Archive for category Fund Markets
Wall St higher as investors bet on Greece plan
Posted by Oksana Grebenjuk in Fund Markets on Июнь 27th, 2011
Stocks rebounded from three days of losses on Monday as investors bet there would be a near-term resolution to some of the uncertainty over Greece’s fiscal crisis, but the absence of a firm plan could limit the market’s upside.
The Greek parliament will begin to debate a deeply unpopular austerity program that must be approved in order to get the next bailout payment. A Greek minister warned of «catastrophe» if the measure is not passed in a vote later this week.
French President Nicolas Sarkozy said his government had an agreement with French banks on rolling over Greek debt into new 30-year bonds, which helped ease tensions around the region.
Traders see a Greek sovereign default as unlikely, and the S&P 500 holding its 200-day moving average was viewed as a sign of technical support following two months of heavy selling that brought the index down about 7 percent.
«There’s still a lot of fear out there, but the absence of bad news over the past few days, coupled with the selloff late Friday, is creating a bounce now,» said Mitch Rubin, chief investment officer at RiverPark Advisors in New York. Read the rest of this entry »
Stocks Rise on Greek Aid Optimism
Posted by Oksana Grebenjuk in Fund Markets on Май 31st, 2011
Stocks rose worldwide, paring the biggest monthly decline since August, and the euro gained amid speculation nations will pledge more aid to Greece. Commodities advanced, while Treasuries erased losses after U.S. economic reports missed forecasts.
The MSCI All-Country World Index increased 1 percent at 11:57 a.m. in New York, paring this month’s loss to 2.8 percent. The euro climbed to a three-week high of $1.4424, and the yen fell against its 16 major peers. Among 10-year bonds, German bunds added four basis points to 3.02 percent, Greek yields slid 31 basis points to 15.84 percent and Treasuries dropped to 3.05 percent from 3.10 percent. Oil rose, and wheat dropped.
European Union leaders will decide on a new aid package for Greece by the end of next month, Luxembourg’s Jean-Claude Juncker, who leads the group of euro-area finance ministers, said yesterday in Paris. More than $1.8 trillion was erased from the value of stocks worldwide this month through yesterday as evidence mounted that the U.S. economic recovery is slowing and EU officials struggled to contain the region’s debt crisis.
“Markets are focused on the debt crisis,” said Tom Mangan, who helps oversee $2.7 billion at James Investment Research Inc. in Xenia, Ohio. “We have had a pattern where the impact on the dollar is positive, U.S. bonds do better and stocks fade every time the Greek crisis rears its ugly head, and the other way around. This will continue until we get it resolved.” Read the rest of this entry »
LinkedIn Surges in First Day of Trading
Posted by Oksana Grebenjuk in Favourites, Fund Markets on Май 19th, 2011
LinkedIn Corp., the largest professional-networking website, more than doubled in the first day of trading after its initial public offering.
The stock surged as much as $47.99 to $92.99 and traded at $81.76 at 10:18 a.m. on the New York Stock Exchange. The Mountain View, California-based company sold 7.84 million shares at $45 each, according to a statement released yesterday. The company had raised the proposed range for the share sale on May 17, to $42 to $45 each from $32 to $35. The sale raised $352.8 million. The ticker symbol is LNKD.
Members of LinkedIn use the site to search for jobs, recruit employees and find industry experts. While users can create personal profiles for free, paid subscriptions were introduced in 2005, giving recruiters more access to candidates and providing professionals ways to communicate with one another. The company gets 70 percent of revenue from business subscriptions, a model that’s similar to Salesforce.com.
“The valuation for LinkedIn is rich,” said Michael Moe, chief investment officer of GSV Capital Management in Woodside, California, in a televised interview yesterday with Bloomberg West. “To earn the valuation, it has to continue to grow very, very fast.” Read the rest of this entry »
Google enters the bond market
Posted by Oksana Grebenjuk in Favourites, Fund Markets on Май 18th, 2011
Google plans to raise cash by selling bonds for the first time in the company’s history, the Internet search giant said Monday in a filing with the Securities and Exchange Commission.
Google (GOOG, Fortune 500) declined to comment about the size of the offering but news reports peg it at roughly $3 billion in short-to-medium term notes. The bonds are expected to be priced by market close Monday.
The company said it plans to use the proceeds to fund «general corporate needs and to repay the company’s outstanding commercial paper.»
Credit rating agency Moody’s gave the offering an investment grade ‘Aa2′ rating, citing «Google’s substantial financial flexibility as well as its conservative financial philosophy.»
Google currently sits on $36 billion in cash and short-term securities. But the bulk of that cash is tied up in overseas accounts, making it expensive to tap in the United States since Google would have to transfer and pay tax on the funds. Read the rest of this entry »
Two Charged in Insider Trading Scheme Linked to Law Firms
Posted by Oksana Grebenjuk in Favourites, Fund Markets on Апрель 8th, 2011
Federal prosecutors have charged a corporate lawyer and a trader with operating a decades-long insider trading scheme that earned the men $32 million.
Matthew Kluger, who until February was a lawyer in the mergers and acquisitions department of the California law firm Wilson Sonsini Goodrich & Rosati, is accused of “stealing” material nonpublic information about deals that his firm was working on, according to federal prosecutors in New Jersey.
Mr. Kluger, the government’s complaint said, shared the information with Garrett Bauer, a trader who then used the tidbits to place bets on certain firms involved in the deals.
In April 2009, for instance, Mr. Kluger tapped Sonsini’s computer system to gather information about the Oracle Corporation’s proposed bid for Sun Microsystems. Shortly thereafter, Mr. Bauer purchased more than four million shares of Sun Micro. The deal closed in early 2010.
The scheme, according to the government, dates back to the 1990s when Mr. Kluger was a lawyer at two of the biggest Wall Street law firms, Cravath Swaine & Moore and Skadden, Arps, Slate, Meagher & Flom. Mr. Kluger left Sonsini’s Washington office in March. Read the rest of this entry »
Three Critical Things You Need to Know About Emergency Funds
Posted by Oksana Grebenjuk in Fund Markets on Апрель 5th, 2011
Everyone talks about how important it is to have an emergency fund, but few people talk about what kind of emergency fund that should be.
After all, there’s a big difference between stuffing money in a shoe box for a rainy day and setting up a savings account. Take it up a level, and there’s a big difference between letting your money hang out in a standard savings account and investing in a no-penalty CD or money market account.
So if you’re wondering exactly where you should put those emergency funds, here are some thoughts to consider:
You Want to Make Sure Your Money Is Accessible
We’ll start with the obvious. This is an emergency fund, so while you may want your money to earn a little interest, little is the critical word here. Read the rest of this entry »
Stocks fall as worries mount over Japanese economy
Posted by Oksana Grebenjuk in Fund Markets on Март 17th, 2011
Mounting concerns over the impact of the massive earthquake in Japan pushed stocks lower Monday. The earthquake and tsunami along Japan’s northeast coast killed thousands and has raised fears of a slowdown in the world’s third-largest economy.
All 10 company groups that make up the Standard and Poor’s 500 index fell. Utilities companies lost 1.5 percent, the most of any group, on worries that the disaster may lead to dimming prospects for nuclear power plants.
The S&P index, the basis for most U.S. mutual funds, fell 12 points, or 0.9 percent, to 1,292.
The Dow Jones industrial average fell 89, or 0.7 percent, to 11,958. The Nasdaq composite fell 18, or 0.7 percent, to 2,697.
«Everything is linked now,» said David Katz, senior portfolio strategist at Weiser Capital Management. «There is no such thing as a catastrophe happening in any major country and it not affecting the global economy.» Read the rest of this entry »
Stocks drop on Libya, surprise Chinese deficit
Posted by Oksana Grebenjuk in Fund Markets on Март 14th, 2011
The battle for control of Libya and weaker than expected Chinese economic data weighed on markets Thursday while a debt rating downgrade of Spain hit the euro, a day ahead of a crucial meeting of EU leaders.
Sentiment over the past few weeks has been driven by developments in North Africa, most recently in Libya, which in normal times produces a little under 2 percent of the world’s global oil needs.
Though the regime of longtime leader Moammar Gadhafi appears to be recapturing ground lost to rebels, investors remain cautious of staking out fresh positions given worries over oil supplies and how the crisis in the Arab world will spread.
The main impact has been in oil markets, sending prices up to their highest levels for around two and a half years. By mid-morning London time, the benchmark oil contract on the New York Mercantile Exchange was down 3 cents at $104.35 a barrel, while Brent crude in London fell 71 cents to $115.23.
Both rates are slightly lower than where they were on Monday but remain elevated and a threat to global growth prospects. That fear has hung over stock markets recently — equities are a leading indicator of perceptions for economic expansion. Read the rest of this entry »
Stocks rise sharply after unemployment claims fall
Posted by Oksana Grebenjuk in Fund Markets on Март 3rd, 2011
Stocks jumped higher Thursday after an unexpected drop in new applications for unemployment benefits and higher February sales reports from retailers.
The Labor Department said first-time claims for unemployment benefits fell to 368,000. That’s the lowest level for claims since May 2008. Economists had expected them to rise. Separately, the Institute for Supply Management reported that its measure of hiring by service companies rose to the highest level since April 2006. The index covers a broad range of industries including retail, health care and financial services.
The signs of job growth followed a report Wednesday from payroll processor ADP that said that private employers are added more jobs than expected last month. Those gains are helping to bolster expectations that Friday’s jobs report will show that the unemployment rate fell from its current level of 9 percent.
The Dow Jones industrial average gained 183 points, or 1.5 percent, to 12,250 in afternoon trading. The Standard & Poor’s 500 index rose 19, or 1.5 percent, to 1,328.
All 10 company groups that make up the S&P index rose. Industrial companies had the largest gain, with 2.3 percent. Caterpillar Inc. gained 3 percent, the largest increase among the 30 stocks that make up the Dow average. Read the rest of this entry »
China flexed its muscles using U.S. Treasuries
Posted by Oksana Grebenjuk in Fund Markets on Февраль 25th, 2011
Confidential diplomatic cables from the U.S. embassies in Beijing and Hong Kong lay bare China’s growing influence as America’s largest creditor.
As the U.S. Federal Reserve grappled with the aftershocks of financial crisis, the Chinese, like many others, suffered huge losses from their investments in American financial firms — from Lehman Brothers to the Primary Reserve Fund, the money market fund that broke the buck.
The cables, obtained by WikiLeaks, show that escalating Chinese pressure prompted a procession of soothing visits from the U.S.Treasury Department. In one striking instance, a top Chinese money manager directly asked U.S. Treasury Secretary Timothy Geithner for a favor.
In June, 2009, the head of China’s powerful sovereign wealth fund met with Geithner and requested that he lean on regulators at the U.S. Federal Reserve to speed up the approval of its $1.2 billion investment in Morgan Stanley, according to the cables, which were provided to Reuters by a third party.
Although the cables do not mention if Geithner took any action, China’s deal to buy Morgan Stanley shares was announced the very next day.
The two Treasury officials to whom the cables were addressed, Deputy Assistant Secretary for Asia Robert Dohner and Deputy Assistant Secretary for International Monetary and Financial Policy Mark Sobel, declined through a spokesperson to comment for this story. The State Department also declined to comment. Read the rest of this entry »
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Big Banks Easing Terms on Loans Deemed as Risks
6 Июль 2011
Euro Area Backs Greek Aid, Looks to New Bailout
4 Июль 2011
Americans may hit gas again after reserve release
29 Июнь 2011
Obama takes flak for tapping emergency oil reserves
28 Июнь 2011
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