Tuesday 21st April 2015
NEWS TICKER MONDAY APRIL 20TH 2015: European President Donald Tusk has called an extraordinary European Council on migratory pressures in the Mediterranean for Thursday this week to discuss how to tackle the growing tragedy of hundreds of would-be immigrants dying at sea on the way to trying to build a better life. “The situation in the Mediterranean is dramatic,” says Tusk. “It cannot continue like this. We cannot accept that hundreds of people die when trying to cross the sea to Europe. The objective of the summit is to discuss, at the highest level, what we, the Member States and the EU institutions together, can and must do to alleviate the situation now. I do not expect any quick-fix solutions to the root causes of migration - because there are none. Had they existed, we would have used them long ago. But I do expect that the Commission and the European External Action Service will present options for immediate action. And I do expect Member States will contribute immediately.” – The Nasdaq Stock Market says trading was halted today in ForceField Energy Inc (Nasdaq:FNRG) at 10:21:37 Eastern Time for "additional information requested" from the company at a last price of $3.11. Trading will remain halted until ForceField Energy Inc. has fully satisfied Nasdaq's request for additional information. For news and additional information about the company, please contact the company directly or check under the company's symbol using InfoQuotes on the Nasdaq web site - PEGAS, the pan-European gas trading platform operated by Powernext, successfully launched physically settled Spot and Futures contracts, quoted in pence per therms, for the Belgian Zeebrugge Beach (ZEE) gas hub on April 17th 2015. On the same day, a Daily Average Price index for the Zeebrugge Trading Point (ZTP) in Euros per Megawatt-Hour was introduced. The first transaction was completed on the first trading day at 08:49 AM CET on ZEE May 2015 contract at 45.025 pence per therm with a volume of 25,000 therms. This represented the first cleared futures trade ever made on the Zeebrugge hub. 14 trading members are set up for trading of the new products, with more members currently in the process of being admitted. “With the addition of the new ZEE contracts and with the ZTP and ZTPL (ZTP L-gas) products launched in July 2014, PEGAS is offering new trading opportunities through the widest range of products in two of the most important European hubs”, comments Dr Egbert Laege, chief executive officer of Powernext. Moreover, PEGAS is now providing a new ZTP Daily Average Price (DAP) index which is the weighted average of all transactions during a trading day - The value of real estate trades in Kuwait fell by 27% to KWD956m and the number of transactions fell by 28% to 692 in the first quarter this year according to statistics from the real estate registration department at the Ministry of Justice - The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) have pledged to enhance cooperation to respond more effectively to the needs of their common membership in a Memorandum of Understanding (MOU). The AMF and the IMF share common objectives of maintaining macroeconomic and financial stability, and accelerating broad-based and inclusive economic growth and job creation in the Arab region, in addition to strengthening capacity building. Under the MOU, the AMF and the IMF will continue to provide training opportunities to Arab officials, support the development of domestic capital markets in the Arab countries, and strengthen their collaboration on the Arabstat initiative, which aims at the development of efficient statistical systems in the region. The two parties also intend to carry out joint analytical work to inform Arab finance ministers and central bank governors, and to organise high level events on topics of mutual interests and priority for the region – The Kuwait Turk Bank will open in Frankfurt in July offering Shari’a compliant retail banking services having just received a licence from German market authorities. The bank already has a branch in Mannheim, but this new licence will allow it to operate as a fully functional bank in the country - The Joint Committee of the European Supervisory Authorities (ESAs) is organising the third Joint ESAs Consumer Protection Day on 3 June 2015 in Frankfurt am Main. The event will bring together, from all over Europe, thought leaders of consumer/investor organisations, national regulators, EU institutions, academics and key market participants. The keynote speech will be delivered by Jonathan Hill, European Commissioner for Financial Stability, Financial Services and Capital Markets Union. The focus will be on conduct risk; the next decade in the banking, insurance, pensions and securities sectors and the growing digitalisation of financial services. The Joint Committee of the European Supervisory Authorities consists of the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA), and the European Insurance and Occupational Pensions Authority (EIOPA). The Straits Times Index (STI) ended 21.94 points or 0.62% lower to 3503.25, taking the year-to-date performance to +4.10%. The top active stocks today were SingTel, which declined 1.12%, DBS, which declined 0.80%, Keppel Corp, which closed unchanged, CapitaLand, which declined 1.09% and UOB, with a 0.29% fall. The FTSE ST Mid Cap Index fell 0.32%, while the FTSE ST Small Cap Index fell 0.57%. The outperforming sectors today were represented by the FTSE ST Health Care Index, which rose 1.77%. The two biggest stocks of the Index - Raffles Medical Group and Biosensors International Group – ended 1.02% higher and 5.03% higher respectively. The underperforming sector was the FTSE ST Utilities Index, which slipped 1.65%. United Envirotech shares rose 3.15% and Hyflux declined 1.07% - The performance of the UK buy-to-let (BTL) residential mortgage-backed securities (RMBS) market remained steady in the three months ended February 2015, according to the latest indices published by Moody's Investors Service. The 90+ day delinquency rate and outstanding repossessions stood at 0.7% and 0.1% respectively in February 2015, unchanged from November 2014. Moody's annualised total redemption rate decreased to 9.3% in February 2015 from 11.2% in November 2014, representing a 17.5% drop - Proserv and hazardous environment specialist JCE Group (UK) Limited have announced a strategic working partnership in the Middle East and Africa (MEA) region. The agreement will see Proserv supporting JCE Group by offering its products and services whilst also delivering in-country engineering and technical support. Together, the companies aim to further build on their industry-leading standards of quality, service and reliability, and help cultivate a world-class QHSE culture - Deutsche Asset & Wealth Management (Deutsche AWM) has launched a physical replication exchange-traded fund (ETF) tracking the JPX-Nikkei 400 Index of Japanese stocks. At the same time, three new currency-hedged share classes of existing db X-trackers ETFs have also been listed. db x-trackers JPX-Nikkei 400 UCITS ETF (DR)1 tracks an index of 400 Japanese stocks selected on the basis of quantitative and qualitative screening. As the underlying index is not a standard capitalisation-weighted benchmark the ETF falls into the strategic beta – also known as ‘smart beta’ – category of investments.

The push and pull of willpower & politics

Friday, 25 May 2012
The push and pull of willpower & politics June will be a battle between political will and economics. While European leaders continue to insist that they want Greece to remain in the eurozone, they are continually being reminded of the economic reality that a break-up of the single currency is almost certain. What is becoming more apparent day by day is that the markets will simply not allow the likes of Greece to have their cake and eat it without paying for it too. Whether Europe’s politicians will listen to those market siren calls for change has yet to be determined. http://www.ftseglobalmarkets.com/

June will be a battle between political will and economics. While European leaders continue to insist that they want Greece to remain in the eurozone, they are continually being reminded of the economic reality that a break-up of the single currency is almost certain. What is becoming more apparent day by day is that the markets will simply not allow the likes of Greece to have their cake and eat it without paying for it too. Whether Europe’s politicians will listen to those market siren calls for change has yet to be determined.

If the Germans and French remain reluctant to put their money in the pockets by either using the ECB’s potential firepower or create a special eurobond then they could themselves become the very nemesis of the single currency that they tell us they are so desperate to keep. Even so, risk aversion continues to whittle down the markets; at the time of writing the index is at 5380, down some 25 points. Traders are watching term support trends at 5335, 5300 and 5275; hopeful bulls out there will be looking for resistance at 5490, 5615/45. This near term downward trend sees the index capped by a downward trend line that also puts some resistance at 5450. Over the longer term now that the index has broken below its 200 day moving average and its upward trend line a close below 5400 could been seen as very negative and we’re now in the ­territory of people not wanting to catch a falling knife.

While immediate market focus will remain on Europe and its affect on the macro picture, there are a couple of important pieces of data that UK investors should note. First, following a surprising improvement in April, unemployment numbers are likely to show a weakening labour market.  There’s little in the way of encouraging data from the UK at the moment, but last month’s data was the first ­indication that unemployment is ­starting to peak. Job creation has come largely from part time rather than ­permanent work and the tick downwards to 8.3% in the rate of unemployment is expected to rise back to 8.4%. Second, it will be interesting to see whether the upcoming Bank of England’s inflation report will encourage the central bank to stick to their hawkish guns or whether the ­confirmation of the double dip recession and a further downgrading of growth projections will result in a more dove-ish tone.



Other European indicators are not great either: Italian ten year yields have crossed back above 6% and for Spain back above 6.5%, meanwhile risk adverse investors piled into German bunds driving their cost of borrowing even lower. This is classic fear gripping the markets once again as the vicissitudes of 2012 look to be playing out in a very similar fashion to 2011. Financial markets detest uncertainty and at the moment they are riddled with them since Greece has been unable to form a government and has had to call for a new round of  elections on 17th June. Up until that point we can expect volatility to remain high and continued pressure to the downside.

The euro made a low of $1.2720 as the situation in Greece continues to deteriorate. Bears sold the single ­currency heavily after socialist leader Evangelos Venizelos announced that talks to form a coalition government had failed and that the public would have to go back to the polls next month. Gold continued to fall as traders dumped risky assets and piled into the safety of the US dollar. Spot gold traded as low as $1541 an ounce.  With little technical support seen until $1531 and no turn around in Greece on the horizon, the down trend looks set to stay firmly in place.

On top of all the European woes there’s also the growing concern that China is slowing down quicker than was previously thought. Add any downturn to the euro crisis and it has negative connotations for global growth.

As ever, ladies and gentlemen, place your bets...

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