In February of 1932, troubles with both gold and currency threatened to send the U.S. economy, already ravaged by the Depression, spiraling into even worse fiscal waters. As the Depression rolled along, many people stockpiled supplies of gold and cash, which created gaping shortages. Moreover, foreign governments were yanking their support for the gold standard: towards the end of 1931, the British withdrew completely from the standard. After surveying the situation with Secretary of the Treasury Ogden Mills, President Herbert Hoover declared that the "gold situation" was "critical" and worried that the U.S. faced the "immediate danger of not being able to meet foreign withdrawals which were going on at the rate of $100 million a week." Hoping to ease the situation, Hoover enlisted the aid of Representative Carter Glass, as well as a few other key legislators, who helped hammer out the Glass-Steagall Act. Passed by Congress on this day in 1932, Glass-Steagall expanded the powers of the Federal Reserve Board, thus extending credit, as well as enabling the agency to "release" some of the government's gold to business as a response to the flood of foreign withdrawals.
-Source: History.com
Saturday, May 31, 2008
Friday, May 30, 2008
Jim Cramer’s Wind Index - Stocks to Watch
Cramer proposed an informal Wind ETF based on stocks that make up the various sectors participating in the wind business…companies that make the blades, towers, infrastructure. Cramer didn’t necessarily recommend buying all of these stocks, as he was simply creating an index for what he believes is a long-term growth play. He does love Trinity and Otter Tail. Here are the stocks:
1. Trinity Industries (TRN)
2. Otter Tail (OTTR)
3. Woodward Governor (WGOV)
4. MasTec (MTZ)
5. Ameron (AMN)
6. Kaydon (KDN)
7. Thomas & Betts (TNB)
8. Broadwind Energy (BWEN.ob)
9. Vestas (VWSYF.pk)
10. Clipper Wind Power (CRPWF.pk)
1. Trinity Industries (TRN)
2. Otter Tail (OTTR)
3. Woodward Governor (WGOV)
4. MasTec (MTZ)
5. Ameron (AMN)
6. Kaydon (KDN)
7. Thomas & Betts (TNB)
8. Broadwind Energy (BWEN.ob)
9. Vestas (VWSYF.pk)
10. Clipper Wind Power (CRPWF.pk)
Thursday, May 29, 2008
S&P/Case-Shiller Home Price Index
S&P/Case-Shiller Home Price Index FuturesThese are the first comprehensive financial tools that make it possible to trade U.S. housing values in a centralized marketplace. They extend to the $21 trillion housing industry the same tools for risk management and investment that previous CME Group innovations have brought to agriculture and finance. These products also provide a way to:
- Hedge values in down markets
- Take advantage of profit opportunities stemming from price fluctuations in all types of markets
- Hedge values in down markets
- Take advantage of profit opportunities stemming from price fluctuations in all types of markets
Published May 27, 2008, the S&P/Case-Shiller Index for March 2008 indicates a 15.3% drop in home prices from March 2007 to March 2008 for a composite of ten major U.S. cities, with five of these cities experiencing a decrease of 20% or more.
Wednesday, May 28, 2008
Kindle is currently back in stock at Amazon!!
Watch this video explaining Kindle's main features:
- Revolutionary electronic-paper display provides a sharp, high-resolution screen that looks and reads like real paper.
- Simple to use: no computer, no cables, no syncing.
- Wireless connectivity enables you to shop the Kindle Store directly from your - Kindle—whether you’re in the back of a taxi, at the airport, or in bed.
- Buy a book and it is auto-delivered wirelessly in less than one minute.
- More than 120,000 books available, including more than 98 of 112 current New York Times® Best Sellers.
- New York Times® Best Sellers and New Releases $9.99, unless marked otherwise. - Free book samples. Download and read first chapters for free before you decide to buy.
- Top U.S. newspapers including The New York Times, Wall Street Journal, and Washington Post; top magazines including TIME, Atlantic Monthly, and Forbes—all auto-delivered wirelessly.
- Top international newspapers from France, Germany, and Ireland; Le Monde, Frankfurter Allgemeine, and The Irish Times—all auto-delivered wirelessly.
- More than 300 top blogs from the worlds of business, technology, sports, entertainment, and politics, including BoingBoing, Slashdot, TechCrunch, ESPN's Bill Simmons, The Onion, Michelle Malkin, and The Huffington Post—all updated wirelessly throughout the day.
- Lighter and thinner than a typical paperback; weighs only 10.3 ounces.
- Holds over 200 titles.
- Revolutionary electronic-paper display provides a sharp, high-resolution screen that looks and reads like real paper.
- Simple to use: no computer, no cables, no syncing.
- Wireless connectivity enables you to shop the Kindle Store directly from your - Kindle—whether you’re in the back of a taxi, at the airport, or in bed.
- Buy a book and it is auto-delivered wirelessly in less than one minute.
- More than 120,000 books available, including more than 98 of 112 current New York Times® Best Sellers.
- New York Times® Best Sellers and New Releases $9.99, unless marked otherwise. - Free book samples. Download and read first chapters for free before you decide to buy.
- Top U.S. newspapers including The New York Times, Wall Street Journal, and Washington Post; top magazines including TIME, Atlantic Monthly, and Forbes—all auto-delivered wirelessly.
- Top international newspapers from France, Germany, and Ireland; Le Monde, Frankfurter Allgemeine, and The Irish Times—all auto-delivered wirelessly.
- More than 300 top blogs from the worlds of business, technology, sports, entertainment, and politics, including BoingBoing, Slashdot, TechCrunch, ESPN's Bill Simmons, The Onion, Michelle Malkin, and The Huffington Post—all updated wirelessly throughout the day.
- Lighter and thinner than a typical paperback; weighs only 10.3 ounces.
- Holds over 200 titles.
This Day in Wall Street History 1794 : Rail Baron is Born
This day in 1794 marks the birth of rail baron and arch-capitalist, Cornelius Vanderbilt. Born to a poor family in Staten Island, Vanderbilt left school at age eleven and headed to New York's waterfront to begin what proved to be a long and fruitful career. In 1810, Vanderbilt began his first entrepreneurial venture with the launch of a small ferry business. Though Vanderbilt's ferry enterprise soon began to thrive, he sold his schooners in 1818, opting instead to learn the shipping business under the tutelage of captain Thomas Gibbons. Though still young, Vanderbilt was a savvy and fiercely competitive entrepreneur, and by 1829 he had purchased his first steamer. Thanks in large part to his aggressive fares and lavishly decorated steamers, Vanderbilt eventually came to rule the shipping industry. By 1862, the nation's burgeoning rail network beckoned and, utilizing his handsome capital resources, Vanderbilt built an empire that included the New York and Harlem Railroad, as well as the New York Central Railroad. Towards the end of his life, Vanderbilt tempered his competitive zeal with altruism -- he donated $1 million to Central University (later renamed Vanderbilt University) and masterminded the construction of New York's Grand Central Terminal. Cornelius Vanderbilt passed away in New York City during in early 1877.
source: www.history.com
source: www.history.com
Tuesday, May 27, 2008
Capital gains: taxing times
In the US, obtaining long-term (over one year) capital gains treatment is a key objective for investors from a tax perspective. The maximum rate applicable to such gains is 15 per cent, compared to 35 per cent for ordinary income, plus any applicable state income taxes, writes Jim Smulkowski, a partner at law firm Katten Muchin Rosenman.
Recognising capital gain from the sale of non-real estate and non-operating assets is even more attractive to passive foreign investors, who won't pay US tax. The favourable 15 per cent rate isn't available to corporations, which pay the same rate on capital gain and ordinary income, nor in general to pension funds and other tax-exempt investors, which pay no tax on their investment income.
Past change
The big news over the last couple of years has been that the 15 per cent rate has applied to most dividends received by US investors. They could recapitalise their investments and distribute the proceeds during the holding period. This wasn't previously the case, as dividends were normally taxed at the same rate as ordinary income. Typically, an investor would hold the shares for a couple of years and then sell.
A timely end
The maximum 15 per cent rate for long-term capital gain and dividends is scheduled to expire after 2010. This is also the only year in which the US estate tax rate (equivalent to the UK's inheritance tax) is cut to zero for those who can time their demise accordingly. The estates of any belated souls still breathing at midnight will again be subject to a 55 per cent rate starting in 2011. As it stands, the long-term capital gains rate will return to 20 per cent after 2010 and the dividend rate will be again taxed at ordinary income rates, which are also scheduled to concurrently increase to 39.6 per cent.
An end in sight
The end of the favourable long-term capital and dividend rates could be nearer after the US elections. If those inclined to raise taxes prevail, another issue will be whether "carry", payable to managers of PE, hedge and other funds, should be taxed at ordinary income rates. Carry is currently taxed according to proportion and character of the underlying investment income, which may be long-term capital gain. The proposals floating around Washington DC would impose tax at ordinary income rates on carry.
Recognising capital gain from the sale of non-real estate and non-operating assets is even more attractive to passive foreign investors, who won't pay US tax. The favourable 15 per cent rate isn't available to corporations, which pay the same rate on capital gain and ordinary income, nor in general to pension funds and other tax-exempt investors, which pay no tax on their investment income.
Past change
The big news over the last couple of years has been that the 15 per cent rate has applied to most dividends received by US investors. They could recapitalise their investments and distribute the proceeds during the holding period. This wasn't previously the case, as dividends were normally taxed at the same rate as ordinary income. Typically, an investor would hold the shares for a couple of years and then sell.
A timely end
The maximum 15 per cent rate for long-term capital gain and dividends is scheduled to expire after 2010. This is also the only year in which the US estate tax rate (equivalent to the UK's inheritance tax) is cut to zero for those who can time their demise accordingly. The estates of any belated souls still breathing at midnight will again be subject to a 55 per cent rate starting in 2011. As it stands, the long-term capital gains rate will return to 20 per cent after 2010 and the dividend rate will be again taxed at ordinary income rates, which are also scheduled to concurrently increase to 39.6 per cent.
An end in sight
The end of the favourable long-term capital and dividend rates could be nearer after the US elections. If those inclined to raise taxes prevail, another issue will be whether "carry", payable to managers of PE, hedge and other funds, should be taxed at ordinary income rates. Carry is currently taxed according to proportion and character of the underlying investment income, which may be long-term capital gain. The proposals floating around Washington DC would impose tax at ordinary income rates on carry.
Sunday, May 25, 2008
Curse Of The Silver Coins
Traders have long spoken in hushed tones about the silver coin-betting that goes on behind closed doors (including melting the coins to deliver against straight silver futures contracts, which is illegal). Here’s why the U.S. government has decided to take a page from its food-rationing days of World War II and the gasoline-conservation era of the 1970s to impose quotas on yet another precious commodity: 2008 dollar coins known as silver eagles.
The coins, each containing about an ounce of silver, have become so popular among investors seeking alternatives to stocks and real estate that the U.S. Mint can't make them fast enough. In March, the mint stopped taking orders for the bullion coins. Late last month, it began limiting how many coins its 13 authorized buyers world-wide are allowed to purchase.
"This came out of nowhere," says Mark Oliari, owner of Coins 'N Things Inc. in Bridgewater, Mass., one of the biggest buyers of silver eagles. With customers demanding twice as many as they did last year, Mr. Oliari would like to buy 500,000 a week. But the mint will sell him only around 100,000.
The coins have a face value of $1. But the mint sells them for the going price of silver, plus a small premium, to a handful of wholesalers, brokerage companies, precious-metals firms, coin dealers and banks. The dealers mark the coins up a bit more and sell them to the public. Currently, the coins are fetching about $19 apiece, with some sellers seeking more than $20.
For Coins 'N Things alone, the shortage is costing hundreds of thousands of dollars in lost sales of silver eagles. The firm sells about $1 billion worth of precious metal every year, including silver, gold and platinum coins. Mr. Oliari, a 50-year-old numismatist who has been in the business since 1973, sniffs: "You can't print what I want to say about the mint."
The mint, a bureau of the U.S. Treasury, has offered little explanation beyond a memo last month to its dealers. "The unprecedented demand for American Eagle Silver Bullion Coins necessitates our allocating these coins on a weekly basis until we are able to meet demand," the mint wrote. A spokesman declined to elaborate.
The coins, each containing about an ounce of silver, have become so popular among investors seeking alternatives to stocks and real estate that the U.S. Mint can't make them fast enough. In March, the mint stopped taking orders for the bullion coins. Late last month, it began limiting how many coins its 13 authorized buyers world-wide are allowed to purchase.
"This came out of nowhere," says Mark Oliari, owner of Coins 'N Things Inc. in Bridgewater, Mass., one of the biggest buyers of silver eagles. With customers demanding twice as many as they did last year, Mr. Oliari would like to buy 500,000 a week. But the mint will sell him only around 100,000.
The coins have a face value of $1. But the mint sells them for the going price of silver, plus a small premium, to a handful of wholesalers, brokerage companies, precious-metals firms, coin dealers and banks. The dealers mark the coins up a bit more and sell them to the public. Currently, the coins are fetching about $19 apiece, with some sellers seeking more than $20.
For Coins 'N Things alone, the shortage is costing hundreds of thousands of dollars in lost sales of silver eagles. The firm sells about $1 billion worth of precious metal every year, including silver, gold and platinum coins. Mr. Oliari, a 50-year-old numismatist who has been in the business since 1973, sniffs: "You can't print what I want to say about the mint."
The mint, a bureau of the U.S. Treasury, has offered little explanation beyond a memo last month to its dealers. "The unprecedented demand for American Eagle Silver Bullion Coins necessitates our allocating these coins on a weekly basis until we are able to meet demand," the mint wrote. A spokesman declined to elaborate.
Friday, May 23, 2008
NYSE Trading Tanks
Just as the news hits today that the London Stock Exchange is sending up distress signals, we hear that trading at the Big Board, likewise, has plummeted to its lowest level since 2001, thanks to alternative venues capturing market its share. More about what’s going on with these erstwhile "pillars" of the global marketplace – and where all the liquidity is heading.
Trading on the New York Stock Exchange fell 26 percent this quarter to the lowest since 2001 as alternative venues captured market share and the total volume of U.S. equities climbed.
The shares changing hands each day on the 216-year-old exchange fell to an average 1.27 billion in the second quarter from 1.57 billion a year ago, according to NYSE data compiled by Bloomberg. Total trading rose 19 percent from a year ago to an average of 6.84 billion shares a day, as companies such as Bats Trading Inc. and Direct Edge ECN LLC won more of the business, Bloomberg data show.
The NYSE's share of the total value traded slipped to 52 percent in the first three months from more than 70 percent in 1990, according to data from the World Federation of Exchanges. Analysts who depend on volume to help forecast the market's direction are losing one of their tools.
Trading on the New York Stock Exchange fell 26 percent this quarter to the lowest since 2001 as alternative venues captured market share and the total volume of U.S. equities climbed.
The shares changing hands each day on the 216-year-old exchange fell to an average 1.27 billion in the second quarter from 1.57 billion a year ago, according to NYSE data compiled by Bloomberg. Total trading rose 19 percent from a year ago to an average of 6.84 billion shares a day, as companies such as Bats Trading Inc. and Direct Edge ECN LLC won more of the business, Bloomberg data show.
The NYSE's share of the total value traded slipped to 52 percent in the first three months from more than 70 percent in 1990, according to data from the World Federation of Exchanges. Analysts who depend on volume to help forecast the market's direction are losing one of their tools.
Thursday, May 22, 2008
Currency RTFs : fast-growing economies
With the U.S. dollar showing no signs of strengthening and remaining under pressure to weaken from further U.S. interest rate cuts, now is a good time for you to become familiar with these WisdomTree Dreyfus offerings. Three of the funds are aimed at riding currency appreciation in the fast-growing economies of Brazil, China and India, respectively. The fourth is a bet on the Euro, while the fifth is a play on Japan's Yen.
WisdomTree Dreyfus Chinese Yuan Fund CYB
WisdomTree Dreyfus Indian Rupee Fund ICN
WisdomTree Dreyfus Brazilian Real Fund BZF
WisdomTree Dreyfus Euro Fund EU
WisdomTree Dreyfus Japanese Yen Fund JYF
WisdomTree Dreyfus Chinese Yuan Fund CYB
WisdomTree Dreyfus Indian Rupee Fund ICN
WisdomTree Dreyfus Brazilian Real Fund BZF
WisdomTree Dreyfus Euro Fund EU
WisdomTree Dreyfus Japanese Yen Fund JYF
Wednesday, May 21, 2008
Technical Analysis - Major Gap Patterns
Continuation Gaps - Also called runaway gaps as they occur during strong price advances.
Breakaway Gaps - Occur after strong price patterns, ie; stock patterns trading sideways suddenly gaps away from that pattern.
Breakaway Gaps - Occur after strong price patterns, ie; stock patterns trading sideways suddenly gaps away from that pattern.
Common Gaps - Also called trading gaps. As the name implies, these are uneventful gaps in price and generally fill very quickly.
Exhaustion Gaps - Occur in the direction of the prevailing trend, normally signifying final buying or selling before the trend changes.
Exhaustion Gaps - Occur in the direction of the prevailing trend, normally signifying final buying or selling before the trend changes.
Tuesday, May 20, 2008
Contango
Contango is a term used in the futures market to describe an upward sloping forward curve (as in the normal yield curve). One says that such a forward curve is "in contango" (or sometimes "contangoed").
Formally, it is the situation where, and the amount by which, the price of a commodity for future delivery is higher than the spot price, or a far future delivery price higher than a nearer future delivery.
The opposite market condition to contango is known as backwardation.
Occurrence
A contango is normal for a non-perishable commodity which has a cost of carry . Such costs include warehousing fees and interest forgone on money tied up, less income from leasing out the commodity if possible (e.g. gold). However, markets for non-perishable goods may also exist in a state of contango.
The contango should not exceed the cost of carry, because producers and consumers can compare the futures contract price against the spot price plus storage, and choose the better one. Arbitrageurs can sell one and buy the other for a risk-free profit too.
In 2005 and 2006 the crude oil market was in contango. This was a result of the perception of a future supply shortage. Many hedge funds took advantage of the arbitrage opportunity by buying present oil, selling a future contract and then simply storing the oil for future delivery. It was estimated that perhaps a $10-20 per barrel premium was added to spot price of oil as a result of this. The contango ended when global oil storage capacity became exhausted.[1]
For perishable commodities, price differences between near and far delivery are not a contango. Different delivery dates are like different commodities in this case, since fresh eggs today are not fresh in 6 months time, or 90-day treasury bills will mature, etc.
Formally, it is the situation where, and the amount by which, the price of a commodity for future delivery is higher than the spot price, or a far future delivery price higher than a nearer future delivery.
The opposite market condition to contango is known as backwardation.
Occurrence
A contango is normal for a non-perishable commodity which has a cost of carry . Such costs include warehousing fees and interest forgone on money tied up, less income from leasing out the commodity if possible (e.g. gold). However, markets for non-perishable goods may also exist in a state of contango.
The contango should not exceed the cost of carry, because producers and consumers can compare the futures contract price against the spot price plus storage, and choose the better one. Arbitrageurs can sell one and buy the other for a risk-free profit too.
In 2005 and 2006 the crude oil market was in contango. This was a result of the perception of a future supply shortage. Many hedge funds took advantage of the arbitrage opportunity by buying present oil, selling a future contract and then simply storing the oil for future delivery. It was estimated that perhaps a $10-20 per barrel premium was added to spot price of oil as a result of this. The contango ended when global oil storage capacity became exhausted.[1]
For perishable commodities, price differences between near and far delivery are not a contango. Different delivery dates are like different commodities in this case, since fresh eggs today are not fresh in 6 months time, or 90-day treasury bills will mature, etc.
Monday, May 19, 2008
China : Looking at the numbers
Here's an interesting compendium of factoids on China that was published in Britain's Independent newspaper.
30,000: The expected number of Chinese MBA graduates in 2008. The number in 1998: 0
5.7 million: Students graduated from Chinese universities in 2007 (compared with 270,000 in 1977)
30: Number of nuclear power plants being built in China
500: The number of coal-fired power plants China plans to build in the next decade
10 million: The estimated number of Chinese people who have no electricity
97: New airports to be built in the next 12 years, bringing the total number to 244 by 2020
540 million: Number of mobile phone users in China, with an increase of 44 million in the past six months
180: The number of foreign press correspondents arrested or harassed in 2007
67: The percentage of journalists who replied "no" when asked in a survey by the Foreign Correspondents Club of China if they believed Beijing had kept its promise to give foreign media "complete freedom of reporting" in the run-up to the Olympics. Only 8.6 per cent said "yes"
33: The number of Chinese journalists thought to be held in prisons in 2008
95: The estimated percentage of DVDs sold in China that are fake. Uncensored foreign films are widely available from 50p
20: The approximate number of foreign films passed by Chinese censors each year for screening in cinemas. Banned films have included 'Ben Hur' (for its depiction of religion), 'Brokeback Mountain' (for its homosexuality) and the 'Borat' film (for its depiction of, among other things, incest).
Passed films are often subject to further editing. Examples include the deletion of scenes showing hanging laundry in Shanghai in 'Mission: Impossible III' and the removal of footage containing Chow Yun-Fat that 'vilifies and humiliates the Chinese' in 'Pirates of the Caribbean: At World's End'
160: Cities in China with populations that exceed a million. In the USA there are nine; in the UK just two
80: Percentage of the world's zips produced in factories in the Zhejiang Province city of Qiaotou (amounting to 124,000 miles of zip each year, or enough to stretch half way to the moon). Qiaotou also produces 60 per cent of the world's buttons (15 billion a year), while nearby Datang makes a third of the world's socks. As many as 80 per cent of the world's toys are made in China, which boasts more than 10,000 toy factories
21 million: The number of Chinese-made toys recalled last year by the US toy company Mattel
0: Miles of motorway in 1988
30,000: Miles of motorway today
6.3 million: The number of passenger cars registered in 2007 (compared with 2.3 million in 2004). More than 1,000 new private cars hit the roads every day in Beijing alone
68: The number of crimes thought to be punishable by death in China, including non-violent offences such as tax fraud, embezzlement and the taking of bribes
350 million: The number of Chinese people who smoke (a third of the world’s smokers). Around a million people a year are thought to die from smoking-related diseases
240bn yuan: (£17.3bn)* The estimated amount earned by the Chinese government in tobacco taxes in 2005
1.3 billion: China’s population. The country accounts for one in five people in the world.
400 million: The estimated number of births prevented by China’s one-child policy, introduced in 1979
22: The number of suicides per 100,000 people, about 50 per cent higher than the global average. Suicide is the fifth most common cause of death in China, and the first among people aged between 20 and 35
700,000: The number of people living with HIV or Aids in China. The UN has warned China it could have 10 million cases by 2010 unless action is taken
45 billion: Estimated number of chopsticks China produces every year, the majority of them disposable. In 2006, Beijing introduced a five per cent tax on disposable wooden chopsticks in an attempt to help save the country’s forests
30: The number of different animal penises on the menu at Guolizhuang, Beijing’s ‘penis emporium’. A yak’s costs about £15, while a tiger’s (which must be pre-ordered) will set you back £3,000
* A British pound is worth about $2 U.S.
Read the complete story at http://www.independent.co.uk/news/world/asia/the-dragon-awakens-china-how-did-it-happen-823627.html
30,000: The expected number of Chinese MBA graduates in 2008. The number in 1998: 0
5.7 million: Students graduated from Chinese universities in 2007 (compared with 270,000 in 1977)
30: Number of nuclear power plants being built in China
500: The number of coal-fired power plants China plans to build in the next decade
10 million: The estimated number of Chinese people who have no electricity
97: New airports to be built in the next 12 years, bringing the total number to 244 by 2020
540 million: Number of mobile phone users in China, with an increase of 44 million in the past six months
180: The number of foreign press correspondents arrested or harassed in 2007
67: The percentage of journalists who replied "no" when asked in a survey by the Foreign Correspondents Club of China if they believed Beijing had kept its promise to give foreign media "complete freedom of reporting" in the run-up to the Olympics. Only 8.6 per cent said "yes"
33: The number of Chinese journalists thought to be held in prisons in 2008
95: The estimated percentage of DVDs sold in China that are fake. Uncensored foreign films are widely available from 50p
20: The approximate number of foreign films passed by Chinese censors each year for screening in cinemas. Banned films have included 'Ben Hur' (for its depiction of religion), 'Brokeback Mountain' (for its homosexuality) and the 'Borat' film (for its depiction of, among other things, incest).
Passed films are often subject to further editing. Examples include the deletion of scenes showing hanging laundry in Shanghai in 'Mission: Impossible III' and the removal of footage containing Chow Yun-Fat that 'vilifies and humiliates the Chinese' in 'Pirates of the Caribbean: At World's End'
160: Cities in China with populations that exceed a million. In the USA there are nine; in the UK just two
80: Percentage of the world's zips produced in factories in the Zhejiang Province city of Qiaotou (amounting to 124,000 miles of zip each year, or enough to stretch half way to the moon). Qiaotou also produces 60 per cent of the world's buttons (15 billion a year), while nearby Datang makes a third of the world's socks. As many as 80 per cent of the world's toys are made in China, which boasts more than 10,000 toy factories
21 million: The number of Chinese-made toys recalled last year by the US toy company Mattel
0: Miles of motorway in 1988
30,000: Miles of motorway today
6.3 million: The number of passenger cars registered in 2007 (compared with 2.3 million in 2004). More than 1,000 new private cars hit the roads every day in Beijing alone
68: The number of crimes thought to be punishable by death in China, including non-violent offences such as tax fraud, embezzlement and the taking of bribes
350 million: The number of Chinese people who smoke (a third of the world’s smokers). Around a million people a year are thought to die from smoking-related diseases
240bn yuan: (£17.3bn)* The estimated amount earned by the Chinese government in tobacco taxes in 2005
1.3 billion: China’s population. The country accounts for one in five people in the world.
400 million: The estimated number of births prevented by China’s one-child policy, introduced in 1979
22: The number of suicides per 100,000 people, about 50 per cent higher than the global average. Suicide is the fifth most common cause of death in China, and the first among people aged between 20 and 35
700,000: The number of people living with HIV or Aids in China. The UN has warned China it could have 10 million cases by 2010 unless action is taken
45 billion: Estimated number of chopsticks China produces every year, the majority of them disposable. In 2006, Beijing introduced a five per cent tax on disposable wooden chopsticks in an attempt to help save the country’s forests
30: The number of different animal penises on the menu at Guolizhuang, Beijing’s ‘penis emporium’. A yak’s costs about £15, while a tiger’s (which must be pre-ordered) will set you back £3,000
* A British pound is worth about $2 U.S.
Read the complete story at http://www.independent.co.uk/news/world/asia/the-dragon-awakens-china-how-did-it-happen-823627.html
Saturday, May 17, 2008
Warsaw Stock Exchange (WSE) has signed a co=operation agreement with Neonet XG Market Gateway
15 April 2008
The Warsaw Stock Exchange (WSE) and Neonet have agreed that the WSE will use Neonet XG Market Gateway as an access solution (Independent Software Vendor) to communicate with its members.
The development allows WSE members to trade on the exchange using their own membership through Neonet XG's technical infrastructure.
By using Neonet XG Market Gateway as an access solution (Independent Software Vendor), the Warsaw Stock Exchange allows its members to leverage Neonet's high-speed technology, exchange connectivity and infrastructure, without necessarily using Neonet's brokerage services.
"We believe that choice is essential in the financial markets. By connecting to Neonet XG Market Gateway, the Warsaw Stock Exchange provides choice for its members," says Simon Nathanson CEO Neonet. "For those that would rather concentrate on their core skills - their trading activity - rather than on building, managing and maintaining their connectivity to the exchange, Neonet XG offers the solution."
Neonet Execution Services enable clients to trade efficiently on more than 30 markets across Asia, Europe and the North America* via Neonet's membership. Neonet XG offers a suite of trading software solutions, including XG Market Gateway, Market Data, Broker Connect and Trader.
Neonet XG Market Gateway is today connected to more than 30 markets in Europe, which now includes the Warsaw Stock Exchange.
The Warsaw Stock Exchange currently has 46 Exchange Members, including 19 Remote Members.
Friday, May 16, 2008
Background of Forex Trading
The forex market was first established in 1971 when many of the world’s major currencies moved towards floating exchange rates. Forex transactions are conducted between two counter parties on the OTC (Over-The-Counter) market and these parties agree to trade via an electronic network or via the telephone. Forex trading can be conducted 24-hours a day and five days a week therefore providing a very flexible schedule for forex investors. If you are interested in learning how to trade forex, you must first obtain a forex trading education in order to be successful.
Basics of Forex Trading
The first bit of information you should know before you start trading forex is that it is also known as foreign exchange trading. Forex is the immediate exchange of one country’s currency for another and requires impeccable timing in order to gain profit. Each investor will also learn about market conditions so that they are able interpret market scenarios that are favorable to making a profit. Another basic part of a forex trading education is to learn how to manage and open a trading account. You will learn that you should start out with a demo account where you can practice trading without real money. Once you are comfortable with the forex trading platform that you choose to use, you can then open a live account and start trading with real money.
Forex Trading Styles
Your forex trading education will also teach you about two different trading styles that each investor can use when trading currency. These styles are referred to as fundamental and technical analysis. Fundamental analysis requires the investors to analyze key economic data, political conditions and news and government reports. Forex traders who use fundamental analysis believe that currency exchange rates are affected by key elements such as inflation, interest rates, employment statistics, and market sentiment, to name a few. The investor who opts to use technical analysis tools to trade forex, makes his or her decisions based on charting tools and quantitative trading models. The goal of investors who use technical analysis is to study historical data in order to predict future market movements. Part of their trading education is to learn how to utilize charts in order to make these predictions.
Basics of Forex Trading
The first bit of information you should know before you start trading forex is that it is also known as foreign exchange trading. Forex is the immediate exchange of one country’s currency for another and requires impeccable timing in order to gain profit. Each investor will also learn about market conditions so that they are able interpret market scenarios that are favorable to making a profit. Another basic part of a forex trading education is to learn how to manage and open a trading account. You will learn that you should start out with a demo account where you can practice trading without real money. Once you are comfortable with the forex trading platform that you choose to use, you can then open a live account and start trading with real money.
Forex Trading Styles
Your forex trading education will also teach you about two different trading styles that each investor can use when trading currency. These styles are referred to as fundamental and technical analysis. Fundamental analysis requires the investors to analyze key economic data, political conditions and news and government reports. Forex traders who use fundamental analysis believe that currency exchange rates are affected by key elements such as inflation, interest rates, employment statistics, and market sentiment, to name a few. The investor who opts to use technical analysis tools to trade forex, makes his or her decisions based on charting tools and quantitative trading models. The goal of investors who use technical analysis is to study historical data in order to predict future market movements. Part of their trading education is to learn how to utilize charts in order to make these predictions.
Wednesday, May 14, 2008
Brazil's Embraer to Build Jet Factory in Florida
Embraer, the world's third largest aircraft manufacturer, announces it will build a "state of the art" manufacturing and sales facility at Melbourne International Airport in Florida.
The major components of the aircraft will be shipped in from Brazil, potentially through Port Canaveral, while other parts made in the United States will be transported to Melbourne via truck and train.
In Melbourne, the company will perform final assembly and prepare the aircraft for delivery. It will be the Brazilian-based company's first manufacturing facility in the U.S. The proposal would also allow Melbourne and Brevard County to continue to build its growing aviation niche, as the space shuttle program at NASA ends and creates a significant employment void.
Friday, May 9, 2008
CME rival ELX nears launch
ELX Liquidity Exchange, the startup that plans to challenge CME Group Inc.’s dominance in financial futures, is in final negotiations with Chicago-based Clearing Corp. for the critical job of guaranteeing its contracts, three people familiar with the talks say.
The impending clearinghouse agreement is the first concrete sign after months of silence that ELX, whose owners include Wall Street banks such as Citigroup Inc. and Chicago hedge fund Citadel Investment Group, is nearing a launch. ELX may officially announce the deal as early as next week, the sources say.
ELX is expected to take additional steps, including naming a CEO and filing an application with the Commodity Futures Trading Commission, the nation’s futures regulator, in the next few weeks, they say, adding that trading is expected to begin in the third or fourth quarter.
Essential to any futures exchange, a clearinghouse is responsible for settling trading accounts at the end of each day, financially backing trades and maintaining margin balances. ELX is choosing Clearing Corp. over three rivals that included Chicago-based Options Clearing Corp.
Now comes the hard part for ELX, formed in December with plans to offer futures based on U.S. Treasuries. To date, at least four exchanges have tried to take on CME or its recently acquired former rival, the Chicago Board of Trade, by offering identical, competing contracts. None have succeeded. CME currently accounts for more than 90% of U.S. futures trading.
Satish Nandapurkar, the former CEO of one-time CBOT rival Eurex US, gives the new venture “significantly less than a 50-50 chance” of competing in Treasury futures. In February 2004, Eurex US started Treasury futures trading but never managed to win much business, in part because the CBOT slashed its fees just before the new market’s launch.
ELX’s 12 owners — which also include Merrill Lynch & Co., three Chicago-based trading firms and electronic bond-broker BGC Partners Inc., formerly known as eSpeed Inc. — believe they’ll fare better than prior attempts.
“One important difference is we have an equity stake in the venture,” says Misha Malyshev, a managing director at Citadel and global head of its high-frequency trading desk. “We believe this is the right mix of players and they are incentivized to create a successful, long-term enterprise.”
Traders may also migrate to ELX because they watched the CBOT raise its fees once the threat from Eurex dissipated. “People realize there needs to be a legitimate and lasting competitive alternative,” says Faraz Javaid, Citadel’s director of new business development.
CME CEO Craig Donohue says he takes the potential competition “very seriously” and declines further comment. An ELX spokesman said no ELX directors were available to comment. A Clearing Corp. spokesman declines to comment.
ELX directors are in active talks with at least two CEO candidates and have chosen one of their own to be the market’s president; appointments will be announced in the next few weeks, two people involved with ELX said.
An agreement with ELX may provide a boost for Clearing Corp., which has about 40 employees at its 227 W. Monroe St. offices. Formerly known as Board of Trade Clearing Corp., its business has shrunk after the Board of Trade switched its clearing business to the CME, which runs its own clearinghouse. The CME bought the CBOT for $12 billion in July.
Read more at http://www.chicagobusiness.com/cgi-bin/news.pl?id=29367
The impending clearinghouse agreement is the first concrete sign after months of silence that ELX, whose owners include Wall Street banks such as Citigroup Inc. and Chicago hedge fund Citadel Investment Group, is nearing a launch. ELX may officially announce the deal as early as next week, the sources say.
ELX is expected to take additional steps, including naming a CEO and filing an application with the Commodity Futures Trading Commission, the nation’s futures regulator, in the next few weeks, they say, adding that trading is expected to begin in the third or fourth quarter.
Essential to any futures exchange, a clearinghouse is responsible for settling trading accounts at the end of each day, financially backing trades and maintaining margin balances. ELX is choosing Clearing Corp. over three rivals that included Chicago-based Options Clearing Corp.
Now comes the hard part for ELX, formed in December with plans to offer futures based on U.S. Treasuries. To date, at least four exchanges have tried to take on CME or its recently acquired former rival, the Chicago Board of Trade, by offering identical, competing contracts. None have succeeded. CME currently accounts for more than 90% of U.S. futures trading.
Satish Nandapurkar, the former CEO of one-time CBOT rival Eurex US, gives the new venture “significantly less than a 50-50 chance” of competing in Treasury futures. In February 2004, Eurex US started Treasury futures trading but never managed to win much business, in part because the CBOT slashed its fees just before the new market’s launch.
ELX’s 12 owners — which also include Merrill Lynch & Co., three Chicago-based trading firms and electronic bond-broker BGC Partners Inc., formerly known as eSpeed Inc. — believe they’ll fare better than prior attempts.
“One important difference is we have an equity stake in the venture,” says Misha Malyshev, a managing director at Citadel and global head of its high-frequency trading desk. “We believe this is the right mix of players and they are incentivized to create a successful, long-term enterprise.”
Traders may also migrate to ELX because they watched the CBOT raise its fees once the threat from Eurex dissipated. “People realize there needs to be a legitimate and lasting competitive alternative,” says Faraz Javaid, Citadel’s director of new business development.
CME CEO Craig Donohue says he takes the potential competition “very seriously” and declines further comment. An ELX spokesman said no ELX directors were available to comment. A Clearing Corp. spokesman declines to comment.
ELX directors are in active talks with at least two CEO candidates and have chosen one of their own to be the market’s president; appointments will be announced in the next few weeks, two people involved with ELX said.
An agreement with ELX may provide a boost for Clearing Corp., which has about 40 employees at its 227 W. Monroe St. offices. Formerly known as Board of Trade Clearing Corp., its business has shrunk after the Board of Trade switched its clearing business to the CME, which runs its own clearinghouse. The CME bought the CBOT for $12 billion in July.
Read more at http://www.chicagobusiness.com/cgi-bin/news.pl?id=29367
Friday, May 2, 2008
'Emerging’ Vs ‘Frontier’
Investing in one of these markets is now so lucrative, you simply cannot afford to treat it as a mere option anymore. Investing in the other is fraught with tricks, traps and potholes. Plus, like Botox, nobody really knows its long-term effects. But if you know what to look for, you just might make a mint. Let the following be your primer.
Investing in emerging markets isn't optional anymore. Globalization means that countries once thought of as marginal are central to any smart investment plan.
What's still optional -- for now, at least -- are markets characterized as ``frontier.'' Frontier markets are young and thinly traded, with small numbers of stocks, poor regulation, unreliable financial reports and low levels of foreign ownership. In other words, mystery markets. But, like travel, they broaden the mind.
Who's on the frontier? Ukraine, Cyprus, Estonia, Kuwait, the United Arab Emirates, Ghana, Nigeria, Ivory Coast, Ecuador, Jamaica, Kazakhstan, Vietnam and perhaps two dozen more. Investment managers group them under acronyms: MENA, for Middle East North Africa; EMEA, for Europe (specifically, eastern Europe), Middle East and Africa.
Several indexes track these new markets. The S&P Frontier Markets Index covers 24 countries, including seven African states but none of the oil states in the Middle East. For the oils, check a smaller S&P index called Select Frontiers Total Return Index.
MSCI Barra launched a 19-country index last November, dominated by the five oil states whose markets are open to foreigners (that excludes Saudi Arabia). Merrill Lynch added its own 17-country index in March, the Merrill Lynch Frontier Index, also dominated by oil.
Each frontier country has a slightly different story with the common investment themes.
There's the commodities boom -- oil, of course, but also metals and agriculture. The consumer explosion -- rising urban middle classes snapping up cell phones, cars, television and appliances. Infrastructure -- the International Monetary Fund has forgiven much of Africa's debt, leaving these governments with surpluses to invest in electricity, telecommunications and roads. Finance -- with lenders prospering. Construction -- offices and apartment buildings, airports and shipping facilities. The MENA area's national bird is the construction crane.
Asset managers are pitching these markets as ``uncorrelated'' with those of the more developed world, meaning that stock prices there run on different tracks. They may rise when the more familiar markets are going down. In truth, however, we haven't had enough experience with frontier markets to declare them a potential cushion for bad times.
Read more at http://www.bloomberg.com/apps/news?pid=20601212&sid=a4sibrM7bph4&refer=home
Investing in emerging markets isn't optional anymore. Globalization means that countries once thought of as marginal are central to any smart investment plan.
What's still optional -- for now, at least -- are markets characterized as ``frontier.'' Frontier markets are young and thinly traded, with small numbers of stocks, poor regulation, unreliable financial reports and low levels of foreign ownership. In other words, mystery markets. But, like travel, they broaden the mind.
Who's on the frontier? Ukraine, Cyprus, Estonia, Kuwait, the United Arab Emirates, Ghana, Nigeria, Ivory Coast, Ecuador, Jamaica, Kazakhstan, Vietnam and perhaps two dozen more. Investment managers group them under acronyms: MENA, for Middle East North Africa; EMEA, for Europe (specifically, eastern Europe), Middle East and Africa.
Several indexes track these new markets. The S&P Frontier Markets Index covers 24 countries, including seven African states but none of the oil states in the Middle East. For the oils, check a smaller S&P index called Select Frontiers Total Return Index.
MSCI Barra launched a 19-country index last November, dominated by the five oil states whose markets are open to foreigners (that excludes Saudi Arabia). Merrill Lynch added its own 17-country index in March, the Merrill Lynch Frontier Index, also dominated by oil.
Each frontier country has a slightly different story with the common investment themes.
There's the commodities boom -- oil, of course, but also metals and agriculture. The consumer explosion -- rising urban middle classes snapping up cell phones, cars, television and appliances. Infrastructure -- the International Monetary Fund has forgiven much of Africa's debt, leaving these governments with surpluses to invest in electricity, telecommunications and roads. Finance -- with lenders prospering. Construction -- offices and apartment buildings, airports and shipping facilities. The MENA area's national bird is the construction crane.
Asset managers are pitching these markets as ``uncorrelated'' with those of the more developed world, meaning that stock prices there run on different tracks. They may rise when the more familiar markets are going down. In truth, however, we haven't had enough experience with frontier markets to declare them a potential cushion for bad times.
Read more at http://www.bloomberg.com/apps/news?pid=20601212&sid=a4sibrM7bph4&refer=home
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