Thursday 28th July 2016
NEWS TICKER: JULY 27TH 2016: The ESMA registers portal will undergo a technical update tomorrow. The machine-to-machine service will no longer support connections via SSL v1, SSL v2, SSL v3 and RC4 - All machine-to-machine services will be available via HTTPS only while HTTP connectivity will no longer be available. Full details are available on the portal itself – Twitter looked to have missed second-quarter revenue numbers and gave a gloomy outlook for growth in Q3. Q2 revenues of $602m and earnings per share of 13 cents disappointed analyst, who expected revenues of c.$607m, while EPS beat estimates of $0.10. Twitter says Q3 revenue will be somewhere between $590m and $610m. Twitter’s shares have dropped 20% year-to-date, and fell by more than 11% in after-hours trading after its results were announced. The firm says it believes advertising will migrate to video and explained that is why it secured streaming rights to NFL and NBA games in the US. Chief operating officer Adam Bain says, “There is a whole new set of video budgets out there today. These are these online video budgets. It’s about a $10bn marketplace in the US. These are video budgets that today we basically don’t qualify for, since the spend is going in other areas.” However, investors look to be wary of whether user growth (up only 1%) will meet expectations. The next benchmark report will be from Facebook (expected today), which analysts think will be strong. - Deutsche Bank AG reports that its second-quarter net income fell 98% from a year earlier, hurt by weaker performances in trading and investment banking, as well as restructuring costs. John Cryan, chief executive officer of the German bank, said that more needs to be done to control costs and that low interest rates will increasingly affect customers -- Verizon Communications has agreed to a $4.83bn cash deal for Yahoo's web assets as it looks to grow its digital media and advertising business - Apple reports a 15% drop in Q3 revenues because of falling iPhone sales, revenue and average selling price. Moreover, the firm’s market share of global smartphone shipments also fell off in Q1 by as much as 3 percentage points to 14.8% following a couple of years’ worth of impressive growth, particularly in China. Apple is meeting growing competition from Chinese smartphone vendors such as Huawei, Oppo and Xiaomi. Apple reported an overall decline in revenues of $7bn to $42.4bn in Q3, down 15% year on year, mostly due to a drop in iPhone shipments - The Catalan Parliament has voted 72-10 in favour of the conclusions of a pro-independence "constituent process" report today, a move that opposition parties, two of which abandoned the chamber in protest, described as "wholly illegal". MPs from the Popular Party in Catalonia (PPC) and Ciudadanos left the chamber in protest before the vote took place. Catalan Socialist Party (PSC) MPs remained seated but did not vote. The report, commissioned by separatist parties in the parliament, recommend measures that could lead to a unilateral declaration of independence. Earlier this month, the Spanish Constitutional Court warned the Catalan Parliament that its commission could not study "the opening of a constituent process in Catalonia that leads to the creation of a future Catalan constitution and an independent Catalan state". Esquerrra (ERC) leader Oriol Junqueras tweeted that "we have the democratic mandate to build a new country, clean and fair, and a mandate, for us, is a duty!" -- Jan Dehn, head of research at Ashmore, in a client note today made the case for allocating to emerging markets, even if uncertainties linger in developed markets. He suggests that whilet there are some risks involved, they are fairly priced, and insists that the fears pertaining to EM are misplaced. “Emerging Markets (EM) have performed a lot better this year than for some time. EM currencies are outperforming the Dollar and EM local bonds are up strongly year to date in Dollar terms. Despite the rally EM bonds still pay about 5-6 times higher yield than similar duration bonds in the US, while many other developed market bonds pay negative yields. The reasons for EM’s better performance are many, including better valuations, stronger technicals and improving relative and absolute fundamentals. As recently as last week, the IMF revised down developed market growth again, including -0.2% revisions of US and UK growth. China’s growth forecast was revised up.” -- The EBRD is considering extending a loan of up to $180m to RGP Kazvodkhoz (the "Company"), wholly owned by the Government of Kazakhstan, for rehabilitation of the water supply and irrigation infrastructure in South Kazakhstan, Zhambyl and Aktobe regions of Kazakhstan. The loan will be backed by a sovereign guarantee -- The unit of Royal Dutch Shell Plc plans to launch an IPO in October involving up to 330m primary and secondary shares (some 18.6% of the company’s shares) at up to P90 per share, with a listing on the Philippine Stock Exchange tentatively set for November 10th. The IPO is now awaiting regulatory approval and follows on from the recent$532m maiden issue by cement maker Cemex Holdings Philippines. Manila’s benchmark stock index touched a 15-month high last week, with investor confidence boosted by the country’s economic performance --

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BlackRock index update reveals global market moves

Wednesday, 16 January 2013
BlackRock index update reveals global market moves BlackRock has released its quarterly update of the BlackRock Sovereign Risk Index (BSRI), showing key movements by Australia, China, India, Japan, New Zealand, South Africa and the United States. The BSRI provides investors with a framework for tracking sovereign credit risk in 48 countries, drawing on a pool of financial data, surveys and political insights. http://www.ftseglobalmarkets.com/

BlackRock has released its quarterly update of the BlackRock Sovereign Risk Index (BSRI), showing key movements by Australia, China, India, Japan, New Zealand, South Africa and the United States. The BSRI provides investors with a framework for tracking sovereign credit risk in 48 countries, drawing on a pool of financial data, surveys and political insights.

The update also contacts the newly created interactive BSRI, which allows for viewing individual country scores, comparing two countries and sorting overall rankings by index components. The BSRI was developed through the BlackRock Investment Institute (BII) in June 2011, in recognition of the growing focus by investors around world on sovereign risk debt. The BSRI uses more than 30 quantitative measures, complemented by qualitative insights from third-party sources.

Highlights of the report include Japan’s fall in the rankings as a result of its sharply deteriorating fiscal balance – a space worth monitoring in 2013 as a new government and central bank governor settle in. “The fiscal profile of Japan worsened enough to cause it to slip two spots to 35th place, even as its other BSRI components improved. Japan now ranks just ahead of South Africa but below the likes of Turkey, Indonesia and Slovakia,” according to the BII.



The US remained at 15th place even as it teetered on the edge of the “fiscal cliff” of automatic tax hikes and spending cuts. "The last-minute deal was better than nothing, we think, but its limited scope means more tortured budget talks – and market volatility – ahead,” BII strategists said.

China, Australia and New Zealand moved up in the rankings, with Australia jumping three spots due to an improved primary budget balance. “China rose two spots to 16th place on the back of higher government revenues as a percentage of GDP. China’s ‘Willingness to Pay score’ improved due to the relatively smooth once-a-decade leadership change,” according to the report.

India remained at 39th place, but the country’s profile improved on most fronts, according to the BII: “India’s ‘Fiscal Space’ improved on a lower debt-to-GDP level and an improving primary balance. Among major BSRI movements, the BII also noted that South Africa dropped two notches to 36th place: “South Africa slid two spots to 36th place mainly due to a rapidly worsening current account deficit. Anecdotal evidence has money fleeing the country at a rapid pace, and the BSRI appears to reflect this.”

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