The World’s Best Places to Live 2011

The world's biggest and most important cities aren’t often the best places in which to live. High levels of crime, traffic congestion, and long commutes can worsen the quality of life. So which are the best cities to live in the world?

We've put together a list of the world's 15 best cities, according to human resources consulting firm Mercer's 2011 quality of living survey. The annual report looks at living conditions in 221 cities worldwide and ranks them against New York as a base city in 10 categories such as economy, socio-cultural environment, politics, education, and the health sector.

This year the survey also identified cities with the highest personal safety rankings based on crime levels, law enforcement, international relations, and stability.

Cities in some of the world's biggest economies, including the US, Japan, and Britain, missed the cut. So, which cities made the list? Click ahead to find out.

15. Toronto, Canada
Population: 2.48 million

Toronto is one of only three Canadian and North American cities to make the list of the world's top 15 places with the best quality of life.

Canada’s largest city is the fifth most populous city in North America. The cosmopolitan hub, which consistently rates among the world’s most livable cities, has been a popular destination for immigrants over the past few decades. Half of Toronto's racially diverse population was born outside of Canada, compared with about 28 percent in global centers such as New York and London. About 30% of its residents speak a language other than Canada’s national languages, English, or French at home. The city is also Canada’s economic center, and home to the world’s seventh largest stock exchange by market capitalization. Its economy makes up almost a fifth of Canada’s gross domestic product (GDP).

Another key factor behind Toronto’s high ranking is the personal safety of its residents. Toronto is among five Canadian cities that dominate North America’s personal safety ranking. Tied with Vancouver, Montreal, Ottawa, and Calgary, Toronto is considered the 17th safest place in the world, more than 35 times safer than its closest American counterparts Chicago, Honolulu, Houston and San Francisco, according to the Mercer report.

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14. Ottawa, Canada
Population: 812,129

Ottawa is the capital city of Canada and one of six capital cities to make the list. Home to Canada’s federal agencies and foreign embassies, the city has the most highly educated workforce per capita in the country. Ottawa is also home to technology giants such as Nortel Networks, Cisco Systems, Alcatel Lucent, and Dell, with more than 90% of Canada's telecommunications research and development conducted there.

A high quality of life is often associated with a high cost of living in most cities on our list, but Ottawa defies that trend, being crowned the least expensive Canadian city to live in this year. Living in Ottawa is almost 55 times less expensive than living in Toronto — Canada’s costliest city, based on factors such as housing, transport, food, and clothing. It is also considered one of the cleanest in the world, coming in third in last year’s eco-city ranking, which measured factors such as water drinkability, sewage systems, air pollution, and waste removal.

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13. Wellington, New Zealand
Population: 197,700

Wellington is one of only three cities in the Asia-Pacific region to make the 2011 list.

The city is the world's southernmost capital and has the most educated population in the country, with more than one-third of its residents holding a bachelor’s degree or higher. Incomes in Wellington are above average for New Zealand. More than 40 percent of households have annual incomes of more than $66,000. The city also has a great climate, with 2,000 hours of sunshine every year, compared to an average of 1,500 hours in global centers such as London and 1,850 hours in Vancouver.

Despite high living standards for New Zealand’s cities, the country reported its first annual loss of migration in 10 years. For the year to Oct. 31, 100 permanent residents left the country, compared to a gain of 12,610 migrants for the same period dast year. Neighboring Australia’s booming economy, with higher wages and lower unemployment, has been a big draw for New Zealanders.

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12. Amsterdam, The Netherlands
Population: 756,347

Amsterdam is one of the most visited cities on our list, renowned for its red light district and marijuana serving coffee shops.

Coming to world prominence through trade during the Dutch Golden Age in the 17th century, the city has maintained a high quality of living as the cultural and financial center of the Netherlands. It’s home to the world’s oldest stock exchange and its historic canals, buildings, and infrastructure are a big draw for tourists. The city promotes varying lifestyles and about 54 percent of its households are single people. Households with two adults make up only 20 percent of the population, according to government statistics from 2009. The city also ranks among the top 20 in the world when it comes to personal safety.

Once regarded among the more generous European countries in welcoming immigrants, the Netherlands reputation has changed over the past decade. The anti-Islam, anti-immigration Freedom Party is a key ally for the ruling coalition in Parliament and has used its influence to push for tougher immigration policies. In September, the government announced plans to ban face-covering veils worn by some Muslim women because lawmakers argued that it flouts the Dutch way of life.

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11. Sydney, Australia
Population: 177,000

Sydney is Australia’s biggest city by population and the economic hub of the country. It accounts for about one quarter of Australia’s GDP.

The city is home to some of Australia’s most iconic landmarks, including the Opera House and Harbour Bridge. Its metropolitan area is set in one of the world’s most stunning harbors and is surrounded by national parks, bays, rivers, and beaches. As a major business hub, Sydney is headquarters to almost 40 percent of the top 500 Australian firms, as well as the location of 20 percent of the country’s finance sector, and 44 percent of its broadcasting industry. The median average annual income for residents is more than $55,000, with nearly one-fifth of its workforce making more than $2,000 a week.

In comparison to the rest of the Asia-Pacific region, both Australia and New Zealand far outweigh their counterparts in living standards and personal safety because of their continuous investment in infrastructure and public services. Many Asian cities rank at the bottom of the survey due to social instability, political turmoil, and natural disasters such as typhoons and tsunamis, according to the study. Only three Asian cities — Singapore at number 25, Tokyo at 46, and Kobe, Japan at 49 — make the top 50 places in the quality of life survey.

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9. Copenhagen, Denmark (tied)
Population: 548,443

Copenhagen has made Mercer’s list of top 15 cities for the past five years. The city’s staying power highlights Europe’s dominance in the quality of life survey. In fact, as many as eight of the top 10 cities in the world are in Europe. These cities continue to have high living standards because of their advanced infrastructure, and high-class medical, recreational, and leisure facilities.

Copenhagen was also the second highest ranked European city among the world’s most eco-friendly places in 2010. Known as the city of cyclists, it has a total 218 miles of cycle tracks, with about 36 percent of its population commuting by bicycle every day.

Health and well-being have become a big part of Danish lives, with more than 15 percent of its population over the age of 65. Increased health awareness has translated into Denmark becoming one of the leading consumers and producers of organic food in Europe. About 75 percent of food consumed in Copenhagen is organic, with organic food bought in every one of 10 purchases.

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9. Bern, Switzerland
Population: 130,000

Bern is the capital of Switzerland and one of three Swiss cities to make the top 10. The city has consistently held on to the number nine spot in the quality of life survey for the past four years.

Located in the Swiss plateau, the center of the city known as the old town of Bern, became a UNESCO World Heritage Site in 1983. Bern has been able to maintain its medieval charm over the centuries and has retained most of its historic features, including arcades, fountains, sandstone facades, towers, and narrow streets. Often ranked among the most expensive cities in the world, Bern is the center of Swiss engineering and manufacturing with medical, information technology, automotive, and luxury retail products such as watches made there.

This year, Bern is ranked as the second safest city in the world, after Luxembourg. Switzerland’s neutrality, and reputation as the traditional banking safe haven for the world’s wealthy — has made it an attractive place for relocation. However, growing immigration has become a cause of concern for the locals. The right-wing Swiss People’s Party wants to limit the number of immigrants entering the country, and the movement has seen a rise in popularity this year after tapping into growing fears that immigration could hurt the Alpine country’s high standard of life. Foreigners make up 22 percent of the country’s 7.9 million people and have been blamed for rising rents, crowded public transportation, and higher electricity bills.

Click HERE to see the rest of the world’s best cities to live in from CNBC.com.

 5 Minutes Read

Men, not women, drive luxury goods sales in China

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

Contrary to popular perception, men – not women – make up the bulk of consumers buying luxury goods in China. From Giorgio Armani clothes to Gucci handbags and Rolex watches, Chinese men have been outstripping women when it comes to shopping.

Contrary to popular perception, men – not women – make up the bulk of consumers buying luxury goods in China. From Giorgio Armani clothes to Gucci handbags and Rolex watches, Chinese men have been outstripping women when it comes to shopping.

In 2010, Chinese men spent 7 billion yuan ($1.1 billion) on their wardrobes, far more than the 2.8 billion yuan spent by women, according to a Bain report. Further, the market for luxury menswear in China is expected to rise 9 percent in 2011 compared to 7 percent for women`s wear, according to the consulting firm.

Looking to tap this spending power of Chinese men is Landmark Men – a 60,000 square-foot men`s-only mall in Hong Kong. Luxury brands like Valentino Men, Gucci and Louis Vuitton are nestled amongst premium grooming products, fragrances and gadgets in this sprawling mall that opened in October 2011.

Victor Luis, president of Coach Retail International in Shanghai was quoted by the Los Angeles Times as saying men make up 45 percent of the $1.2 billion market for all luxury handbags in China. In the U.S., that figure is just 7 percent. He added that “There`s a confidence and comfort in Chinese men utilizing bags in the same manner as women do.”

Vinay Dixit, Senior Expert and Leader of McKinsey Asia Consumer Center, told CNBC that over the past 12 months, Chinese men on average spent 61 percent more than women on fragrances and 52 per cent more on watches.

Seeing this growing affinity among Chinese men to shop, luxury brands are going all out to woo them. Dior Homme, for example, has around 35 freestanding men`s stores in China.

Burberry, the maker of the iconic check trench coat, has opened 59 stores in 31 Chinese cities with every store carrying a wider selection of men`s styles compared to other markets.

Louis Vuitton now has 36 stores in 29 cities across the mainland, compared to stores in just 10 cities in 2005. The company has used an Asian male model for the first time in its 2011 advertising campaign, a likely attempt to woo the male shopper in China.

Other retailers are also expanding rapidly. Gucci, which started with just six stores at the beginning of 2006, has 39 stores today. Hermes quadrupled its stores from five in 2005 to 20 today. All these stores house the company`s full range, including menswear. “There`s a reason for the rush: while many other markets are flat or shrinking, luxury goods are booming in China,” according to a 2011 McKinsey Insights China research report.

The report points out that China will account for over 20 percent of global luxury sales by 2015 and will overtake Japan as the world`s largest market for luxury goods. Market watchers say Chinese male consumers will drive much of this growth.

The average male luxury shopper in China is less than 45 years old, educated, well-traveled and entrepreneurial, says McKinsey`s Dixit.

According to a senior manager at a prominent luxury brand in Hong Kong, until a few years back, luxury consumption in China was a result of businessmen traveling abroad and bringing home fine goods. “Men were bigger shoppers than women, buying gifts for wives and business associates, very often for government officials,” he said.

But the motivations have now changed. Men are now rewarding themselves for hard work and success. “They also consider luxury labels as lending credence to not just their social status, but individual style,” said the McKinsey report.

L`Oreal, the French personal care products company, now sells more male grooming products in China than in Western Europe, according to media reports.

Sales in China in 2010 rose to 9.085 billion yuan ($1.38 billion), an 11.1 percent increase over the previous year, and a double-digit gain for the 10th consecutive year, said Alexis Perakis-Valat, CEO of L`Oreal China at a news conference in Beijing earlier this year.

According to a recent seven-country survey conducted by the New-York based Luxury Institute, attitudes toward shopping for luxury goods were far more positive in China than in rich nations. Seventy-five percent of Chinese said that luxury expenditures were “prudent” purchases, while 78 percent of wealthy consumers in the U.S., U.K., and Germany considered them to be an “extravagance.”

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Shanghai index may rally to 2760 after soft landing: Charts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

A weakening China economy is a further weight on global indexes. The current global fall may have been started by the euro zone collapse but many have looked for resilience in the China economy and China demand to help lift other economies.

A weakening China economy is a further weight on global indexes. The current global fall may have been started by the euro zone collapse but many have looked for resilience in the China economy and China demand to help lift other economies. Some counties like Australia have built an entire economic recovery strategy based on assumptions about continued China growth.



The key China question revolves around the ability of the government to manage a soft landing. Although this is seen as evidence of a command economy, and therefore doomed to failure according to some, the policy initiatives are not much different in approach to those used in Europe with government sponsored intervention, and in America, with government sponsored rescue packages.


The Shanghai Index shows a steady decline towards 2,300. This is a slowly moving downtrend and quite a contrast to the rapid collapses seen in the DOW, the DAX and the FTSE. This slow downtrend confirms a soft landing for China, although this does not preclude a bump or two. The Shanghai Index is developing a triple bottom rebound pattern. The small double bottom, shown as points A and B, lead to a successful rebound. The height of this pattern is approximately 118 index points.


The target for this pattern is calculated by measuring the distance from the lows to the peak of the rally and projecting this value upwards to give a target of 2,548. This target was not achieved because the resistance from the long-term downtrend line was too powerful. The market retreated from the long-term downtrend line.


This retreat shows the long-term downtrend line is a very significant resistance feature. In the future, a close above this downtrend line will be a very powerful trend reversal signal. This is a weekly close seen on a weekly chart.


The strongest support level is near 2,300. The 2,300 level acted as a support level in 2010 July and as resistance and support in 2009 February and March. A fall and rebound from support near 2,300 creates a triple bottom pattern.


Target calculations for a successful triple bottom pattern are calculated using the same method of measuring the height of the central rebound rally.



The third rebound point is somewhere near point C. If support near 2,300 is successful, then the distance to the peak of the most recent rally in November at 2,530 is approximately 230 index points. This value is projected above the peak of the rally at 2,530 and gives a long-term target near 2,760.


The wider the separation between the rebound lows in the double and triple bottom pattern then stronger the pattern rebound. The first double bottom pattern between points A and B developed over 9 days. This suggested a weak breakout pattern. The time between the first point in the triple bottom pattern at point A and the possible third point in the triple bottom pattern at point C is already more than 7 weeks. This makes the triple bottom pattern much stronger and this increases the potential for a stronger downtrend breakout.


The Shanghai Index has the potential to develop a triple bottom reversal pattern within the context of a broad consolidation base. This combination of features suggests a soft landing and a recovery.


Daryl Guppy is a trader and author of Trend Trading, The 36 Strategies of the Chinese for Financial Traders –www.guppytraders.com . He is a regular guest on CNBC`s Asia Squawk Box. He is a speaker at trading conferences in China, Asia, Australia and Europe.


If you would like Daryl to chart a specific stock, commodity or currency, please write to us at ChartingAsia@cnbc.com. We welcome all questions, comments and requests.


CNBC assumes no responsibility for any losses, damages or liability whatsoever suffered or incurred by any person, resulting from or attributable to the use of the information published on this site. User is using this information at his/her sole risk.


Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Why Japan’s rising bond yields aren’t alarming

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Japan`s bond market has seen low yields for so long, that this week`s jump in rates has caught many investors by surprise. Yields on 10-year government bonds hit a three-month high of 1.055 percent on Monday, jumping from a record low of 0.94 percent just last week.

Japan`s bond market has seen low yields for so long, that this week`s jump in rates has caught many investors by surprise. Yields on 10-year government bonds hit a three-month high of 1.055 percent on Monday, jumping from a record low of 0.94 percent just last week.



But a number of analysts told CNBC that the rise in yields and Japan`s debt-to-GDP ratio of 200 percent was still nothing to be alarmed about.


“The movements we have seen in the past few sessions have been eye-catching,” Sean Callow, Senior Currency Strategist at Westpac in Sydney, told CNBC on Tuesday. But he added the move was a case of profit-taking after Japanese government bonds (JGBs) had rallied sharply over the past few months.


Takahira Ogawa, Director of Sovereign Ratings, who covers Japan for Standard and Poor`s says that even after the recent rise, rates were still extremely low. He points out that the ministry of finance assumes a 2 percent rate in its budget projections, much higher than current levels.


Another reason analysts are so confident is because around 95 percent of JGBs are owned by domestic investors, who have very few alternatives for their savings. That`s allowed Japan`s government to keep spending, while enjoying rates that would be the envy of other G7 nations.


Earlier this month, the lower house of parliament approved a 12 trillion yen ($156 billion) stimulus package – to be funded by even more debt – to rebuild areas hit by the tsunami in March.


Martin Schulz, Senior Economist at the Fujitsu Research Institute in Tokyo, believes the increased supply of JGBs will find plenty of demand. “One of the problems I`m worrying the least about is the current government sovereign situation,” he said. “Demand is still incredibly strong, yields are still very, very low and the main reason for this is banks and companies and households don`t have a better place to put their money in.”



Almost all the analysts point out that Japan`s situation is very different from the sovereign debt crisis affecting Europe at the moment, even though the country`s debt-to-GDP ratio may be higher than that of Greece or Italy.


Standard and Poor`s Ogawa adds that by being part of the euro zone, Italy gets impacted by whatever happens in the multi-country union. “But Japan is one country, one currency. It has freedom in (deciding) monetary and fiscal policies. That is a significant difference between Italy and Japan.”


Christian Carrillo, Head of Asia-Pacific Interest Rate Strategy at Societe Generale, says, “The debt-to-GDP is a relatively random measure used to explain sovereign creditworthiness.” He points out that the key differences between Europe and Japan are that Japan enjoys a positive current account balance. In addition, the debt is largely domestically owned and denominated in local currency.


But there are growing concerns that Japan`s profligate spending, weak economy and overbought bond markets may eventually lose their status as a safe haven.


Richard Yetsenga, Global Head of FX strategy at ANZ bank says, the example of Europe and other emerging markets shows that when the crisis hits, it`s often extremely rapid. “The loss of faith typically is not a linear process, it`s typically a very explosive non-linear process… there will come a point, certainly, where (Japan`s) fiscal issues will become binding. But I think you have to be very careful about picking the timing, because it`s likely to impact the currency quite aggressively, when it starts to bite.”


According to Societe Generale`s Carrillo, two things could lead to a loss in Japan`s safe haven status. Either household and corporations will start to save less than what the government needs to borrow or the country would have to suffer a capital flight. For now though, both those possibilities seem a stretch, allowing Japan`s government and the analysts who cover the country to remain largely sanguine.


Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Hong Kong IPO rush is sign of bearishness: Strategist

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

The recent rush of companies listing in Hong Kong is not a bullish signal but, rather, an indication that credit is freezing up, forcing companies to raise funds via IPOs, Francis Lun, Managing Director of Lyncean Holding told CNBC on Tuesday.

The recent rush of companies listing in Hong Kong is not a bullish signal but, rather, an indication that credit is freezing up, forcing companies to raise funds via IPOs, Francis Lun, Managing Director of Lyncean Holding told CNBC on Tuesday.



“The flood of IPOs late in the year only demonstrates the dire need for funds from the corporate sector, and their lack of confidence for 2012,” Lun said. “Rather than taking a gamble next year and bet on a better market in 2012, many companies are content to raise funds now rather than later…there is no guarantee that market sentiment will improve next year.”


Lun`s comments follow a lackluster performance by HKT Trust, which made its debut on the Hong Kong Stock Exchange Tuesday. The telecom spinoff of PCCW, which was priced at the bottom of the IPO’s indicative price range last week, finished just slightly above its IPO price of HK$4.53, and drew lukewarm response from retail investors who subscribed to just a fraction of the 10% of the listing set aside for them.


The timing of the listing is unfortunate, says Mark Konyn, CEO of asset management firm RCM Asia Pacific, with global markets taking it on the chin amid the headwinds coming from Europe.


“It`s really the volatility that is going to weigh very heavily on investor sentiment, particularly for the retail tranches,” said Kohyn. “We saw limited demand within the retail sector, because investors are going to find it very difficult to participate.”


While HKT Trust`s pricing indicates a high 2012 yield of 8.9%, Lun was not convinced the IPO was all that attractive. “There are several other REITs in the market that provides 10% yield. So if you talk about yield, that`s not the one I`ll be looking for,” he said.


Further, with Hong Kong`s highly competitive telco market, there were concerns about saturation. “I think more importantly the telecom market in Hong Kong is extremely competitive and really immature and so there is really little room for growth,” Lun said.


Lun added that the way the spinoff was structured drew concerns from investors about the company`s high debt levels.


“When splitting this trust, PCCW shoved all the debt, every single penny of it to this trust, which means PCCW is debt free, but HKT is carrying all the debt. So that`s really about that too.”


Chow Tai Fook Next


Since September, more than $4 billion worth of Hong Kong listings have been shelved because of volatile markets and uncertainty in the global economic environment. Still, a handful of high profile listings are braving the odds and coming to the market by year-end, including Chow Tai Fook Jewelry which expects to raise up to USD 2.8 billion when it lists on December 15.


Lun says the jewelry firm, which earnings had tripled in the last three years, will find it was impossible to maintain earnings growth of 80% per annum and would have better luck raising funds now, at the peak of its earnings cycle, than in the future.


“If it does not list now, it will raise less money later in 2012,” Lun said.


But Lun is bearish on the benchmark Hang Seng, noting it had a `”nonexistent rebound” since its October low of around 17,000. He expects the index to fall further to 15,000 in a worst-case scenario, in the coming year.



Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Obama is provoking China into a trade war: Expert

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

It was billed as a new, bold President Obama who stood up to a rising China to reassert America`s power in the Asia-Pacific region. President Obama took a hard line at the recent Asian leaders summit in Bali, Indonesia, chastising China for not “playing by the rules”.

It was billed as a new, bold President Obama who stood up to a rising China to reassert America`s power in the Asia-Pacific region. President Obama took a hard line at the recent Asian leaders summit in Bali, Indonesia, chastising China for not “playing by the rules”.


He announced he would send 2,500 marines to rotate through Darwin, Australia and dispatch Hillary Clinton to Myanmar, China`s traditional ally, for the first visit in over 50 years by an American Secretary of State.



Many American analysts have applauded Obama`s aggressive stance, saying his forcefulness is smart because the Chinese only respect power. In a way those analysts are right: China respects power.

But many in China do not view Obama`s recent assertiveness as a display of power but weakness. They view the President as desperate to find scapegoats to get votes in next year`s 2012 presidential election.


A rising chorus in China also thinks America is determined to keep China down, so they are pushing the government to respond forcefully. Obama runs the risk of precipitating a trade war or worse as a response.

A politically influential person from Beijing told me, “Obama`s actions demonstrate he is trying to divert attention away from his inability to jumpstart job growth.” He continued to say, “Aside from pandering for votes, Obama is trying to contain China`s rise. We need to stand up to America. Military action is the last resort but we need to show we are strong and won`t be pushed around anymore.”

The state-owned China Daily ran a similar line underscoring China`s unease with American intentions. Tao Wenzhao, a professor of China-US relations at Beijing`s Tsinghua University, wrote of Obama`s recent moves, “Such a move by Washington is to contain a fast-growing China and to maintain its ebbing dominance in the region.”


Unlike in previous US election years when American politicians criticized China for easy votes and the Chinese responded with words only, there are differences this time that increase the risks of a trade war or worse.



First, China is undergoing a leadership transition in 2012. For the first time both China and America is having a leadership change in the same year. To cement power, leaders on both sides might appeal to factions calling for muscular responses, which could quickly spiral out of control.


Second, many Chinese feel China`s economic strength warrants the end of American hegemony. They bridle that global economic woes stemmed from America`s irresponsible financial and regulatory system yet Obama and the Senate continue to criticize China`s currency policy for the world`s economic ills.


Going forward, Obama needs to focus more on jumpstarting the American economy than blaming China. China respects power, but power that derives not just from military but economic strength as well. Obama should also engage in more bilateral, constructive discussions at the highest levels.


American businesses need to account for rising political risks in China and either look to other markets for investment or lobby Congress to take a calmer approach. It is likely that the Chinese government will make it more difficult for western businesses to get licenses or will crack down harder than normal when an American firm errs, as in Walmart`s case with the mislabeling of pork, to send clear messages to Washington. Already Chinese state-owned airlines have upped buying of Airbus planes over Boeing`s.


A trade war or worse won`t benefit China or the US. In order for America to get out of a recession and ensure global stability, economic not military engagement with China is the answer. Cooler heads need to prevail on both sides of the Pacific Ocean.


Shaun Rein is the founder and managing director of the China Market Research Group (www.cmrconsulting.com.cn) a strategic market intelligence firm, and is based in Shanghai.


He is the author of the upcoming book “The End of Cheap China: Economic and Cultural Trends that will Disrupt the World” published by John Wiley and Sons in the US. He does not own shares in any company mentioned.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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What’s really driving this crazy, mixed-up market

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Stocks staged a massive rally Monday after investors became convinced that the European debt crisis, once and for all, just might be fixed.

Stocks staged a massive rally Monday after investors became convinced that the European debt crisis, once and for all, just might be fixed.


Not convinced? Don’t worry, you’re not alone.


Still, just a morsel of good news out of the European Union – unconfirmed and unconvincing though it was – that a lasting remedy just might be in the works sent traders pushing the “buy” buttons and the indices soaring as much as 3%.


Tomorrow? Probably another 2% or 3% move in the other direction – if not tomorrow then the day after or at most the day after that.


But such is life in the crazy, mixed-up market that is dominated not by earnings or the economy but rather by which political machination is at work that either will alleviate or aggravate the sovereign debt crisis.


“If the equity markets are often so stupid as to react to the headlines as if they represented some truth upon their face let me advise each of you not to get lured into that trap, which is a place strewn with the lame and the blind,” Mark Grant, managing director at Southwest Securities, warned investors.



“The equity markets` rallies upon some headline, you may note, are always followed by a downdraft as the slow-witted finally figure out that the grand pronouncement is little more that hot air being belched up to mislead the masses,” he added.


Yet investors crowded the market Monday with belief that the International Monetary Fund – presumably with German backing – was ready to step in with an aide package of up to 600 billion euros to prop up ailing Italian debt.


The report, in Italian newspaper La Stampa, sparked another this-time-is-different moment that had investors believing, after a succession of failed trial balloons, that the EU finally had a workable plan to get out of the crisis.


“I give this potential change far more gravity than anything that`s come before,” Andrew Wilkinson, chief economic strategist at Miller Tabak in New York, said in an interview. “It`s a significant step because you`re talking about potentially ceding sovereign power to Brussels. If that occurs, that`s going to ensure a more rigorous fiscal backdrop for all European nations.”


Traders took the bait and delivered the markets from what had been a miserable November – in fact, the worst Thanksgiving week in nearly 80 years.


But who is really driving those the trades?



Certainly not long-term investors, who have been pulling money out of the market for months, doing so even during rallies.


Instead, it is primarily traders – both day traders as well as the high-frequency computer programs that are willing to react on emotion and momentum and drive the whipsaw trading that has dominated Wall Street for months.


“The emotions around the Street – it`s pretty hard to find a happy PM (portfolio manager) in 2011 even if they`re making money,” says Rick Bensignor, chief market strategist at Merlin Securities, a New York-based brokerage. “It`s been a very tough year for most players. Most of them can`t wait for the year to end.”


In November, traditionally one of the market’s best months, U.S. equity funds have lost USD 17.6 billion, with corporate buybacks the only thing preventing a further drop, according to TrimTabs.


“It doesn`t mean there aren`t decent trading ranges and opportunities to be had,” Bensignor added. “But I still don`t think it`s an investors’ market. It’s still definitely geared towards trading.”


For those traders, it’s been all about Europe, which in turn has driven the extreme volatility. With the eurozone being so unpredictable, the wild price swings are unlikely to fade.



“As the European debt crisis and the US fiscal debate have yet to be resolved, we expect policy news in Europe and the US to remain key drivers, especially in the equity and foreign exchange markets,” Goldman Sachs chief economist Jan Hatzius wrote in a recent analysis.


Hatzius looked at 10 market swings of more than 3 percent since early August and found that only two were driven by economic reports, with most of the others related to Europe.


“Recent improvements in US economic data should help calm risk sentiments, but – as the previous six months have shown – policy news can quickly overwhelm sentiment and spark more turbulent moves across markets,” he wrote.


Intervention, or the chance thereof, has been the primary driver in which way the market goes.


If investors believe the IMF, European Central Bank or other authorities are willing to backstop sovereign debt – in much the same way the U.S. Treasury did for banks during the financial crisis – then stocks go up, bond yields fall and the tumult subsides.


But on signs that Germany, in particular, is not willing to bail out its weaker neighbors, panic prevails, sending stocks lower and bond yields soaring.


“We expect central banks and governments to intervene even more aggressively as credit market conditions deteriorate,” TrimTabs CEO Charles Biderman said in the firm`s weekly market analysis. “As a result, volatility in financial markets is likely to remain extraordinarily high.”


Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Morgan Stanley slashes 2012 global growth forecast to 3.5%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

The continuing uncertainty over debt troubles in Europe and the US has increased the downside risks to global growth, according to Morgan Stanley. The bank downgraded its forecast for global growth next year to 3.5% from 3.8%, just three and a half months after it cut its forecast from 4.5%.

The continuing uncertainty over debt troubles in Europe and the US has increased the downside risks to global growth, according to Morgan Stanley. The bank downgraded its forecast for global growth next year to 3.5% from 3.8%, just three and a half months after it cut its forecast from 4.5%.


“Our economics team in Europe now expects a recession in Europe while the US economy is expected to continue growing below its trend,” said Morgan Stanley.


It also cut its 2012 growth estimate for Asia ex-Japan to 6.9% from 7.3%.


“Since we downgraded our regional growth outlook in August 2011, we have been constantly worried about the increasing downside risks to growth. In addition to further evidence of weakening domestic demand, the external environment in Europe has made us more concerned about the region’s growth outlook,” economists at Morgan Stanley said in a research note on Monday.


Morgan Stanley isn’t alone in its bearish view. Goldman Sachs warned on Friday that Europe’s public sector funding problems were starting to spill over into household and corporate credit, turning the moderate recession the bank was forecasting into a more full blown recession akin to the 2008/09 global recession.


Experts CNBC spoke to on Monday said Europe’s economy had likely begun contracting in the third or fourth quarter.


“The European economy is already essentially in recession, I think the UK is following close behind,” Russell Jones, Global Head of Fixed Income Strategy at Westpac Institutional Bank told CNBC on Monday.


According to Jones, given the fragility of Japan’s economy, it won’t take much to knock it into recession. He also believes that the encouraging US data in recent weeks is unlikely to last. “It is quite possible, we could be back in an environment that looks awfully redolent of 2008

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Check out: El-Erian picks 3 things to watch this week

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

The business sections of this weekend`s newspapers understandably focus on last week`s disappointing stock market performance (the worst in two months for the SandP) and another round of credit downgrades for European sovereigns (Belgium, Hungary and Portugal). Yet, these are essentially lagging indicators.

The business sections of this weekend`s newspapers understandably focus on last week`s disappointing stock market performance (the worst in two months for the SandP) and another round of credit downgrades for European sovereigns (Belgium, Hungary and Portugal). Yet, these are essentially lagging indicators. The stories that may well materialize in the next few weeks will be more heavily influenced by what happens this week to Europe`s latest yield curve inversion, core bond rates, and policy announcements.


Curve inversions are often seen as indicative of a potential tipping point-when market perceptions of a liquidity problem risk turning into self-fulfilling solvency concerns. As such, there is nothing good associated with last week`s curve inversion in Italy, the third largest bond market in the world.


With the 2-year interest rate on Italian bonds surging towards 8%, the yield differential with the 10-year ended the week at an inverted 60 basis points. Judging from what has happened in other European economies (namely, Greece, Ireland and Portugal), a prolonged inversion would materially increase the risk of Italy losing market access and having to seek a bailout.


Last week`s disappointing news out of Europe was not limited to the highly-indebted economies. There were also notable, albeit less dramatic developments in the bond markets for core governments, including powerhouse Germany


The yield on bunds, the German 10-year bonds, widened from 1.97% to 2.26% (implying a 30 basis point differential with the US). Damage elsewhere in the core was more extensive, including an additional 28 basis points deterioration in French 5-year CDS to a previously unthinkable level of 250 bps (mid). This took the widening so far in November to a staggering 74 bps for this AAA credit.


The longer it takes to stabilize Europe`s core bond markets, the greater the risk that capital flows within the Eurozone (namely, from the periphery to the core) may become swamped by flows out of the region as a whole, thereby threatening a region-wide credit crunch, triggering further rating downgrades, and undermining consumption, investment and trade.



These developments accentuate the pressures felt by markets that are already straining to function normally (see my previous post). It is therefore critical for Europe, and more broadly for the global economy, that they be reversed quickly.


This brings us to the third area of focus for the new week. The next few days will see a number of important policy announcements on and out of Europe. These go well beyond some EUR 15 billion in debt issuance by countries under market pressure and the run-up to the monthly ECB meeting on December 8th.


Some of the key annoucements relate to positioning in the run-up to yet another European Summit on December 9th. Others involve the potential augmentation of a key emergency financing facility-the EFSF-together with possible co-financing with the ECB and IMF.



Well crafted announcements (and related prior actions) can normalize the Italian yield curve and stabilize the bond market for core countries if, as I have argued before, they involve simultaneous progress in five key policy areas: designing more appropriate reform programs for highly-indebted economies; providing for a more credible delineation between the region`s liquidity cases and solvency ones; countering the deepening fragility of the banking sector; strengthening the institutional underpinning of the Eurozone, whether in its current configuration or a new one; and instituting a durable circuit breaker for what has been a continuous deterioration in market technicals that destroys private demand for European bonds.


So, while last week`s nearly 5% loss in the SandP 500 was the worst Thanksgiving-week loss since 1932, it is critical to stay on top of what is happening elsewhere. With a number of important announcements coming up this week, the well being of many economies and markets around the world depends on European policymakers being able to reverse the additional damage incurred last week, particularly in Italy and core markets.


(Dr. Mohamed El-Erian is CEO and co-CIO of PIMCO, the bond investment house.)


Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Strong start to holiday season may boost market’s mood

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

A good start to the holiday shopping season may provide a slight boost to sentiment in the week ahead, as investors await what`s likely to be an improved, but still weak jobs report Friday.

A good start to the holiday shopping season may provide a slight boost to sentiment in the week ahead, as investors await what`s likely to be an improved, but still weak jobs report Friday.



“Volume is likely to remain thin – People are interested in getting back in, but although the money is there, confidence is not … that`s one of the problems we`re having in terms of getting a sustainable rally,” said Doreen Mogavero, president and CEO of Mogavero, Lee and Co.


Europe may continue to unsettle markets, as European leaders look to build consensus around the idea of more integrated fiscal governance, ahead of yet another EU summit Dec. 9. Investors will also focus on the drama around Greece`s next aid payment, needed to avoid default in the next several weeks.


The November jobs report is expected to show payrolls increased by about 118,000, up from 80,000 in October, and an unchanged unemployment rate of 9 percent. Like other U.S. data, it should paint a picture of an economy that is improving slightly in the fourth quarter. There are also auto sales and the ISM manufacturing index, expected to show improvement and continued economic expansion.



Stocks in the past week were repeatedly stung by disappointment from the euro zone, making it the worst Thanksgiving week since the Great Depression. The markets also flashed a new message midweek as European sovereign yields continued to rise. Germany`s 6 billion euro debt auction stumbled, failing to bring enough buyers for its 10-year note and sending rates higher, a signal the strongest European economy is not immune to the stresses of the debt crisis. The German 10-year bund yield Friday was 31 basis points above the 10-year Treasury, the biggest premium since April 2009.


The 10-year Treasury was yielding 1.955 percent, after a week that saw it on both sides of 2 percent. The Dow finished the week down 4.8 percent at 11,231, its third worst week of the year and its worst Thanksgiving week since 1932. The SandP 500 fell 4.7 percent to 1158, the worst weekly performance in 10 weeks. The Dow is now down nearly 3 percent year-to-date and the SandP is down nearly 8 percent for the year.


The euro, in the past week, lost more than 2 percent and slid below 1.33. “If Greece doesn`t get funded, they`ll default before year end. There`s a December 9 meeting and I think there`ll be a lot of excitement and anticipation, but Greece has 20 days of cash left,” said Robert Sinche, head of global currency strategy at RBS, in an interview this past week. “We can have all these political meetings, important dates… but where the rubber meets the road is whether Greece makes its payments.”


President Obama holds a summit with European Union leaders in Washington Monday on a wide range of topics, including, of course, the debt crisis. Expected to attend are European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.


Jolly Holiday


November`s chain-store sales, scheduled to be released Thursday, will likely show that the U.S. consumer continues to be willing to spend, despite the wobbling stock market, poor jobs picture and broader economic malaise. Thomson Reuters expects the retailers it follows to report an average sales increase of 3.2 percent, with discount stores, expected to be the best performers, gaining 4.4 percent. Next best should be apparel, up 2.7 percent, but teen apparel is expected to see a decline of 0.9 percent.



The November reports should also give a clue about the holiday season, since they include Black Friday, the day after Thanksgiving and the traditional start of the holiday shopping season.


“I think it`s one of the more intense Black Fridays,” said retail analyst Dana Telsey of Telsey Advisory Group. Telsey expects the weekend sales to be strong and sees total holiday sales to be up 3.5 to 4 percent this year, better than many analysts are forecasting.


Some retailers got a jump on Black Friday by opening Thanksgiving night and offering online bargains all day Thursday. Telsey said retailers have good control over their inventories this year, but the theme of the season is going to be promotion. “We see the price incentives on the goods people want,” such as electronics and tablets, she said. Most holiday sales are made between Dec. 15 and 25, she said.


Retailers can make as much as 40 percent of their annual sales during the holiday season.


There`s No Place Like Home


As markets struggle with headwinds from Europe, and investors struggle with markets, some analysts see the U.S. as the best place to put money.


“The U.S. market is the best house on a bad block. The dollar has been telling you this for awhile,” said Richard Bernstein, ceo of Richard Bernstein Advisors. “The reason people are so bearish is they think about problems as only our problems. What we`re now finding out is that these other places do have issues. Ultimately fundamentals rule the day. Fundamentals in the U.S. are improving. I don`t think it`s fantastic but it`s adequate,” he said. Bernstein pointed to issues in emerging markets, like Brazil which reported GDP growth of just 0.3 percent and China, which reported a contraction in manufacturing, both in the past week.


“I think it depends on a couple of things. One is what happens to underlying fundamentals. Do earnings stay reasonably strong? Does the economy continue to improve? And number two, can Washington actually show some leadership? ” he said. In the past week, the Congressional super committee failed to agree on any of $1.2 trillion in required deficit reductions, triggering a process where automatic cuts will now take place in 2013.


Citigroup analysts, in a note Friday, also pointed out the attractiveness of U.S. assets, but from the perspective of Europeans.


“European investors are the most interested in American stocks since 2000,” wrote Citigroup chief U.S. equity strategist Tobias Levkovich. “A visit to Europe over the past two weeks found fund mangers there more intrigued by U.S. equities than seen since the tech bubble.” He said one reason was outperformance but investors are also concerned about the euro and whether countries will leave the single currency.


Levkovich also said the weak market itself could become a catalyst for a rebound. “A study looking back 50 years shows that there is a meaningfully better-than-random probability of a market rebound over the next six months when share prices drop four, five or six percent over relatively compressed trading periods,” he noted. He also said the current level may be an attractive entry point “barring exogenous shocks.”


Bernstein also pointed to the negative sentiment toward the market as a signal for a potential turning point.


“You have very weak retail participation,” said Bernstein. “You have institutions that are basically on hold. This is the sentiment you need to start a bull market cycle. I don`t know whether this goes on for a month or two months, I don`t know. We`re looking for opportunities to buy.”


Copyright 2011 cnbc.com

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

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Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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