Money Matters: Firstline Securities Blog
In the U.S.: Stock Futures Fluctuate as BofA, Alcoa Fall
6 January 2012
Jobs data in: unemployment down to 8.5%, payrolls climb to 200,000. Early rally expected despite earnings season worries.
U.S. stock futures fluctuated, following three days of gains for the Standard & Poor’s 500 Index, before a report that will offer clues about the strength of the labor market in the world’s biggest economy. Read more…
In Europe: ECB’s Orphanides wants to stop making banks pay for Greece
6 January 2012
When does Peter stop paying for Paul? Cautious outlook highlighted by “commercial banks’ overnight deposits” at the ECB reaching record high.
European Central Bank policymaker Athanasios Orphanides called for euro zone leaders to abandon plans to make private sector investors help reduce Greece’s debts – a move likely to get little traction with the currency bloc’s paymaster, Germany.
Orphanides, who is also the central bank governor of Cyprus, said in a newspaper column published on Friday that dropping plans to force losses on private sector holders of Greek debt would “help restore trust” in the euro zone and lower the borrowing costs of other governments in the currency union. Read more…
In T&T: Petrotrin, OWTU want McLeod to mediate
5 January 2012
Positive steps taken to remedy labour situation at Petrotrin. “Five items” Â of contention yet to be ironed out, as Minister’s assistance is required.
State-owned oil company Petrotrin and the Oilfields Workers’ Trade Union (OWTU) will take wage negotiations to Labour Minister Errol McLeod, although they signed off on five Memoranda of Understanding (MOU) on Tuesday.
In a statement yesterday, the oil company said the MOUs, which were signed late on January 3 at the company’s Pointe-a-Pierre offices, reflected a genuine commitment by both parties to resolve outstanding issues in the best interest of employees. Read more…
In the U.S.: Stocks, Euro Decline on Debt Crisis Concern
5 January 2012
Clear signs that trouble out of Europe is not close to being over. Stocks to retreat in early trading sessions.
Stocks (MXWD) and the euro declined on concern Europe will struggle to contain the debt crisis as borrowing costs rose at sales of securities by France and Hungary. U.S. futures dropped, signaling the Standard & Poor’s 500 Index will retreat for the first time this year.
The Stoxx Europe 600 Index (SXXP) lost 0.8 percent at 7:25 a.m. in New York as UniCredit SpA, Italy’s biggest bank, tumbled for a second day. S&P 500 futures slid 0.7 percent. The euro weakened 0.9 percent to $1.2827, and French 10-year bond yields rose five basis points. Hungary’s forint sank 0.6 percent to 322.66 against the euro. Read more…
In Europe: French costs rise but demand solid at debt sale
5 January 2012
If you’ve been reading our weekly blog, this news should come as no surprise. “France will need more painful austerity measures…”
French borrowing costs rose slightly when the euro zone’s second-largest economy sold debt for the first time this year on Thursday but demand was solid despite concerns the country could lose its AAA credit rating.
With a heavy schedule of debt redemptions in the first quarter, market fears about euro states’ ability to fund their debts remains high. France, which has a slowing economy and a presidential election looming in April, is seen by many to be at greater risk from ebbing investor confidence than regional powerhouse Germany. Read more…
In T&T: We lead region in exports to U.S.
4 January 2012
Petro-chemicals, apparel pave the way according to 2010 figures  for preferred tarriff trade, under CBI.
Trinidad and Tobago has become the leading source of United States imports entering under the Caribbean Basin Initiative (CBI) tariff preferences while Jamaica is the third leading source of US imports under CBI tariff preferences in 2010, according to the latest report issued by the Office of the United States Trade Representative.
In the “Ninth Report to Congress on the operations of the Caribbean Basin Economic Recovery Act 2011″, the US imported US$2.2 billion under CBI tariff preferences from Trinidad and Tobago in 2010, an increase of 43.8 per cent from 2009.
“Imports under CBI tariff preferences from Trinidad and Tobago are dominated by petroleum and methanol, and 75 per cent of imports of these two goods entered under CBI provisions in 2010. Read more…
In the U.S.: Stock Futures Fall Amid Europe Concerns
4 January 2012
“Long-term adjustment process” used to describe the recovery needed in Europe. New Year’s optimism may be wearing off quickly.
U.S. stock-index futures fell, after yesterday’s rally, as concern grew that European banks may need to raise more capital amid the region’s sovereign debt crisis.
Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM)dropped at least 0.8 percent, leading declines among financial shares.Caterpillar Inc. (CAT) and Pfizer Inc. (PFE) each fell 1 percent, pacing losses among the largest U.S. companies. Read more…
In Europe: Euro zone inflation eases, boosts rate cut expectations
4 January 2012
After yesterday’s upbeat trading session, more good news coming out of Europe. Look out for depressed activity today, given continued bank distress in the region
Euro zone inflation eased from last year’s peaks of 3.0 percent in December, the first sign of a fall in price growth this year that analysts expect will create room for more interest rate cuts to help the weakening economy.
The European Union’s Statistics Office (Eurostat) estimated that consumer prices in the 17 countries sharing the euro rose 2.8 percent year-on-year in December, down from 3.0 percent year-on-year rises in November, October and September.
No detailed break-down of the numbers is available with the Eurostat estimate, but economists said the slower price growth was likely a result of lower energy prices. Read more…
The Weekly Report: The More Things Change…
3 January 2012
2012 is here!
As some of you rose from your food-induced coma from the long Christmas weekend and made a speedy transition into an alcohol-induced frenzy to bring in the New Year, things seemed almost perfect I’m sure. However, as the cloud of nostalgia clears up and opportunities and challenges more clearly present themselves, ask yourself this: how is this year going to be any different from 2011?
Coming towards the end of 2011, the S&P 500 forecasted a year-end market close of 1350. June 2008 was the last time the market had seen that level, just before the crisis truly took hold of the global markets. We didn’t see a 1350 year-end close (actual close of 1257.60 as at December 30, 2011) but this could only be expected. To have attained 1350 would have been to greatly belie the difficulties which characterised 2011, particularly within Europe, such as: Read more…
In T&T: Dookeran: Handling of CLICO earns T&T high rating
30 December 2011
Finance Minister highlights the success of 2011, marks 2012 Â as one which “must be a year of investment both in the private and public sectors.”
The Government’s management of the CLICO collapse and the State’s financial policies have seen a continued positive credit rating from international ratings agency Standard and Poor’s, Finance Minister Winston Dookeran said yesterday.
He was speaking at the post-Cabinet press conference at the Diplomatic Centre, St Ann’s, where he said the local economy is sound and 2012 will be a better year. Read more…
