Citigroup’s (NYSE:C) Dirk Willer said today that increased retail sales aided the Brazilian real in reaching it third gain in the last four days, as retail sales in Brazil rose to their highest levels on record.
Retail sales in Brazil rose by 15.7 percent in March over the year before, surpassing analysts' projections of 14 percent.
The central bank of Brazil raised interest rates in April to combat the expanding economy, increasing benchmark borrowing costs from 8.75 percent to 9.5 percent.
Europe's decision to bailout out the irresponsible, socialist/welfare countries had generated concerns over whether or not investors would ignore assets in Brazil specifically, and Latin America in general.
Willer said, “The market reacted well to retail sales. The pressure point has largely been removed after the European bailout package was announced.”
Showing posts with label Commodity Currency. Show all posts
Showing posts with label Commodity Currency. Show all posts
Wednesday, May 12, 2010
Thursday, April 8, 2010
China Ready to Revalue Renminbi?
China about to revalue renminbi?
Rumors on the street are China is close to announcing they are ready to revalue their currency, although we shouldn't expect much of a move there, and if the rumors are true, it will be a relatively small increase in value in the renminbi.
What is expected is a very quick but low revaluing of the Chinese currency, probably to placate politicians in the U.S., who for the most part, are clueless over it all, but are pressuring the Chinese from a populist position.
Concerns over speculators entering the market will evidently be handled by the Chinese saying the renminbi can just as easily be lowered in value as increased in value, as they want to keep the possible huge influx of investment that could come into China from assuming an inevitable upward climb in value which could hurt the country.
Rumors on the street are China is close to announcing they are ready to revalue their currency, although we shouldn't expect much of a move there, and if the rumors are true, it will be a relatively small increase in value in the renminbi.
What is expected is a very quick but low revaluing of the Chinese currency, probably to placate politicians in the U.S., who for the most part, are clueless over it all, but are pressuring the Chinese from a populist position.
Concerns over speculators entering the market will evidently be handled by the Chinese saying the renminbi can just as easily be lowered in value as increased in value, as they want to keep the possible huge influx of investment that could come into China from assuming an inevitable upward climb in value which could hurt the country.
Wednesday, March 31, 2010
Citigroup's (NYSE) World Government Bond Index and Mexican Securities
Citigroup World Government Bond Index
The market liked the news from Citigroup (NYSE) that Mexican securities will be eligible for inclusion in its World Government Bond Index, resulting in the Mexican peso rising to a 17-month-high.
The Mexican peso has been the top-performing currency of the 16 highest-traded currencies in the world in 2010, and could strengthen more as the inclusion on Citigroup's World Government Bond Index attracts the attention of foreign investors.
Citigroup said Mexico will be added to the World Government Bond Index once the requirements to enter the Index are met for three months in a row, which includes in relationship to Mexican bonds - barriers to entry, size and credit.
At this time Mexico meets all the requirements and is expect to have no problem peforming in that capacity for three months in a row. Mexican debt could enter the Index as early as October 2010. Mexico will be the first Latin American country to be added to Citigroup's World Government Bond Index.
The market liked the news from Citigroup (NYSE) that Mexican securities will be eligible for inclusion in its World Government Bond Index, resulting in the Mexican peso rising to a 17-month-high.
The Mexican peso has been the top-performing currency of the 16 highest-traded currencies in the world in 2010, and could strengthen more as the inclusion on Citigroup's World Government Bond Index attracts the attention of foreign investors.
Citigroup said Mexico will be added to the World Government Bond Index once the requirements to enter the Index are met for three months in a row, which includes in relationship to Mexican bonds - barriers to entry, size and credit.
At this time Mexico meets all the requirements and is expect to have no problem peforming in that capacity for three months in a row. Mexican debt could enter the Index as early as October 2010. Mexico will be the first Latin American country to be added to Citigroup's World Government Bond Index.
Thursday, January 28, 2010
Commodities VaR: Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and JPMorgan Chase (NYSE:JPM) Down 25 Percent from 2008 Highs
Commodity VaR Major Financial Institutions
In the midst of all the Obama proposal for restrictions on proprietary trading for commodities and other securities, it has been found via the data that financial institutions like Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and JPMorgan Chase (NYSE:JPM) have decreased their Value-at-Risk, or VaR, for commodities, by a minimum of 25 percent since their highs during the ongoing commodity surge in 2008.
That data is in reference to numbers crunched in the fourth quarter of 2009.
What VaR deals with is the confidence or willingness for a financial institution to trade in a particular market sector.
Even so, it's interesting that while the risk appetite seems to have declined some in the fourth quarter, commodities and currency investments helped some of the major financial institutions in America perform much better than they would have without those investments.
Volatile times right now will probably keep commodities in check for the short term, but almost every announcement one way or the other seems to push commodity prices in one direction or the other as uncertainty about true economic recovery, interest rates and what China will invest in commodities in 2010 has the commodity market skittish and seemingly all over the place.
Commodity VaR Major Financial Institutions
In the midst of all the Obama proposal for restrictions on proprietary trading for commodities and other securities, it has been found via the data that financial institutions like Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and JPMorgan Chase (NYSE:JPM) have decreased their Value-at-Risk, or VaR, for commodities, by a minimum of 25 percent since their highs during the ongoing commodity surge in 2008.
That data is in reference to numbers crunched in the fourth quarter of 2009.
What VaR deals with is the confidence or willingness for a financial institution to trade in a particular market sector.
Even so, it's interesting that while the risk appetite seems to have declined some in the fourth quarter, commodities and currency investments helped some of the major financial institutions in America perform much better than they would have without those investments.
Volatile times right now will probably keep commodities in check for the short term, but almost every announcement one way or the other seems to push commodity prices in one direction or the other as uncertainty about true economic recovery, interest rates and what China will invest in commodities in 2010 has the commodity market skittish and seemingly all over the place.
Commodity VaR Major Financial Institutions
Monday, January 18, 2010
Commodity Currencies Poised for Growth
Commodity Currencies
Although it's impossible to know the rate of growth and/or strength commodity currencies will grow against the U.S. dollar, it's going to be a good season of time for them as commodity prices are set to increase for some time to come.
When talking of commodity currencies, we're referring to the dollars of Australia, Canada and New Zealand; all countries which rely on commodities as a large part of their economies.
History has shown that for the most part these three currencies move in unison with one another based on how the price of commodities are moving, and so all of them should be a good bet over the next couple of years to strengthen against the U.S. dollar, which continues to collapse in value.
China's seeming resumption of economic domestic growth is a good sign for these three currencies as well, as it implies China is buying up commodities again in preparation for more growth, assuming it's for that purpose and not to protect its own exports and currency primarily, although it definitely entails that.
Commodity Currencies
Although it's impossible to know the rate of growth and/or strength commodity currencies will grow against the U.S. dollar, it's going to be a good season of time for them as commodity prices are set to increase for some time to come.
When talking of commodity currencies, we're referring to the dollars of Australia, Canada and New Zealand; all countries which rely on commodities as a large part of their economies.
History has shown that for the most part these three currencies move in unison with one another based on how the price of commodities are moving, and so all of them should be a good bet over the next couple of years to strengthen against the U.S. dollar, which continues to collapse in value.
China's seeming resumption of economic domestic growth is a good sign for these three currencies as well, as it implies China is buying up commodities again in preparation for more growth, assuming it's for that purpose and not to protect its own exports and currency primarily, although it definitely entails that.
Commodity Currencies
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