Thursday, May 19, 2016
Due to the possibility of another interest rate increase by the Federal Reserve as early as June it push the US dollar sharply higher against major Asian currencies Thursday, with the Chinese yuan at its weakest level since February and the Japanese Yep losing its recent gains. The U.S. dollar index rallied to a two-month high.
Experts didn't expect the possibility of an interest-rate increase in June, but the latest Federal Reserve minutes, along with a batch of strong economic data, have changed that view.
Asian currencies falls into multi-month lows as traders adjusted positions to reflect the interest-rate expectations. The Indonesian rupiah fall to its three-month low, as did Thailand’s baht, while the South Korea won, the Philippine peso and the Singapore dollar fall into two-month low against the U.S. dollar. The rise of the U.S. dollar also weakened the Japanese yen by nearly 1%.
MSCI's broadest index of Asia-Pacific shares outside Japan fall 1%, South Korea market fall by 0.6% while Australia were down by 0.8%.
Meanwhile, gold which are inversely correlated to monetary policy easing, fell 0.1% to a three-week low $1256 per ounce.
The stronger dollar also weighed on commodities such as oil, with U.S. crude futures losing 0.4% to $48.00 a barrel. A stronger dollar tends to put non-U.S. buyers of greenback-denominated commodities at a disadvantage.
Three-month copper on the London Metal Exchange fell to as low as $4563.50 overnight, the weakest since Feb. 19.
Friday, May 6, 2016
Asian markets are on the down trend on Friday as investors braced for the closely watched U.S. jobs-report that may influence interest rate decisions and the value of the U.S. dollar.
European markets are also expected to open for lower, with financial spreadbetter IG expecting Britain's FTSE 100 to fall 0.2% and Germany's DAX to start the day down 0.4%.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.9%, set for a weekly decline of 3.2%, the biggest drop in 12 weeks.
Japan's Nikkei, which resumed trading after being closed for holidays ("Golden Week" national holidays) since Tuesday, lost 0.3% to 16,106.72 as the yen's strength renewed concerns about corporate profits.
China's Shanghai Composite index was down 1.6%, wiping out most gains for the week.
Hong Kong shares retreated 1.2%, that puts their weekly loss to 4.1%. Australia's S&P/ASX 200 edged 0.3% higher to 5,358.60,
Wall Street shares were mixed on Thursday, with the Standard & Poor's 500 index's slight 0.02% drop nevertheless sending it to a three-week low. Dow Jones industrial average rose 9.45 points, or less than 0.1%, to 17,660.71.
Economists polled by Reuters forecast Friday's payrolls data will show U.S. employers added 202,000 workers in April following a 215,000 increase in March, with the jobless rate holding at 5.0 percent.
But job-related data published over the past couple of days has been softer than market expectations, casting a shadow on expectations of solid job growth.
Benchmark U.S. crude oil lost 33 cents to $43.99 a barrel in electronic trading on the New York Mercantile Exchange. It gained 54 cents on Thursday to $44.32 a barrel. Brent crude, used to price international oils, was down 29 cents at $44.72 a barrel in London.
Wednesday, April 27, 2016
Facebook is making major moves to ensure its founder Mark Zuckerberg remains in charge of the company. On Wednesday the company proposed a new class of stock named as "C shares", this will allow Mr. Zuckerberg to maintain control of the company. The new class of shares will enable the chief executive to protect and keep his voting power at the company, even as he begins an effort to give away the majority of his stock for charitable purposes.
Facebook said the move was “not a traditional governance model,” but it added that “Facebook was not built to be a traditional company.”
The company also revealed their first-quarter earnings, sales shoot up 52% to $5.3 billion from a year ago, Profit also increased to $1.5 billion from $512 million a year earlier. The company's profit was 77% a share, far surpassing Wall Street expectations of 62 cents a share.
First Quarter 2016 Other Financial Highlights
- Mobile advertising revenue – Mobile advertising revenue represented approximately 82% of advertising revenue for the first quarter of 2016, up from 73% of advertising revenue in the first quarter of 2015.
- Capital expenditures – Capital expenditures for the first quarter of 2016 were $1.13 billion.
- Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $20.62 billion at the end of the first quarter of 2016.
- Free cash flow – Free cash flow for the first quarter of 2016 was $1.85 billion.
Tuesday, April 12, 2016
Verizon will have a pretty big headache when more than 40,000 Verizon workers are preparing to go on strike at 6 a.m. ET on Wednesday if they have not reached a new labor agreement with the company.
The Verizon workers who are mostly service their traditional phone business have gone without a contract since August, according to the Communication Workers of America. The union says they are doing everything to prevent Verizon from moving jobs offshore or cutting benefits for injured workers.
Verizon said that if the strike goes forward, the company is prepared to continue to serve its customers. It said that thousands of non-union workers have been trained to cover new assignments in the event of a strike.
China based e-commerce titan Alibaba Group Holding Ltd said on Tuesday that they have agreed to buy a controlling stake in Southeast Asian online retailer Lazada to tap into the region's lucrative consumer market for about $1 billion. This will expand Alibaba's reach to the Southeast Asian market.
Under the deal worth approximately $1 billion which is Alibaba's biggest overseas investment so far, they will buy around $500 million worth of newly issued shares in Lazada, as well as acquire shares from some existing shareholders. These include Britain's biggest supermarket operator Tesco Plc, which said it would sell an 8.6 percent stake for $129 million, valuing Lazada at $1.5 billion. Rocket and Investment AB Kinnevik will also sell shares.
Alibaba President Michael Evans said the investment will support Alibaba's expansion plans in Southeast Asia.
Lazada Group was founded by Germany's Rocket Internet in 2012, their headquarters is in Singapore and they also operates in Malaysia, Indonesia, the Philippines, Thailand and Vietnam.
Alibaba and Lazada did not specify the size of the stake purchased but the sales imply a two-thirds holding.
The e-commerce market for business-to-consumer sales across all of Indonesia, the Philippines, Singapore, Malaysia, Vietnam and Thailand was just $10.5 billion in 2015, or 1.5 percent of retail volume, according to consultancy firm Frost & Sullivan. Just to compare, it accounts for 12% of retail in China, and 8% in the United States.
Thursday, March 31, 2016
Oil futures fell amid the rising U.S. crude stockpiles kept supplies at the highest level in more than eight decades. It renewed worries of global oversupply
Brent crude futures fell as much as 1.5% in New York after closing little changed Wednesday, 45 cents to $38.81 a barrel as of 0518 GMT. It ended up 12 cents in the previous session after touching a session peak of $40.61. U.S. crude futures dropped 53 cents to $37.79 a barrel.
Inventories expanded for a 7th week by 2.3 million barrels to 534.8 million barrels, according to a report from the Energy Information Administration. Imports and production dropped. Ecuador and Venezuela will support a cut to output at a meeting between major exporters in Doha next month, Ecuador’s Oil Minister Carlos Pareja said in a post on the ministry’s Twitter account.
But the increase was less than analysts' expectations of a 3.3 million barrel build after crude imports fell 636,000 barrels per day (bpd) to 7.4 million bpd.
Refinery crude runs rose by 414,000 bpd and refinery utilization rates rose 2 percentage points to 90.4 percent of total capacity, the highest seasonal rate since 2005.
Wednesday, March 23, 2016
U.S. Dollar were up to a one-week high against a basket of currencies on Thursday. The U.S. dollar index were able to hit 96.235, its highest since March 16. The U.S. currency was on the front foot after St. Louis Fed President James Bullard added his support to the possibility of more U.S. interest rate hikes this year.
U.S. Dollar was up 0.4% at 112.795 yen. The euro eased to $1.1171 EUR=, leaving it well off last week's top of $1.1342. Sterling GBP also slid to $1.4096 GBP= on concerns the attacks in Brussels would aid the campaign to leave the European Union in June's "Brexit" vote. The common currency has lost 0.8% so far this week.