as traders became concerned about the possible data on employment. As it was reported on Thursday gold rose around 2% after Goldman Sachs raised its forecast for oil prices at the end of 2009 to $85 a barrel from $65, triggering inflation-hedge buying of gold.
“I think there’s a sense of caution in the market as gold nears the $1,000 mark,” said Shuji Sugata, a manager at Mitsubishi Corp Futures & Securities in Tokyo.
Gold was at $977.60 per ounce at 0520 GMT, down 0.2 percent from New York’s notional close of $979.10. U.S. gold futures for August delivery GCQ9 were at $979.10 per ounce, down 0.3 percent.
In other closely followed data, the world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust GLD, said holdings remained at 1,132.50 tonnes as of June 4, unchanged from the previous business day. Holdings remain within sight of the record high of 1,134.03 tonnes marked on June 1, however.
Changes in gold ETF holdings are closely watched by market participants because sharp inflows into them could be a bullish signal that longer-term retail investors are entering the market.
Precious metals prices at 0525 GMT:
Metal Last Change
Change % change YTD % change Turnover
Spot Gold 977.30 -1.80 -0.18 11.04
Spot Silver
15.78 -0.07 -0.44 39.40
Spot Platinum 1271.50 -19.00 -1.47 36.43
Spot Palladium 251.00 -1.50 -0.59 36.04
TOCOM Gold 3053.00 47.00 +1.56 18.66 43435
TOCOM Platinum 3976.00 129.00 +3.35 49.92 23220
TOCOM Silver 489.50 15.80 +3.34 53.30 590
TOCOM Palladium 790.00 29.00 +3.81 43.64 814
TOCOM prices in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices in $ per ounce.
Forex news: yen declines for the third time against euro on a weekly basis
June 5, 2009 – 12:25pm | author: Petrony | Markets | News
On Friday the yen dropped heading for a third weekly loss against the euro, as Asian stocks advanced on speculation the worst of the financial crisis is over, spurring demand for higher-yielding assets.
The yen weakened against 11 of the 16 major currencies before a U.S. report today that may show employers cut fewer jobs last month, damping demand for the relative safety of Japan’s currency. The euro strengthened for a fourth day versus the British pound after European Central Bank President Jean- Claude Trichet said yesterday the region’s economic performance will improve this year.
The yen fell to 137.37 per euro as of 7:21 a.m. in London, from 136.97 yesterday in New York, heading for a 1.7 percent drop this week. Japan’s currency slid to 96.76 per dollar from 96.58, set for a 1.5 percent weekly loss.
Australia’s dollar climbed 0.5 percent to 77.80 yen. New Zealand’s dollar climbed 0.4 percent to 61.49 yen. Australia benchmark interest rate is 3 percent and New Zealand’s is 2.5 percent, compared with 0.1 percent in Japan, luring investors to the South Pacific nation’s higher returns.
The Nikkei 225 Stock Average rose 1 percent and the MSCI Asia Pacific Index of regional shares gained 0.6 percent. The Reuters/Jefferies CRB index of 19 commodities surged 2.6 percent yesterday, approaching the six-month high reached June 2.
The pound fell 0.5 percent to 155.44 yen.
Check Point helps Internet users to detect phishing sites and avoid ID theft
June 5, 2009 – 10:00am | author: Petrony | Fraud | News
Check Point® Software Technologies Ltd., the worldwide leader in securing the Internet, declared that ZoneAlarm ForceField, virtualized browser security solution, provides additional layers of protection and helps divert users away from malicious Web sites, delivering the highest level of security needed to stop sophisticated attacks from infecting consumer PCs.
ForceField has extra security layers that augment its virtualization capability, such as heuristic anti-phishing and site ratings, designed to analyze websites and if malicious, caution the user not to download anything from the site or enter personal information. In addition, ZoneAlarm anti-virus solution has been updated to offer automatic protection against Gumblar.
Once infected, anything the victim types could be monitored and used to commit identity theft, such as stealing credit card numbers, Web passwords or other sensitive data.
Visitors face a risk of having search results replaced with links that point to other malicious websites. The malware can steal FTP credentials from the victim`s computer and use them to infect more sites. So far, more than 3,000 Web sites have been attacked.
Check Point helps Internet users to detect phishing sites and avoid ID theft
June 5, 2009 – 10:00am | author: Petrony | Fraud | News
Check Point® Software Technologies Ltd., the worldwide leader in securing the Internet, declared that ZoneAlarm ForceField, virtualized browser security solution, provides additional layers of protection and helps divert users away from malicious Web sites, delivering the highest level of security needed to stop sophisticated attacks from infecting consumer PCs.
ForceField has extra security layers that augment its virtualization capability, such as heuristic anti-phishing and site ratings, designed to analyze websites and if malicious, caution the user not to download anything from the site or enter personal information. In addition, ZoneAlarm anti-virus solution has been updated to offer automatic protection against Gumblar.
Once infected, anything the victim types could be monitored and used to commit identity theft, such as stealing credit card numbers, Web passwords or other sensitive data.
Visitors face a risk of having search results replaced with links that point to other malicious websites. The malware can steal FTP credentials from the victim`s computer and use them to infect more sites. So far, more than 3,000 Web sites have been attacked.
Steve Jobs is returning to active work at Apple as scheduled
June 5, 2009 – 9:14am | author: Petrony | News | Other themes
Steve Jobs, a chief executive officer, of the leading hi tech company Apple Inc., will reportedly return to the company soon from his medical leave of absence as planned, says the Wall Street Journal citing the sources familiar with the situation. According to the Journal Jobs will return by the end of the month.
As Jobs had said his medical leave would run until the end of June when he initially announced the move in January, setting the stage for a July return. Besides, company officers also said repeatedly that Jobs was actively involved in the strategic decisions and would come back as scheduled.
As it is known Jobs was treated for a rare type of pancreatic cancer in 2004. Last June at an Apple event and in January Steve Jobs said that he would take a leave of absence because his health problems were “more complex” than originally thought.
The report also said two people who do business with Apple have been told by Apple managers that the company is trying to coordinate Jobs’ return with a product launch or public event.
IMS announces e-statements and online bill-pay option
June 5, 2009 – 9:29am | author: Petrony | News | Payment systems
International Monetary Systems, Ltd., a provider of business-to-business barter services, announced that it had launched a new electronic monthly statement notification with online bill-pay option. International Monetary Systems (IMS) serves 17,500 businesses representing 23,000 cardholders in 50 North American markets. The company’s proprietary transaction clearing software, Trade Network Tracking (TNT) System, enables businesses and individuals to trade goods and services online using an electronic currency known as trade dollars.
Dale Mardak, Senior Vice President of IMS, commented: “This new capability is in line with so many others that IMS has launched in recent months. It provides members an immediate notification of their monthly statement that shows their trading activity for the month and the fees associated with it. It also gives members the chance to link to important features of their membership such as the online barter marketplace and travel center.”
John Strabley, Executive Vice President of IMS, commented: “This is an evolutionary step towards becoming a company that uses less paper and more innovation. The link to online statements is one of many such advances that IMS will be making this year.”
IPayX introduces eHealthPay ServiceSM online payment service
June 5, 2009 – 9:24am | author: Petrony | News | Payment systems
Internet Payment Exchange (IPayX), a provider of electronic billing and payment (EBP) technology and customer service solutions, launched eHealthPay ServiceSM, an affordably priced, PCI DSS certified, online payment solution meant for healthcare providers to enable them to offer electronic payment options to patients and guarantors.
eHealthPay ServiceSM enables healthcare consumers to make credit card payments online, over the phone or at time of service. Other features of eHealthPay ServiceSM include:
• A robust set of customer service support tools including transaction search, detail and summary reports and an ad hoc query tool for on-demand reporting
• The ability to electronically void or refund full or partial payments
• A “Quick Pay” link that can be embedded in a company’s existing Web site
• A consumer-facing online portal branded with the provider’s logo and graphics for those without an existing company Web site
With eHealthPay payment information is supplied to the healthcare provider in a daily remittance advice file or in detailed reports so both electronic (EDI 835) and manual posting are supported.
Universal Music Group
Sony launches Vevo media service with YouTube and Universal Music
June 5, 2009 – 9:33am | News | Other themes
The first major label Sony Corp`s Sony Music Entertainment establishes relationship with Google Inc`s YouTube and Universal Music Group and will sign on to the online music video service to be called Vevo, expected to be launched later this year. Sony will provide its music videos and other premium content from some of the world`s greatest artists to the site.
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google | online music | online video | Sony | Universal Music Group | YouTube
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Will YouTube be more successful partnering with Universal Music Group?
April 10, 2009 – 3:51pm | News | Other themes
YouTube and Universal Music Group have announced they would be partnering with the aim of launching an online music video venture, reports the Associated Press.
The venture is expected to launch later this year with Universal’s entire catalog of almost 10,000 music videos. It is also projected that the companies will share ad revenue on the Vevo.com site, on a Vevo channel on YouTube and on a tailor-made video player that can be placed on social-networking pages and other sites.
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