Day: July 13, 2020

Egypt’s currency performs best among emerging markets despite COVID-19: cabinet
Currencies

Egypt’s currency performs best among emerging markets despite COVID-19: cabinet

CAIRO, July 13 (Xinhua) -- The Egyptian pound demonstrated the best performance among the currencies of emerging markets over the past three years, the Egyptian cabinet said in a statement on Monday. It added that the country's local currency was the least affected by the ongoing COVID-19 pandemic. "Over the past three years, the Egyptian pound has managed to maintain its good performance level to remain the steadiest among emerging market currencies against the U.S. dollar, and the least affected by the repercussions of the coronavirus pandemic," said the statement. The cabinet's media center posted an infographic showing that the exchange rate of the Egyptian pound against the U.S. dollar improved by 10.8 percent from end of June 2017 to end of June 2020. The exchange rate of the U.S...
There’s a bull case on stocks tied to rising jobless ranks
Stock News

There’s a bull case on stocks tied to rising jobless ranks

By Lu Wang You’ve never had to look far during the Covid crisis to find displays of cold-blooded logic among stock investors. The latest centers on the potential benefits to corporate earnings in rising unemployment. It’s a view getting a wider airing -- that job cuts are setting the stage for a swift rebound in profits if the economy reaches a full-blown recovery. That’s a big “if,” of course, as any improvement in profitability would have to offset the demand destroyed by lost jobs. But conceivably, a leaner cost structure will allow companies to pocket more earnings from sales once growth revives. While the theory can sound deaf to the suffering of millions of jobless Americans, there’s precedent, including the last recession, which came before an 11-year bull market. Dehumanization ...
Key Words: Tax us: Abigail Disney among 83 millionaires begging for higher taxes for coronavirus relief
Stock News

Key Words: Tax us: Abigail Disney among 83 millionaires begging for higher taxes for coronavirus relief

Dozens of millionaires are demanding higher taxes — on themselves. Over 80 men and women worth seven figures from the U.S., U.K., Germany, New Zealand, Canada and the Netherlands calling themselves the “Millionaires for Humanity” have signed an open letter asking their governments to “raise taxes on people like us. Immediately. Substantially. Permanently.” “ “So please. Tax us. Tax us. Tax us. It is the right choice. It is the only choice.” ” The signatories include Walt Disney Co. DIS, +0.35% heiress Abigail Disney, Ben & Jerry’s co-founder Jerry Greenfield, former BlackRock managing director Morris Pearl and “Love, Actually” director Richard Curtis. Some, like Disney and Pearl, are also members of the “Patriotic Millionaires” club, a couple hundred ultra-wealthy Americans wh...
Need to Know: Stocks are resilient because investors have been braced for much worse COVID-19 news, says strategist
Stock News

Need to Know: Stocks are resilient because investors have been braced for much worse COVID-19 news, says strategist

What’s going to get in the way of market gains? Clearly not bad news on COVID-19, as investors try to look on the bright side of these uncertain times. Take this chart showing how Arizona cases have started to flatten, by Pantheon Macroeconomics, which expects as that state responded earlier than most to a renewed surge in cases, other hard-hit states will likely flatten in the next couple of weeks: Our call of the day from Thomas Lee, head of Fundstrat Global Advisors, says resilience for stocks in the past week shows that investors have been “bracing for a more dire path regarding COVID-19.” In a note to clients, Lee says “data shows how abruptly hedge funds switched to bearish positioning in June. And coupled with high levels of mutual fund cash, balanced funds have the highest ...
Mercuria scores record profit amid oil market chaos – Financial Times
Commodities

Mercuria scores record profit amid oil market chaos – Financial Times

Mercuria’s profits surged to a record in the first half of the year as the oil market storm sparked by the coronavirus crisis kicked up lucrative opportunities for global energy traders. The privately owned company recorded net income of $425m in the six months to June, up more than $100m from the same period last year, according to people briefed on unaudited figures revealed during a loan refinancing. In the second quarter, when US oil prices turned briefly negative as plummeting global demand threatened to overwhelm storage facilities, the Geneva-based group’s net income hit a record $277m.  The figures underline how chaos in the oil sector can play to the advantage of Mercuria and its competitors, whose trading operations make money from differences in oil and fuel prices aroun...
RIL shares scale new record, as D-Street tries to second-guess what’s in store at July 15 AGM
Stock News

RIL shares scale new record, as D-Street tries to second-guess what’s in store at July 15 AGM

Mumbai: Hopes are running high as the market is building up for Reliance Industries’ (RIL) annual general meeting (AGM) on Wednesday, July 15, after the country’s most-valued firm has had a year of stellar deal announcements since the last AGM. Shares of the energy-to-telecom conglomerate traded at a new record high of Rs 1,932 on Monday. RIL watchers say after a slew of big-bang announcements over the past few months, the AGM may just focus on the path ahead. The company management is widely expected to give more updates on the status of some of the announcements made at the last AGM, and also provide an update on media reports about ongoing talks for a stake buy in Future Group. The oil-to-telecom conglomerate will hold its 43rd AGM through video conferencing (VC) or other audio-visu...
Weyco Group: Cheap For Good Reasons
Stock News

Weyco Group: Cheap For Good Reasons

Source For the past two years, shares in the Weyco Group (WEYS) have been under severe pressure. The stock reached an all-time high of $40 per share by mid-2018, and since then it has traded in a downward channel. Currently, Weyco is trading at cheap valuations. For example, the company is trading at a P/E of 10.3x, P/B of 0.9x, EV/EBITDA of 5.6x, and an EV/Sales of 0.6x. The fact that the company is trading below its book value, indicates the belief from the market that Weyco would not generate returns above its cost of capital. While shares appear to be trading at cheap multiples, we believe Weyco is being fairly valued by the market, based on their business fundamentals. The company has very unpredictable trends within its operating segments and is having trouble in their international...
FX Update – Risk On Ahead of Earnings Season
Forex News

FX Update – Risk On Ahead of Earnings Season

AUDUSD & XAUUSD, H1 Risk-on positioning has seen the Dollar and Yen soften in currency markets. The narrow trade-weighted USDIndex fell below Friday’s low at 96.44 on route to 96.32. Last Thursday’s one-month low is at 96.24. EURUSD lifted to a four-day peak at 1.1336. Cable also lifted above its Friday peak in posting a high at 1.2666. USDJPY posted a sub-20-pip range in the upper 106.00s while the Japanese currency weakened against most other currencies. AUDUSD printed a four-day high at 0.6983. USDCAD ebbed to a 1.3556 low, extending further from Friday’s two-week high at 1.3633. Front-month USOil prices have been holding a narrow range near $40.00. In equity markets, the MSCI Asia-Pacific index printed a five-month peak while the USA500 has risen by more than 0.5%. Early European ...
Stocks, Greed and Exuberance: 5 Things to Watch in Bitcoin This Week
Crypto News

Stocks, Greed and Exuberance: 5 Things to Watch in Bitcoin This Week

Bitcoin (BTC) begins Monday by avoiding another test of $9,000, but what could happen to change the mood or even set off a bull run? Cointelegraph takes a look at five major facts that could influence the BTC price during the coming week.  Stocks under pressure: does “valuation” matter? The macro outlook seemed more or less stable on Monday. Prior to trading, futures for the Dow Jones, S&P 500 and more were modestly up, despite concerns mounting over coronavirus. Specifically, one source quoted by Bloomberg warned on Sunday, the sentiment is one of worry — both about the spread of cases and the United States’ response to protect the economy.  If the Federal Reserve intervenes in equities yet again and adds to its balance sheet, it would increase the sense of an artificial p...
Funds Rushing into Commodities – FX Empire
Commodities

Funds Rushing into Commodities – FX Empire

For a look at all of today’s economic events, check out our economic calendar. Ole Hansen, Head of Commodity Strategy at Saxo Bank. Start trading now This article is provided by Saxo Capital Markets (Australia) Pty. Ltd, part of Saxo Bank Group through RSS feeds on FX Empire What is the Commitments of Traders report? The Commitments of Traders (COT) report is issued by the US Commodity Futures Trading Commission (CFTC) every Friday at 15:30 EST with data from the week ending the previous Tuesday. The report breaks down the open interest across major futures markets from bonds, stock index, currencies and commodities. The ICE Futures Europe Exchange issues a similar report, also on Fridays, covering Brent crude oil and gas oil. In commodities, the open interest is broken into ...