Friday, June 24, 2016

BREXIT EFFECT: Global Markets Shock and Awed

Britain, Brexit, UK, United Kingdom, UKIP

Britain has voted to leave the European Union which is a historic decision that will have a huge effects in the world. The value of the British pound sunk as financial markets absorbed the news.

Financial institution took a beating as the prospect of a sinking pound eating into the profits of British companies as well as broader worries about the financial sector have battered the shares of the British banks HSBC and Standard Chartered.

In Hong Kong, the Hang Seng index are down by 5% pulled down by stocks in banks, which had fallen more than 6%.

But HSBC’s stock slipped almost 12%, and Standard Chartered’s plummeted more than 13%. Prudential also saw its shares sink more than 11%.

Shares in Indian and Chinese banks have dropped, too, and Japanese bank shares have experienced a rout as the yen has surged.

Morgan Stanley has already said it will consider moving its European headquarters to Dublin or Frankfurt in the event of a vote to leave. Markets are a factor in the cost of potentially streamlining operations in Britain and shifting operations to other parts of Europe.

The United Kingdom voted to leave the European Union, a decision that sent global markets into a tailspin early Friday.

The margin of victory was 52% to 48%.

It is the first departure from the alliance since the EU was formed 43 years ago. It could prompt other member nations to follow the U.K.'s lead and reverse a decades-long drive for European unity.

Monday, June 20, 2016

United States stocks rose sharply Amid Brexit Fears Ease money&index=aps&camp=1789&creative=9325&linkCode=xm2&linkId=d3d3d2ef4cadc58c8ecdae00ad2e2070

With the positive news that the polls are leaning towards Britain remaining in the European Union, the United States stocks sharply rose.

Asian stocks also traded higher and indexes in Europe were up as the latest opinion polls and betting markets suggested it was more likely that Britain would stay in the E.U. Britons vote in a referendum on the matter on Thursday.

The British pound rose sharply, and investors dumped ultrasafe assets like American government bonds, gold and utility stocks, sending those prices lower. Machinery and consumer companies jumped, and energy companies rose with the price of oil.

- Standard & Poor’s 500-stock index up by 12.03 points, 0.6% to 2,083.25.
- The Nasdaq composite up by 36.88 points 0.8% to 4,837.21.
- The Dow Jones industrial average up by 129.71 points, 0.7% to 17,804.87.
- Boeing gained $2.93, or 2.3% to $132.75
- Honeywell up by $1.14, or 1% to $117.06.
- General Electric up by 23 cents to $30.83.
- Amazon up by $7.62, or 1.1% to $714.01,
- Priceline up by $32.72, or 2.5% to $1,341.96
- Nike rose 65 cents, or 1.2% to $54.36.
- Benchmark United States crude oil rose $1.39, or 2.9% to $49.37 a barrel
- Brent crude gained $1.48, 3% to $50.65 a barrel in London.
- Chevron up by $1.04, 1% to $102.61.
- Marathon Oil up by $1.32, 10% to $14.48, company agreed to pay $888 million for PayRock Energy.

Bond prices dropped as investors moved money out of ultrasafe assets. The yield on the 10-year Treasury note rose to 1.68 percent from 1.61 percent late Friday.

The FTSE 100 in Britain leapt 3 percent and the CAC 40 in France rose 3.5 percent. The German DAX was up 3.4 percent. Japan’s benchmark Nikkei 225 index surged 2.3 percent. The South Korean Kospi climbed 1.4 percent and in Hong Kong the Hang Seng added 1.7 percent.

In other energy trading, wholesale gasoline added 8 cents, to $1.58 a gallon. Heating oil edged up 5 cents, to $1.53 a gallon. Natural gas rose 12 cents, to $2.75 per 1,000 cubic feet.

Gold slipped $2.50, to $1,290 an ounce. Silver rose 10 cents, to $17.51 an ounce. Copper added 4 cents, to $2.09 a pound.

The pound rose to $1.4684 from $1.4361. The dollar fell to 103.86 yen from 104.21 yen and the euro rose to $1.1305 from $1.1277.

Thursday, June 9, 2016

U.S. Crude Reserves Fall, Oil Hits 2016 Highs

Oil has recorded near 10-Month high as U.S. crude stockpiles decline, U.S. oil inventories fell 3.23 million barrels last week. It was also affected by disruptions in producing countries like Canada and Nigeria.

Futures were stable in New York, it just recorded an earlier increase of 0.9%, after settling on Wednesday at the highest since July 15. Crude stockpiles dropped by 3.23 million barrels last week to the lowest in two months, the U.S. Energy Information Administration said on Wednesday. A new wildfire prompted Canadian oil producers Cenovus Energy Inc. and Canadian Natural Resources Ltd. to shut production.

Crude has surged more than 95% from a 12-year low in February amid unexpected disruptions and a steady slide in U.S. output, which is under pressure from the Organization of Petroleum Exporting Countries’ policy of pumping without limits. Militant attacks have hobbled production in OPEC member Nigeria.

West Texas Intermediate for July delivery traded 12 cents lower at $51.11 a barrel on the New York Mercantile Exchange as of 9:23 a.m. London time, having risen as much 44 cents to $51.67. Total volume traded was about 20 percent below the 100-day average. The contract rose 87 cents, or 1.7 percent, to close at $51.23 on Wednesday, the highest since July 15.

International Brent crude oil futures hit a high of $52.86 a barrel, and were up 23 cents at $52.74 a barrel at 0700 GMT. U.S. crude hit a fresh high of $51.67 and was up 33 cents higher at $51.56 a barrel.

Friday, May 27, 2016

Hackers that Targeted Bangladesh have attacked other Asian banks

swift hackers, bank hackers

Hackers that are responsible for the $81 million heist from Bangladesh's central bank have been linked to other cyber attacks on a bank in the Philippines, in addition to the 2014 hack on Sony Pictures, according to cybersecurity company Symantec Corp.

A senior executive at Mandiant, the cybersecurity company investigating the Bank Bangladesh heist said that the hackers has also broken into other banks in Southeast Asia.

On a blog post by Symantec, they did not name which Philippine bank or say that if money has been stolen. However, they said that the attacks could be traced back to October last year. They also did not identify the hackers.

The Philippines central bank's deputy governor, Nestor Espenilla, told Reuters that no bank in the country had lost money to hackers, although he did not rule out the possibility of cyber attacks.

Marshall Heilman, vice president for Mandiant, a part of U.S.-based FireEye (FEYE.O), said it was not known whether any money was lost in the other attacks he described or whether the hackers had been successfully blocked.

"There is a group operating in Southeast Asia that definitely understands the bank industry and is at more than one location," he said.

Heilman declined to identify the country or countries, or the institutions attacked. He said it was the same group as the one involved in the Bank Bangladesh theft and that the attacks were recent, but declined to be more specific.

Central banks in Southeast Asia (Singapore, Indonesia, Brunei, Myanmar, Laos, Cambodia, Vietnam, Thailand and East Timor) refused to make any comment or denied knowledge of any other breaches.

There have been at least four known cyber attacks against a bank involving fraudulent messages on the SWIFT payments network, one dating back to 2013. SWIFT, the Society for Worldwide Interbank Financial Telecommunication, urged banks this week to bolster their security, saying it was aware of multiple attacks.

Banks around the world use secure SWIFT messages for issuing payment instructions to each other.

Thursday, May 19, 2016

US Dollar is Up, Asian stocks and gold are Down

US Dollar, feds, Federal Reserves, money, finance, business

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 shares ends lower ahead of closely watched US jobs report

asian stock, finance, economy

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 Proposes New Stock Class to Solidify Mark Zuckerberg’s Control

Facebook, business, finance, economy

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.