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Bullfax Market Review

Fri, 13 Jun 2014 08:32:21 +0000

(image) Today all major European indexes trade lower, as the biggest loser is London’s FTSE, which lost 22.05 or 0.33% to 6,821.06, compared to its last close of 6,843.11. The index gives a broad view on UK’s biggest companies, as is a capitalization-weighted index combining 100 of Britain’s largest in capitalization companies. The reason for its weaker performance is losses posted by members. In trade so far EasyJet shares have lost 3.06% to 533.12 together with Land Securities Group PLC that dropped 3.07% and Kingfisher PLC with 1.54% loss. Declines come along with ECB decision to decrease overnight interest rates even further to negative values. 
Milder expectations were supported after the World Bank revised down its profit forecast for the current year to 2.8% from 3.2%. New York’s S&P 500 was also affected and closed 0.71% lower on Thursday 06/12/2014 to 1,930.11. 
Meanwhile Asian markets showed mixed results with as Seoul’s KOSPI index dropped and closed lower by 1.03% to 1,990.85, yet Nikkei compensated by gaining 0.83% before closing on Thursday. Asians stocks are expected to continue their decline today amid continuing worries over the civil war in Iraq and rising oil prices. Investor’s enthusiasm was also negatively influenced by the weaker US jobs and sales data. 
For more market data visit our interactive Market Map.

Bullfax Overview on Markets

Thu, 05 Jun 2014 07:38:34 +0000

Major stock markets in North America closed in the green yesterday 06/04/2014 with the exception of Mexico City’s main index IPC, which lost 0.41% or 172.79 to 41,953.30. Meanwhile on the New York bourse index S&P 500 gained 0.19% to 1,927.88 amid strong performance by stock and bonds, which have confirmed investors’ expectations of improving economy and low inflation. In the past few weeks S&P 500 has showed better than expected results.
Toronto’s SPTSX index also showed good results by increasing 0.42% before closing to 14,796.79 and getting closer to its 52-week high of 14,805.96. The index is measuring the market activity of stocks listed on the TSX and among its biggest gainers recently are Navagold Resources with 6.9%, Martinrea International with 5.43% gains and Just Energy Group with 4.77% increase. 
Main indexes in Europe closed mainly with losses with the exception of the Frankfurt DAX index, which posted minor gains of 0.07% to 9,926.67. The index is composed of 30 blue chip companies traded in Frankfurt. Investors and businesses in Europe are awaiting the decision by ECB to impose even lower and almost negative interest rates to banks on overnight loans, in terms to stimulate banks to start lending. The step is taken amid increasing fears over possible deflation similar to the Japanese, which can already be observed in some countries members of the EU. 
At Wednesday 06/04/2014 the Tokyo Nikkei was the only one that posted gains on closing, while others ended the day lower. However the Japanese economy and more specifically industries that need low-paid labour are still facing challenges, as government’s financial policy is still unable to fully remove the deflation that has been impeding the economy in the last few decades. 
For more market data visit our interactive Market Map.

Bullfax Market Overview

Wed, 21 May 2014 08:01:56 +0000

Stock markets in North America closed with mixed results on Tuesday, May 20th as Toronto’s composite index GSPTSE closed higher by 0.7% or 10.13 to 14,525.19, while New York traded S&P500 lost 0.65% before closing. S&P500 lost $12.25 to $1,872.83 due to the increasing uncertainty around Fed’s monetary policies as well as disappointing earnings. In Mexico the main benchmark index -the IPC also closed the day in the negative by losing 0.08% or MXN 34.95 to MXN 41,805.10. 
(image) Meanwhile in Europe all major benchmarks closed lower on May 20th. The FTSEMIB.MI, Milan’s main index lost 0.58% and closed at 20,379.85. Germany’s DAX, which includes companies like Adidas and BMW and trades at the Frankfurt stock exchange dropped 0.21% and closed at 9,639.08. London’s FTSE and Paris’ EURNXT100 both closed lower by 0.17% and 0.36% respectively. 
Asia’s main benchmark indexes also closed below their opening price. Seoul’s KOSPI closed by 0.15% lower to KRW 2,008.33. Asian trades had mixed results ahead of the expected announcement of the US job data. Nikkei also declined by 0.24% to 14,042.17 amid stronger yen and an announcement by Bank of Japan’s Governor Haruhiko Kuroda that additional easing is not necessary at the moment.  The Hang Seng Index traded in Hong Kong lost only 0.03% and closed at 22,834.68. Singapore’s STI was also badly affected by investors’ concerns on Fed and BOJ policies and closed at 3,265.47 after dropping by 0.2%. 
For more information on markets check out our interactive Market Map

Alstom, Pfizer, CITIC and Germany in Our Daily Round-Up for 05/15/2014

Thu, 15 May 2014 10:54:45 +0000

French government to block Alstom’s overtake by GE. Pfizer’s intention to buy AstraZeneca rises political disapproval. CITIC Pacific to invest $5.5 billion in its parent company. German economy posted 0.8% growth in Q1. 
(image) A decree issued by the French government is intended to block all acquisitions by foreign companies of French strategic industries. This regulation was first implemented in 2005, but now its jurisdictions have been extended following the news that General Electric could take over Alstom energy division for $16.9 billion. The new changes on the law give to the French government the possibility to regulate and block acquisitions in the water, transport, energy, telecoms and health industries. "With this reform, France will have a clear and efficient legal framework comparable to that in a number of other open economies within and outside Europe," commented French Economy Minister Arnaud Montebourg. 
The political escalation over AstraZeneca acquisition by Pfizer continues to increase. Austin Mitchell, a UK politician called Pfizer in his Tweeter post a “rapist”. "(Prime Minister David) Cameron dare not stop Pfizer because he dare not offend the U.S. in any way. Roll up rapists," wrote Mitchell. A possible merger of the two pharmaceuticals giants would affect research and development processes, drug making and patients as well. In the last couple of days Pfizer CEO Ian Read spoke couple of times with UK officials about the future deal and the possible future development of UK-based AstraZeneca. 
China International Trust and Investment Corporation Pacific (CITIC) announced that it will provide $5.1 billion aid for the takeover of assets for $36 billion from its parent company, which is currently managed by the Chinese government. The acquisition of this large volume of shares is the next step in the reformation of the Chinese government-held companies. The $5.1 billion help will be funded by local and foreign investors. Largest share in the aid will give China's National Social Security Fund with $2.2 billion of stocks. AIA Group, a Chinese insurer, lines up second with $300 million followed by Qatar Holding with $200 million and Singapore's Temasek Holdings with $100 million. Japanese financial institutions Tokio Marine Holdings and Mizuho Bank will also participate by investing $100 million each. 
A report by the German Federal Statistical Office released yesterday shows that in the three months since the beginning of the year EU’s largest economy – Germany has posted a 0.8% increase. The result was supported by milder winter months and well-performing labour market. According to economist Carsten Brzeski of ING the up going trend is likely to continue amid increasing building sector and labour market. Yet the uncertainty in other parts of Europe, including Ukraine and the signs for the slowing Chinese economy will most probably play a negative role. 

Bank of England, Sony, Jaguar Land Rover and Alibaba in Our News for 05/14/2014

Wed, 14 May 2014 09:49:57 +0000

Bank of England is expected to increase its interest rates. Sony Music Entertainment bought share in Jaguar Land Rover starts new massive ad campaign in China. Alibaba might face the need of large investments in logistics. 
Today the Bank of England is expected to announce its decision that most probably interest rates will be increased before the general election in 2015. Yesterday the Organization for Economic Co-operation and Development commented that the UK is entering into a period of "above-trend" expansion and the Central bank is expected to revise up its growth target for this and the next years from its current forecasts of 3.4% and 2.7% respectively. Economists expect that Britain will prove to have the fastest economic growth rate in 2014. "With the data so strong, we think there's a real chance that a rate hike could even come by the end of 2014," commented Chief UK economist at Berenberg, Rob Wood. 
Yesterday Sony Music Entertainment purchased a stake of 26% in Indian e-commerce platform The platform is held by Infibeam Digital Entertainment Pvt. The president of Sony Music Entertainment for India and Middle East, Shridhar Subramaniam commented that "The digital ecosystem keeps evolving. There has been a strong need for an independent technology company that music companies can partner with to build innovative services and offerings. Indent empowers these labels with a scalable and commerce-ready platform." The Infibeam platform is the first Indian project in which the company is investing. 
Earlier this week high-end car manufacturer Jaguar Land Rover China started an advertising campaign aimed at outlining company’s vehicles off-road abilities by traveling around the country and visiting more than 20 cities and towns. The trip will last 70 days and is under the motto "Never Stop Discovering | Unexplored Experiences". The British SUV and luxurious car maker is trying to attract customers attention to its brands in China and to increase its market share. Since 2011 Jaguar Land Rover China offers to its customers a full range of its SUV models nameplates. 
With the upcoming initial public offering of Alibaba and investors highs expectations on its success, it comes the question are there a well-developed infrastructure and logistics for the fast growing and highly promising e-commerce sector in China. According to a research by KMPG by 2020 the online retail sector in China will reach a volume larger than those of Britain, Japan, France, Germany and the United States combined. In terms to be able to meet the increasing demand Alibaba might need to invest near $2.5 trillion in land and warehouses in the next fifteen years. 

IBM, BNP Paribas, Samsung and the Confederation of British Industry in Our News for 05/12/2014

Mon, 12 May 2014 08:47:03 +0000

IBM to focus on cloud technologies. BNP Paribas and Credit Suisse to face legal consequences in the US. Samsung to launch new phone for the Indian and Russian markets. CBI forecasts that interest rates would rise. 
IBM’s CEO Virginia Rometty said for the New York Times that the company will welcome new technologies and innovations that would boost its performance and put an end to the period of slow growth and competitiveness. “We are transforming this company for the next decade,” added Rometty. Changes will include a new focus on cloud based computing as well as new fresh avenues. “That is not a one-year job, not when you’re a hundred-billion-dollar company.” In the recent years IBM has cut some of its less profitable divisions in terms to be able to remain afloat and to keep its competitiveness in the fast changing IT sector. 
Following an investigations started by US regulators over allegations against French bank BNP Paribas for violating US sanctions against Iran and other countries and allegations against Credit Suisse Group for assisting American citizens to evade the US tax system, the two banks have requested from US regulators to allow their local branches to plead guilty instead of the mother companies. Yet according to information from the New York Times officials are likely to reject bank’s demands. In a video showed last week Attorney General Eric Holder said that the US Department of Justice will continue the investigation and results can be expected soon, as no bank is “too big to jail”. 
The Wall Street Journal reported that tech giant Samsung plans to introduce a new smartphone designed especially for the Indian and Russian market. The device will work on Samsung’s own OS Tizen. Samsung intends to show its new device at a special event in Moscow in the next few weeks as this is the next step of the South Korean company to stand against its main competitors Apple and Google. 
The Confederation of British Industry (CBI) forecasts that in the first quarter of 2015 the interest rates in the UK will increase to 0.75%. The association is also expecting a 3% increase for 2014, compared to initial forecasts of 2.7%. Yet according to the Confederation political scandals and uncertainty are the main perils for a stable economic recovery. "Businesses recognise the realities of election time but want all parties to ensure their policies make a positive difference," commented John Cridland, director-general of CBI.