Sterling worsen Housing Sector UK. Sterling continued softening in the London session after data emphasize the threat of recession housing sector which now haunt the UK economy. House price index (version Halifax) fell 0.2% for the month of January; according to predictions, but worse than the previous publications which rose 1.3%. GBP / USD is now trading 1.56442, 1.56645 away from the daily high level. The fall in house prices could imply reduced purchasing power of consumers considering a home is one of the main components of wealth. It certainly makes the market increasingly concerned about the threat of recession after the UK economy shrank in the last quarter back 2012.
Euro Continue Correction Ahead of Release Data
The European single currency, the euro ahead of the data continued to Corrected German Factory Orders at 18:00 pm. Currently, the euro was at 1.3570 level. The survey, conducted before the data was released mentions expectations for a contraction of 1.2% in the year to December period. While market participants began to focus on the ECB meeting due to be held tomorrow (07/02). Currently, the euro has depreciated by 0.11% at 1.3567 with the next support level at 1.3415 (low of January 29), 1.3377 (MA21d) and 1.3349 (level Low 25 Jan). As for the resistance level at 1.3620, 1.3660 (level height 4 Feb) and 1.3664 (Upper Bollinger).
Rally Could Not Hang Seng Cover Gap
Until well into the second session, the Hang Seng Index (HSI) rallied 0.8% was observed in the range of 23,331.45, due to the flood of cheap stock enthusiasts (bargain hunters) that goes to Hong Kong's stock after yesterday's sharp decline in the last 3 months. But technically that signal emerging uptrend pattern Hang Seng has become dangerous. Because these days the index has failed to close the gap between 23.406 s / d 23.685 which would likely diminish the increase trend (uptrend).
And due to a sharp decline in the Hang Seng experienced session yesterday, today some technical indicators look bullish attempt to maneuver. However, Hang Seng rally will likely be hampered by the Moving Average indicator is still bearish, and the MACD is still in negative territory while in town. By relying on a bullish Stochastic and refers to the theory of Fibonacci projections, the Hang Seng rallied still appeared to be stronger resistance to 23 385 (23.6% retrace) and 23 450 and 23 500 (38.2% retrace). While the correction will take the index to some point and then support such as 23 270 23 200 or even up to go back to the support level of 23,080, the lowest level session on Tuesday.
Portugal & Ireland Ask for Help Extras from the ECB ?
Ireland and Portugal were targeted additional funding from the European Central Bank (ECB) to be able to re-access the bond market in full. Two German media reports said today, after citing an unnamed source. Portugal asked the ECB to enable the bond-buying program, known as the Monetary Outright Transactions (OMT). The government wants to rebuild investor confidence in the economy and the Iberian country's ability to pay. Unfortunately, the daily Handelsblatt writes 23 members of the main board of the ECB has rejected the purpose of using OMT fund to help troubled nations who want to return to the bond market.
Late last month, Secretary of the Ministry of Finance of Portugal, Maria Luis Albuquerque said the government has not received a copy of the provisions of the OMT program. This statement came after Portugal's successful bond release a 5-year tenor in his debut in the debt market. Since nearly two years ago, the state can not enter into the bond market in accordance with the European bailout. Portugal still want to learn the provisions in the articles of OMT before deciding on further steps.
While media Die Welt also said Portugal is planning to ask for an extension of the loan payment due ESM permanent post as much as 10 to 15 years. This step was taken so that the government could settle the payment with a more 'smoothly' while recovering domestic economy. If the news is true, then Portugal still have to wait for approval of the German parliament. This process is believed to be held tough considering the past two years, lawmakers in Europe's biggest economies have tolerated the government's role in the European recovery effort. Moreover, Germany soon hold elections in September. Parliament and government officials are unlikely to take bold steps related to the use of public tax funds.
At the same time, Ireland is seeking bleaching was also reported partial dependents of the total debt reached 31 billion euros ($ 42.2 billion). Funds obtained by the government bailout of Dublin ECB has used to help banks' capital adequacy amid the financial crisis. Banks a few years ago suffered a liquidity crisis have got a soft loan distributed by the central bank of Ireland. The ECB has stated that the policy of debt relief is not a board of governors and a domain is tantamount to violation of the constitution. Therefore, Ireland's efforts to meet the tough certainly true if proposed by the government in the next few weeks.
Daily Die Welt also reported that the Irish coalition government will meet this week to discuss the debt easing discourse. Both media Handelsblatt and Die Welt wrote Ireland plans to convert short-term debt into government bonds, whose interest more in fact lower. Pressure will be put forward as an alternative to the policy of the payment Ireland promissory notes will mature in March. Prime Minister Enda Kenny trying to convince the parliament that the coalition government will not collapse if it fails to ask for easing the payment.
Case Facebook IPO, Nasdaq Continues Strive Peaceful Way
Nasdaq OMX Group is conducting preliminary talks with the United States Securities and Exchange Commission to seek peaceful means in the case of Facebook IPO. As is known, the Facebook IPO is not going well because of technical problems that are under the responsibility of the Nasdaq. Delay order on May 18, 2012 and made a lot of companies and retail investors lose big. Negotiations between the Nasdaq and the Securities Exchange Commission is expected to include a fine of $ 5 million. The amount is 10 times smaller than the amount of damages claimed by all companies and individual owners of capital. If the total, transaction reportedly accumulated losses reached $ 500 million according to the data of each broker.
"We are talking with the SEC to find a way out of the problems that occurred last May 18," said a spokeswoman for Nasdaq, Joe Christinat. In September 2012, the Nasdaq had offered compensation worth $ 62 million for the parties who feel aggrieved. But the proposal was rejected by several major companies, including UBS and Citigroup. It is not yet known how the estimated amount to be paid by the Nasdaq as a whole in addition to the SEC fines totaling $ 5 million.
Mr. Retired from Goldman BRIC This Year
Goldman Sachs will lose one of the important figures in the coming months. Is Jim O'Neill, who prepares to step down this year after serving the largest U.S. financial companies for 20 years. O'Neill currently serves as President of Goldman Sachs asset management division. He is remembered as the first to identify the emergence of new economies and call it by the acronym BRIC (Brazil, Russia, India and China). His reputation was further after market players see the projections on the world economy proved right a few times.
In 2001 ago, he predicted the economic forces were going to control the world economy in the decades ahead. O'Neill China as a dark horse candidate that is able to shake the hegemony of the U.S. and Japan. Until now he is still looking bullish Chinese state, as expressed in an interview with Fortune last month. O'Neill believes that the Chinese stock market will rebound this year due to the effects of national economic acceleration. "I see an alarming from India and Brazil, but it is not the case with China," he said at the time.
O'Neill saw the potential for new problems in India and Brazil, particularly in the political and monetary. "People assume India (economy) they could grow 8% but did not do anything. They are reluctant to change policies that could actually boost productivity-oriented investment flows," he added. As for Brazil, Jim O'Neill saw its currency is overvalued and non-commodity lines do not have a good competitiveness. But O'Neill praised the courage the government to suppress the strengthening of its currency this year, although the risk is also very large.
Goldman's Jim O'Neill's departure was confirmed in a letter signed by Lloyd Blankfein and Gary Cohn. There, the company praised the role for 20 years of service O'Neill at Goldman. Even so, the memo did not include Mr retirement date. BRIC and the reasons behind the resignation. Goldman Sachs shares closed up $ 150.45 or equal to 2% in Tuesday trading session (05/02).
Euro Continue Correction Ahead of Release Data
The European single currency, the euro ahead of the data continued to Corrected German Factory Orders at 18:00 pm. Currently, the euro was at 1.3570 level. The survey, conducted before the data was released mentions expectations for a contraction of 1.2% in the year to December period. While market participants began to focus on the ECB meeting due to be held tomorrow (07/02). Currently, the euro has depreciated by 0.11% at 1.3567 with the next support level at 1.3415 (low of January 29), 1.3377 (MA21d) and 1.3349 (level Low 25 Jan). As for the resistance level at 1.3620, 1.3660 (level height 4 Feb) and 1.3664 (Upper Bollinger).
Rally Could Not Hang Seng Cover Gap
Until well into the second session, the Hang Seng Index (HSI) rallied 0.8% was observed in the range of 23,331.45, due to the flood of cheap stock enthusiasts (bargain hunters) that goes to Hong Kong's stock after yesterday's sharp decline in the last 3 months. But technically that signal emerging uptrend pattern Hang Seng has become dangerous. Because these days the index has failed to close the gap between 23.406 s / d 23.685 which would likely diminish the increase trend (uptrend).
And due to a sharp decline in the Hang Seng experienced session yesterday, today some technical indicators look bullish attempt to maneuver. However, Hang Seng rally will likely be hampered by the Moving Average indicator is still bearish, and the MACD is still in negative territory while in town. By relying on a bullish Stochastic and refers to the theory of Fibonacci projections, the Hang Seng rallied still appeared to be stronger resistance to 23 385 (23.6% retrace) and 23 450 and 23 500 (38.2% retrace). While the correction will take the index to some point and then support such as 23 270 23 200 or even up to go back to the support level of 23,080, the lowest level session on Tuesday.
Portugal & Ireland Ask for Help Extras from the ECB ?
Ireland and Portugal were targeted additional funding from the European Central Bank (ECB) to be able to re-access the bond market in full. Two German media reports said today, after citing an unnamed source. Portugal asked the ECB to enable the bond-buying program, known as the Monetary Outright Transactions (OMT). The government wants to rebuild investor confidence in the economy and the Iberian country's ability to pay. Unfortunately, the daily Handelsblatt writes 23 members of the main board of the ECB has rejected the purpose of using OMT fund to help troubled nations who want to return to the bond market.
Late last month, Secretary of the Ministry of Finance of Portugal, Maria Luis Albuquerque said the government has not received a copy of the provisions of the OMT program. This statement came after Portugal's successful bond release a 5-year tenor in his debut in the debt market. Since nearly two years ago, the state can not enter into the bond market in accordance with the European bailout. Portugal still want to learn the provisions in the articles of OMT before deciding on further steps.
While media Die Welt also said Portugal is planning to ask for an extension of the loan payment due ESM permanent post as much as 10 to 15 years. This step was taken so that the government could settle the payment with a more 'smoothly' while recovering domestic economy. If the news is true, then Portugal still have to wait for approval of the German parliament. This process is believed to be held tough considering the past two years, lawmakers in Europe's biggest economies have tolerated the government's role in the European recovery effort. Moreover, Germany soon hold elections in September. Parliament and government officials are unlikely to take bold steps related to the use of public tax funds.
At the same time, Ireland is seeking bleaching was also reported partial dependents of the total debt reached 31 billion euros ($ 42.2 billion). Funds obtained by the government bailout of Dublin ECB has used to help banks' capital adequacy amid the financial crisis. Banks a few years ago suffered a liquidity crisis have got a soft loan distributed by the central bank of Ireland. The ECB has stated that the policy of debt relief is not a board of governors and a domain is tantamount to violation of the constitution. Therefore, Ireland's efforts to meet the tough certainly true if proposed by the government in the next few weeks.
Daily Die Welt also reported that the Irish coalition government will meet this week to discuss the debt easing discourse. Both media Handelsblatt and Die Welt wrote Ireland plans to convert short-term debt into government bonds, whose interest more in fact lower. Pressure will be put forward as an alternative to the policy of the payment Ireland promissory notes will mature in March. Prime Minister Enda Kenny trying to convince the parliament that the coalition government will not collapse if it fails to ask for easing the payment.
Case Facebook IPO, Nasdaq Continues Strive Peaceful Way
Nasdaq OMX Group is conducting preliminary talks with the United States Securities and Exchange Commission to seek peaceful means in the case of Facebook IPO. As is known, the Facebook IPO is not going well because of technical problems that are under the responsibility of the Nasdaq. Delay order on May 18, 2012 and made a lot of companies and retail investors lose big. Negotiations between the Nasdaq and the Securities Exchange Commission is expected to include a fine of $ 5 million. The amount is 10 times smaller than the amount of damages claimed by all companies and individual owners of capital. If the total, transaction reportedly accumulated losses reached $ 500 million according to the data of each broker.
"We are talking with the SEC to find a way out of the problems that occurred last May 18," said a spokeswoman for Nasdaq, Joe Christinat. In September 2012, the Nasdaq had offered compensation worth $ 62 million for the parties who feel aggrieved. But the proposal was rejected by several major companies, including UBS and Citigroup. It is not yet known how the estimated amount to be paid by the Nasdaq as a whole in addition to the SEC fines totaling $ 5 million.
Mr. Retired from Goldman BRIC This Year
Goldman Sachs will lose one of the important figures in the coming months. Is Jim O'Neill, who prepares to step down this year after serving the largest U.S. financial companies for 20 years. O'Neill currently serves as President of Goldman Sachs asset management division. He is remembered as the first to identify the emergence of new economies and call it by the acronym BRIC (Brazil, Russia, India and China). His reputation was further after market players see the projections on the world economy proved right a few times.
In 2001 ago, he predicted the economic forces were going to control the world economy in the decades ahead. O'Neill China as a dark horse candidate that is able to shake the hegemony of the U.S. and Japan. Until now he is still looking bullish Chinese state, as expressed in an interview with Fortune last month. O'Neill believes that the Chinese stock market will rebound this year due to the effects of national economic acceleration. "I see an alarming from India and Brazil, but it is not the case with China," he said at the time.
O'Neill saw the potential for new problems in India and Brazil, particularly in the political and monetary. "People assume India (economy) they could grow 8% but did not do anything. They are reluctant to change policies that could actually boost productivity-oriented investment flows," he added. As for Brazil, Jim O'Neill saw its currency is overvalued and non-commodity lines do not have a good competitiveness. But O'Neill praised the courage the government to suppress the strengthening of its currency this year, although the risk is also very large.
Goldman's Jim O'Neill's departure was confirmed in a letter signed by Lloyd Blankfein and Gary Cohn. There, the company praised the role for 20 years of service O'Neill at Goldman. Even so, the memo did not include Mr retirement date. BRIC and the reasons behind the resignation. Goldman Sachs shares closed up $ 150.45 or equal to 2% in Tuesday trading session (05/02).
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