The US Treasury Department has advised US money managers that Washington’s sanctions on Moscow bar any secondary market purchases of debt or stocks...
The Treasury’s guidance published yesterday said executive orders imposing sanctions on Russia “prohibit US persons from purchasing both new and existing debt and equity securities issued by an entity in the Russian Federation.”“Consistent with our goal to deny Russia the financial resources it needs to continue its brutal war against Ukraine, Treasury has made clear that US persons are prohibited from making new investments in the success of Russia, including through purchases on the secondary market,” a Treasury spokesperson said.
Read more at:
US Treasury says all buying of Russian debt and equity banned under sanctions - Russia Debt
Showing posts with label Stocks. Show all posts
Showing posts with label Stocks. Show all posts
6/7/22
10/28/20
USA: Stocks Close Sharply Lower on Rising Coronavirus Cases - as Donald Trump brags the US turned the corner on the Coronavirus
U.S. stocks continued to sell off on Wednesday in what is shaping up to be their worst week since late March, as rising coronavirus infections shook investors’ confidence in the global economic recovery.The Dow industrials lost 943.24 points, or 3.4%, to 26519.95, their fourth losing session in a row and worst day since June 11.
Read more at: Stocks Close Sharply Lower on Rising Coronavirus Cases - WSJ
Read more at: Stocks Close Sharply Lower on Rising Coronavirus Cases - WSJ
5/19/20
Stocks: Don’t even think of owning stocks unless you’re willing to buy and hold for at least 10 years - MarketWatch
With U.S. stocks having recovered from its March waterfall decline to
within 13% of its Feb. 19 all-time high, many are wondering if it’s
safe to step back into the market.
In fact, some brokers are now enticing investors with visions of another bull market run like the one that began in March 2009, the longest in U.S. market history.
Read more at:
Don’t even think of owning stocks unless you’re willing to buy and hold for at least 10 years - MarketWatch
In fact, some brokers are now enticing investors with visions of another bull market run like the one that began in March 2009, the longest in U.S. market history.
Those visions may come to pass, but
you’re in for a long wait. In fact, only if you’re willing not to touch
your money for 10 years — until 2030 — should you even think of putting
new money into the stock market right now.
Read more at:
Don’t even think of owning stocks unless you’re willing to buy and hold for at least 10 years - MarketWatch
4/29/20
USA: Stocks Are Recovering While the Economy Collapses. That Makes More Sense Than You'd Think.- by Zachary Karabell
On March 23, U.S. stock markets closed the day after a multi-week
plunge of nearly 30%. This drop coincided with a wave of lockdowns
across the country, as well as similar moves throughout Europe, Latin
America and South Asia. Since then, the U.S. economy has been in
free-fall, with more than 26 million people filing for unemployment,
waves of retail stores on the edge of bankruptcy, energy and oil
companies teetering on the brink, travel grounded, and the GDP was down
4.8% in the first quarter and this quarter is likely to be much worse.
The stock market? Overall, stocks are up across all indices more than
30% from that low point in late March.
What is going on? How can it be that stocks are soaring when the economy is crashing? Market movements are often head-scratching, but in this case, the answer may be relatively simple: because of moves by the Federal Reserve, financial markets are awash in money, vast, water-hose supplies of money. Since March, the Fed has committed to lend or buy trillions of dollars of financial assets, which by some estimates might end up exceeding $8 trillion dollars by the time all is said and done. No one knows how high that figure will climb. By way of comparison, during the last financial crisis in 2008-2009, the Fed ended up adding about $3 trillion over the course of several years.
And it’s not just the Fed. Congress has allocated almost $3 trillion in economic aid; the Bank of Japan is doing much the same as the Fed for the world’s third largest economy; the European Central Bank is not far behind, and multiple governments around the world are following suit.
The result is that even as real-world economies freeze and implode in the short-term, financial markets are buoyed by a tsunami of liquidity.
That troubles many investors, who see either sharp spikes of inflation or dire reckoning ahead for stocks and bonds. Respected investor Jeffery Gundlach, one of the most influential bond managers, warned this week that markets will soon head south fast and the people should be more “wary of panaceas.” Analysts at Bank America posit that the recent market strength is simply a dead-cat bounce like what happened in 2008 before a more intense crash later that year. Others believe that all the liquidity in the world cannot compensate for the collapse of real-world economic activity and these moves by the Fed and governments are the equivalent of flooding a drought stricken area with water for a few days. It feels like a relief, but if there is no rain in the months after, it does little good.
And yet, there is something else going on that should give pause to the belief that market strength is a head fake. If it were only about a sea of money floating everything, then you would think that stocks across the board would be going up. That is not the case.
In fact, there is a dramatic difference in how individual companies are faring that reflects a cold-eyed assessments of how they will do in a pandemic world. Companies that are seen as especially vulnerable, such as retail stores spread across malls, are seeing stock declines of 50% and have only recovered marginally since March 23. The Gap, Macy’s, Michael Kors, all face daunting prospects, and no amount of liquidity in financial markets will paper that over. Energy companies, with plunging demand for oil and high debt loads, are in some cases on the verge of bankruptcy, and even the survivors like oil service giant Schlumberger (based in Houston) has seen its stock more than halved since March. The same is true for airlines and hotels. Yes, JetBlue’s planes will eventually fly and have passengers, but there is no guarantee that they will be operated by a company called JetBlue two years from now.
On the flip side, clear beneficiaries of the current upheaval are doing well. Five mega-tech companies – Amazon, Apple, Microsoft, Facebook and Google – alone make up $5 trillion of market cap, and Amazon in particular has seen its stock go up more than 30% since mid-March. Costco and Clorox have seen booming business along with Walmart, as has the video conference company Zoom.
And for those who – understandably – might see all of this as yet further proof that once again, the financial world will get saved at the expense of tens of millions of real people and millions of small companies will get sacrificed, this time it is different. The Fed, for instance, is committed to purchasing hundreds of billions of dollars of municipal bonds at favorable rates, which will mean that cash-strapped state governments should be able to retain teachers and policemen and programs even if Congress proves negligent as Mitch McConnell seems to be pushing for. That will mean that pensions for public servants remain intact. The Fed also is about to lend another $500 billion to Main Street businesses, which is coming too late to avoid the pain of the last month but will still matter greatly to the ability of companies to move forward and eventually rehire. The most visible effect of the money in motion now is the stock market, but that will be not the sole beneficiary as more Fed money flows to states and Main Street.
So while it appears crazy that markets are doing relatively well as the world economy burns down, there is a method to the madness that reflects some potentially positive realities of an otherwise dire time. That may be small comfort just now, but it is a clear reminder that as bad as things are just now, they actually could be considerably worse.
Read more at: Stocks Are Recovering While the Economy Collapses. That Makes More Sense Than You'd Think.
What is going on? How can it be that stocks are soaring when the economy is crashing? Market movements are often head-scratching, but in this case, the answer may be relatively simple: because of moves by the Federal Reserve, financial markets are awash in money, vast, water-hose supplies of money. Since March, the Fed has committed to lend or buy trillions of dollars of financial assets, which by some estimates might end up exceeding $8 trillion dollars by the time all is said and done. No one knows how high that figure will climb. By way of comparison, during the last financial crisis in 2008-2009, the Fed ended up adding about $3 trillion over the course of several years.
And it’s not just the Fed. Congress has allocated almost $3 trillion in economic aid; the Bank of Japan is doing much the same as the Fed for the world’s third largest economy; the European Central Bank is not far behind, and multiple governments around the world are following suit.
The result is that even as real-world economies freeze and implode in the short-term, financial markets are buoyed by a tsunami of liquidity.
That troubles many investors, who see either sharp spikes of inflation or dire reckoning ahead for stocks and bonds. Respected investor Jeffery Gundlach, one of the most influential bond managers, warned this week that markets will soon head south fast and the people should be more “wary of panaceas.” Analysts at Bank America posit that the recent market strength is simply a dead-cat bounce like what happened in 2008 before a more intense crash later that year. Others believe that all the liquidity in the world cannot compensate for the collapse of real-world economic activity and these moves by the Fed and governments are the equivalent of flooding a drought stricken area with water for a few days. It feels like a relief, but if there is no rain in the months after, it does little good.
And yet, there is something else going on that should give pause to the belief that market strength is a head fake. If it were only about a sea of money floating everything, then you would think that stocks across the board would be going up. That is not the case.
In fact, there is a dramatic difference in how individual companies are faring that reflects a cold-eyed assessments of how they will do in a pandemic world. Companies that are seen as especially vulnerable, such as retail stores spread across malls, are seeing stock declines of 50% and have only recovered marginally since March 23. The Gap, Macy’s, Michael Kors, all face daunting prospects, and no amount of liquidity in financial markets will paper that over. Energy companies, with plunging demand for oil and high debt loads, are in some cases on the verge of bankruptcy, and even the survivors like oil service giant Schlumberger (based in Houston) has seen its stock more than halved since March. The same is true for airlines and hotels. Yes, JetBlue’s planes will eventually fly and have passengers, but there is no guarantee that they will be operated by a company called JetBlue two years from now.
On the flip side, clear beneficiaries of the current upheaval are doing well. Five mega-tech companies – Amazon, Apple, Microsoft, Facebook and Google – alone make up $5 trillion of market cap, and Amazon in particular has seen its stock go up more than 30% since mid-March. Costco and Clorox have seen booming business along with Walmart, as has the video conference company Zoom.
And for those who – understandably – might see all of this as yet further proof that once again, the financial world will get saved at the expense of tens of millions of real people and millions of small companies will get sacrificed, this time it is different. The Fed, for instance, is committed to purchasing hundreds of billions of dollars of municipal bonds at favorable rates, which will mean that cash-strapped state governments should be able to retain teachers and policemen and programs even if Congress proves negligent as Mitch McConnell seems to be pushing for. That will mean that pensions for public servants remain intact. The Fed also is about to lend another $500 billion to Main Street businesses, which is coming too late to avoid the pain of the last month but will still matter greatly to the ability of companies to move forward and eventually rehire. The most visible effect of the money in motion now is the stock market, but that will be not the sole beneficiary as more Fed money flows to states and Main Street.
So while it appears crazy that markets are doing relatively well as the world economy burns down, there is a method to the madness that reflects some potentially positive realities of an otherwise dire time. That may be small comfort just now, but it is a clear reminder that as bad as things are just now, they actually could be considerably worse.
Read more at: Stocks Are Recovering While the Economy Collapses. That Makes More Sense Than You'd Think.
9/5/19
Global economy: Major European Bank expects stocks to drop through the end of the year
This big bank expects stocks to drop through the end of the year—here’s why -
Read complete report at:
https://on.mktw.net/2HLQ1uM
https://on.mktw.net/2HLQ1uM
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3/10/15
Global ECONOMY: markets slide amid fears of historic US interest rate rise
Global stocks have spiraled downwards
amid lingering concerns over Greece going bankrupt and the prospect of
the first rise in US interest rates in almost a decade.
In Europe shares across the board fell, despite the European Central Bank’s new bond-buying campaign continuing to push down the euro and the bloc’s already record-low borrowing costs.
London’s FTSE, Britain’s top share index, suffered its biggest decline so far this year, hit by falls in insurer Prudential and energy stocks such as BG. The FTSE closing down 2.5 percent at 6,702.84 points.
Commodities struggled while oil prices dropped to near one-month lows as oversupply and weak demand pushed Brent crude oil futures down.
In Europe shares across the board fell, despite the European Central Bank’s new bond-buying campaign continuing to push down the euro and the bloc’s already record-low borrowing costs.
London’s FTSE, Britain’s top share index, suffered its biggest decline so far this year, hit by falls in insurer Prudential and energy stocks such as BG. The FTSE closing down 2.5 percent at 6,702.84 points.
Commodities struggled while oil prices dropped to near one-month lows as oversupply and weak demand pushed Brent crude oil futures down.
Read more: Global markets slide amid fears of historic US interest rate rise
10/20/14
Wall Street: IBM Tanking - Q3 Earnings drop - by Sam Ro
IBM shares are tumbling after the company announced disappointing Q3 earnings.
The business services giant announced $3.68 per share of operating earnings from continuing operations, which is much weaker than the $4.32 expected by analysts.
Revenue fell 4% year-over-year to $22.4 billion.
"We are disappointed in our performance," CEO Ginni Rometty said. "We saw a marked slowdown in September in client buying behavior, and our results also point to the unprecedented pace of change in our industry. While we did not produce the results we expected to achieve, we again performed well in our strategic growth areas — cloud, data and analytics, security, social, and mobile — where we continue to shift our business."
This is concerning, not just for IBM investors. As a global provider of business software and services, this could be reflective of problems in the global economy.
The business services giant announced $3.68 per share of operating earnings from continuing operations, which is much weaker than the $4.32 expected by analysts.
Revenue fell 4% year-over-year to $22.4 billion.
"We are disappointed in our performance," CEO Ginni Rometty said. "We saw a marked slowdown in September in client buying behavior, and our results also point to the unprecedented pace of change in our industry. While we did not produce the results we expected to achieve, we again performed well in our strategic growth areas — cloud, data and analytics, security, social, and mobile — where we continue to shift our business."
This is concerning, not just for IBM investors. As a global provider of business software and services, this could be reflective of problems in the global economy.
1/29/14
EU unveils plan to ban banks' proprietary trading
The European Union
has unveiled a much-delayed plan to rein in banks' proprietary trading
and give supervisors the power to split off risky trading activities
from safer lending operations in an effort to tackle the risks posed by
banks that are deemed "too big to fail."
Read more: EU unveils plan to ban banks' proprietary trading - MarketWatch
But following pressure from the banking industry, the proposal stops far
short of a forced separation of retail banks from investment banks that
was advocated 15 months ago by an EU-appointed group of experts.
Officials said the plan was unlikely to be adopted any time soon given
that the European Parliament--which must ratify any agreement--is set to
dissolve ahead of elections in May.
"It is certainly not satisfactory to bring something out when the last
date for accepting legislation was last July," said Sharon Bowles,
chairwoman of the European Parliament's influential economic affairs
committee. "Nothing will happen on [this] in this Parliament."
Michel Barnier, the EU commissioner responsible for the proposal,
admitted Tuesday that the text wouldn't be voted on until the end of
this year or early next year.
The blueprint by the European Commission,
the EU's executive arm, is the final piece in Europe's lengthy overhaul
of its banking system in the wake of the financial crisis, a process
that has encompassed fatter capital cushions, bonus caps for bankers and
plans for a euro-zone banking union.
Wednesday's proposal is aimed narrowly at a problem that hadn't yet been
addressed by the cascade of new EU regulations--so-called
"too-big-to-fail" banks, which benefit from lower funding costs because
investors assume governments will bail them out rather than let them
collapse. It seeks to harmonize laws that have already been adopted in
several EU countries to deal with too-big-to-fail institutions,
including Germany, France and the U.K.
The commission plans to impose an outright ban on proprietary trading by
about 30 of the region's biggest banks, following the example set by
the Volcker rule in the U.S., although the latter will apply to all
banks. Europe's 30 biggest lenders include HSBC in the U.K., Deutsche
Bank and France's BNP Paribas.
Read more: EU unveils plan to ban banks' proprietary trading - MarketWatch
7/2/12
Europe, Asia Stocks Gain on Factory Gauges; Euro Weakens
European stocks rose for a second day and Asian equities headed for their longest winning streak since March as manufacturing indicators in Japan and China beat forecasts. The euro fell before factory and jobs data for the currency bloc and oil declined from a one-month high.
Read more: Europe, Asia Stocks Gain on Factory Gauges; Euro Weakens - Businessweek
Read more: Europe, Asia Stocks Gain on Factory Gauges; Euro Weakens - Businessweek
4/13/11
EU STOCKS ARE PROFITABLE: Europe twice as bullish as US as net rises 20%
European companies are reporting the biggest profit rise in six years as the region's economic expansion overcomes the sovereign debt crisis , making stock strategists almost twice as bullish as their US counter-parts.
While Portugal became the third euro member to seek a bailout from the European Union, the benchmark Stoxx Europe 600 Index rose 0.6% last week, extending its two-year rally to 78%. The region's single currency posted its biggest first-quarter gain on record. Yields on Spanish and Italian bonds are falling compared with German bunds, a signal investors don't expect the debt debacle to spread. Equity valuations are near two-year lows.
Earnings for Stoxx 600 companies may rise 20% in 2011, led by exporters from Bayerische Motoren Werke AG to Cie de Saint-Gobain, according to data compiled by Bloomberg. The increase would bring the two-year gain to 93%, the most since 2005, leading 11 strategists tracked by Bloomberg to predict an 8.1% rise in benchmark indexes. US forecasts show the Standard & Poor's 500 Index will gain 5.3%. "Profits are there and this shows us the economy is in good health," Alain Bokobza, the Paris-based head of asset allocation strategy at Societe Generale, which manages $300 billion, said in a phone interview from New York.
For more: Europe twice as bullish as US as net rises 20% - The Economic Times
While Portugal became the third euro member to seek a bailout from the European Union, the benchmark Stoxx Europe 600 Index rose 0.6% last week, extending its two-year rally to 78%. The region's single currency posted its biggest first-quarter gain on record. Yields on Spanish and Italian bonds are falling compared with German bunds, a signal investors don't expect the debt debacle to spread. Equity valuations are near two-year lows.
Earnings for Stoxx 600 companies may rise 20% in 2011, led by exporters from Bayerische Motoren Werke AG to Cie de Saint-Gobain, according to data compiled by Bloomberg. The increase would bring the two-year gain to 93%, the most since 2005, leading 11 strategists tracked by Bloomberg to predict an 8.1% rise in benchmark indexes. US forecasts show the Standard & Poor's 500 Index will gain 5.3%. "Profits are there and this shows us the economy is in good health," Alain Bokobza, the Paris-based head of asset allocation strategy at Societe Generale, which manages $300 billion, said in a phone interview from New York.
For more: Europe twice as bullish as US as net rises 20% - The Economic Times
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