Financing FAQ

Posted on Saturday, 16th July 2011 by Emily Smith

Equities markets in Europe were mostly lower Friday on concern over stress tests of banks there by the European Union, and on new data from the United States showing that consumer confidence there is down this month in preliminary readings and that industrial production in the US grew less than expected.

The FTSE 100 was down 0.06 percent to 5,843.66 in London, while the FTSE 250 dropped 0.17 percent to 11,746.8 as many sectors were mixed on the session, including insurers, the chemicals sector, homebuilders, the real estate sector, retailers, the travel and leisure sector and the food and beverage sector.

Most banks were lower in London on concerns about the banks stress tests, but Standard Chartered (LSE: STAN), which was up 0.12 percent, while the media sector, miners and the telecommunications sector were all also mostly lower, but the utilities and energy sectors were mostly higher, although there were seven decliners among energy companies.

Fashion house Burberry Group (LSE: BRBY) added 4.16 percent to lead gains on the 100 after Citigroup issued an improved earnings outlook and raised the companys target share price, while business and finance publisher Euromoney Institutional Investor (LSE: ERM) was up 10.08 percent to lead gains on the 250 and in the media sector.

The worst performance on the 100 came from satellite communications group Inmarsat (LSE: ISAT), which was down 3.25 percent, while Home Retail Group (LSE: HOME) led declines on the 250 as it ddropped 6.26 percent.

In the mining sector, BHP Billiton (LSE: BLT) dropped 1.93 percent after it said it will buy US-based Petrohawk Energy (NYSE: HK) for around $12 billion in cash.

The FTSE Eurofirst 300 was down 0.09 percent to 1,088.37 while the CAC-40 was 0.66 percent lower to 3,726.59 and the IBEX dropped 1.19 percent to 9,484.2 and saw just five gainers, but the Dax managed to add 0.07 percent to 7,220.12.

Markets in the Asia-Pacific region were mixed Friday, with some down on a warning from Standard Poors that it could cut its credit rating on the United States, and after the US Federal Reserve said it will wait to see if more stimulus meansures are necessary.

In Tokyo, the Nikkei 225 added 0.39 percent to 9,974.47 while the Topix index was up 0.29 percent to 859.36, but the Mothers market dropped 0.69 percent to 480.99 as oil companies and commodities traders declined after crude oil and base metals prices were lower.

Oil producer Inpex (TYO: 1605) was down 1.5 percent, while trader Mitsubishi Corp (TYO: 8058) was 0.5 percent lower and Mitsui Co (TYO: 8031) dropped 0.6 percent.

Appliance retailers were higher in Tokyo on media reports that the government might again pay rebates for the purchase of appliances that save energy in an effort to help avoid expected power shortages due to closure of power generation facilities after the March earthquake, with Ks Holdings Corp (TYO: 8282) up 1.8 percent, while Yamada Denki Co (TYO: 9831) added 2.4 percent and Best Denki (TYO: 8175) gained 7 percent.

Other gainers in the region included the Shanghai Composite, which was up 0.35 percent to 2,820.17, while the Kospi added 0.71 percent to 2,145.20 in South Korea and Taiwans Taiex gained 1.1 percent to 8,574.91, but the Straits Timex Index was down 0.14 percent to 3,084.24 in Singapore, Indias Sensex fell 0.3 percent to 18,561.9, the Hang Seng was also 0.3 percent lower to 21,875.4 and Australias makets declined as the SP/ASX200 was down 0.38 percent to 4,473.5 and the Sydney Ordinaries dropped 0.41 percent to 4,542.7.

New York equities markets were higher in midday trade, with the Dow Jones Industrial Average up 0.02 percent to 12,439 while the SP 500 had gained 0.2 percent to 1,311.48 and the Nasdaq Composite was 0.66 percent higher to 2,780.77.

Crude oil and metals prices were higher, with crude oil up more than $1 per barrel in New York and London, while gold and silver were up slightly in New York trade.

Tags: Banks, Banks Decline
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Posted on Saturday, 16th July 2011 by Emily Smith

Respected think tank, Ernst Young ITEM Club, has lowered its growth forecast for the UK economy after warning that the UK is at a critical juncture.

The ITEM Club now believes the UK economy will expand by 1.4% this year, down from an earlier estimate of 1.8%.

Furthermore, it is predicting growth of 2.2% for the 2012 year, slightly lower than a previous forecast of 2.3%.

According to the think tank, the ongoing debt crisis in the euro zone could create further uncertainty among businesses in the UK, while global financial uncertainty is holding back business investment.

Peter Spencer of the ITEM Club comments: The risks to the world economy and the Eurozone are plain to see, starting with the Greek default, threatening a domino effect on Portugal and Ireland, followed perhaps by Spain and Italy.

In related news, last week, the Chartered Institute of Personnel and Development (CIPD) revised its growth forecasts to 1.4% for the 2011 year, down from its previous estimate of 1.6%.

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Tags: Forecast, Growth Forecast, Think Tank
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Posted on Saturday, 16th July 2011 by Emily Smith

Exchange traded funds that invest in precious metals and mining stocks were among Monday’s biggest ETF winners as gold futures rose to a fresh record north of $1,600 an ounce, while silver prices climbed back above $40 an ounce on global debt concerns.

ETFS Physical Swiss Gold Shares rose nearly 1% along with the yellow metal. Also Monday, ETFS Physical Silver Shares added nearly 3%, while in mining stocks Global X Silver Miners climbed 2.4%.

Gold also hit new records when priced in euros and British pounds, said Daniel Wills and Nicholas Brooks in a weekly update Monday from ETF Securities.

Officials in the U.S. and European Union “continue to struggle to find solutions to their respective sovereign debt problems, driving investors into perceived safe havens,” they wrote.

EU leaders are scheduled to meet this week to sort out a second bailout for Greece as they try to contain Europe’s debt crisis.

“Meanwhile, Standard & Poor’s became the second rating company to put a warning on the U.S.’s top credit rating last week as Republicans and Democrats struggle to find consensus on how to pare the U..S government budget deficit as the Aug. 2 deadline to

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Tags: Precious Metals, Silver
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Posted on Friday, 15th July 2011 by Emily Smith

North Korea relies on charity to feed its starving people. But the country’s elites like their luxuries — imported wine, fine china, dancing shoes.

To buy those things, they need foreign currency. (North Korean currency is worthless outside of North Korea.) To get foreign currency, they need to sell things to the outside world. But North Korea’s industrial base is a disaster, and the country doesn’t grow enough food to feed itself.

On today’s Planet Money, we look at the ways North Korea’s leaders have managed to keep foreign currency flowing into the country. Their strategies include manufacturing drugs, counterfeiting U.S. dollars, and selling gigantic statues to foreign leaders.

Tags: North, North Koreas
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Posted on Friday, 15th July 2011 by Emily Smith

Exchange traded funds tracking the S&P 500 are down more than 2% this week as the stock ETFs try to hold the 50-day moving average.

“The S&P 500 slid beneath its 50-day exponential moving average yesterday and also retraced 50% of the rally off the June lows. The sideways stagger of recent months continues,” wrote Tarquin Coe at Investors Intelligence in a newsletter Friday. “A visit back down to the June lows would be highly probable should major indexes end today in the red.”

SPDR S&P 500 ETF was struggling to stay in the green late Friday. Energy Select Sector SPDR Fund was up more than 2%, however, on higher oil prices and $12.1 billion all-cash bid for Petrohawk Energy from BHP Billiton .

Elsewhere in sector ETFs, Financial Select Sector SPDR Fund was down nearly 1% due to a late-day slide in Citigroup and Bank of America following Citi’s earnings report.

The S&P 500 “is struggling to gain traction” and resolution will only come “once macro uncertainties such as the U.S. debt ceiling an

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Tags: Etfs, Etfs Resume
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Posted on Friday, 15th July 2011 by Emily Smith

WASHINGTON – A proposed revision of the “advice” exemption of the Labor-Management Reporting and Disclosure Act (LMRDA) of 1959 will restrict access to legal counsel and forwards an organized labor agenda, opponents say.

The Department of Labor’s Office of Labor-Management Standards proposes to revise its interpretation of the ‘‘advice’’ exemption of LMRDA by limiting the definition of what activities constitute advice, which, in turn, expands those circumstances under which reporting is required of employer-consultant persuader agreements.

Section 203 of LRMDA requires employers to report to the government any arrangement with a labor relations consultant in which the “consultant undertakes activities to persuade employees concerning their rights to organize and bargain collectively.” The consultant must also report such arrangements to the government.

“We now believe that the Department’s current interpretation of the advice exemption may be overbroad, and could sweep within it agreements and arrangements between employers and labor consultants that involve certain persuader activity that Congress intended to be reported under the LMRDA,” the DoL explained in its proposed change notice.

The DoL said that there is “evidence (suggesting) that consultants, in order to avoid reporting under the LMRDA, engage predominantly in indirect persuader activity by directing their activities to the employer’s supervisors. The clarification of the dist

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Tags: Counsel, Legal Counsel, Restrict Access
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