May 12, 2005
The Tokyo Stock Exchange announced on Thursday that it will delist Kanebo, a household goods manufacturer, on June 13 because of serious and deliberate misstatements of financial information. This move has been expected since accusations that the company had inflated sales figures first made the news last October. This is not the first time a company has been delisted by the Tokyo exchange for financial improprieties. Seibu Railway ...
Tokyo announces Kanebo delisting
by Brian TurnerThe Tokyo Stock Exchange announced on Thursday that it will delist Kanebo, a household goods manufacturer, on June 13 because of serious and deliberate misstatements of financial information. This move has been expected since accusations that the company had inflated sales figures first made the news last October. This is not the first time a company has been delisted by the Tokyo exchange for financial improprieties. Seibu Railway ...
Credit agencies raise Ukranian rating
by Brian TurnerThe credit rating of Ukraine was raised on Wednesday by Standard & Poor’s, bringing S&P’s ratings in line with that of Fitch and a notch better than Moody’s rating. Now, all three rating agencies assign a stable outlook to the country. The S&P’s rating for foreign currency rose one notch, from B+ to BB- and its local currency rating was raised to BB from B+. Ukraine’s economy ...
Asia mixed while Europe markets make good
by Brian TurnerAsian stock exchanges were mixed on Thursday, with advances in Taipei and Singapore but declines in Japan and South Korea. In Europe, in contrast, markets were generally higher. In London, the FTSE 100 closed up 0.4 percent at 4,893.2, while the FTSE 250 rose 1 percent to 6,807.2 on a volume of 3.1 billion shares. Over in Europe, the FTSE Eurofirst 300 ended 0.6 percent higher, at ...
Economy news mixes bonds
by Brian TurnerIn the eurozone, news of a stronger-than-expected growth in the German economy sent prices on government bonds down and yields up on Thursday. The 2-year Schatz saw yields rise 2.2 basis points to 2.191 percent while the 10-year Bund yield of 3.316 percent was little changed. Germany’s economy grew by 1 percent in the first quarter and the economy of the eurozone as a whole grew by 0.5 ...
May 11, 2005
Investors in Japan reacted negatively to several reports that were released after the markets closed on Tuesday to send the market down on Wednesday. The biggest loser was toiletries and textiles maker Kanebo, which has been suffering the fallout of an accounting scandal. On reports that the Tokyo Stock Exchange will likely delist it, Kanebo fell 15.3 percent to Ą533. Softbank, an Internet company, reported that it has had ...
Kanebo continues value loss in delisting suggestion
by Brian TurnerInvestors in Japan reacted negatively to several reports that were released after the markets closed on Tuesday to send the market down on Wednesday. The biggest loser was toiletries and textiles maker Kanebo, which has been suffering the fallout of an accounting scandal. On reports that the Tokyo Stock Exchange will likely delist it, Kanebo fell 15.3 percent to Ą533. Softbank, an Internet company, reported that it has had ...
Bond swap for Dominican Republic
by Brian TurnerOn Wednesday the Dominican Republic made an exchange worth $1.1 billion on two bond issues in order to get some relief of its debt. The president of the Dominican Republic, Leonel Fernandez, pronounced the deal a success although the government still has to reach settlement with some bondholders who did not agree to the exchange. The bondholders who did agree will get $456 million in 9.5 percent amortizing ...
May 10, 2005
The downgrade of General Motors and Ford to junk status last week might, according to some analysts, result in the alteration of how banks classify existing debt. Typically, separate trading desks handle high grade and high-yield debt. While it is true that the two desks generally work together more closely now than they have done in the past, there is still a fairly clear demarcation between the two ...
Junk status debt to be hotly traded
by Brian TurnerThe downgrade of General Motors and Ford to junk status last week might, according to some analysts, result in the alteration of how banks classify existing debt. Typically, separate trading desks handle high grade and high-yield debt. While it is true that the two desks generally work together more closely now than they have done in the past, there is still a fairly clear demarcation between the two ...
South Korean Bank report touts efficiency against foreign investment in banking sector
by Brian TurnerA report from the Institute for Monetary and Economic Research, a think-tank sponsored by the Bank of Korea, South Korea’s central bank, has found that private equity funds have done little for the nation’s banking sector even as they have contributed to the country’s financial stability. Due to this finding, the Institute has advised the South Korean government to only sell its stake in South Korean banks to other ...
Wall Street oil dampens European equities
by Brian TurnerEuropean equity markets were generally lower in by mid-afternoon on Tuesday even though performance in the transport and constructions sectors both were doing well as higher oil prices and a slow start on Wall Street both took a toll. The FTSE Eurofirst 300 fell 0.7 percent to 1,074.37, while Xetra Dax declined 0.8 percent to 4,256.43 and the CAC-40 was down 0.5 percent to 3,998.48. P&O Nedlloyd, a ...
Globo Comunicacoes Participators debt restructuring completes
by Brian TurnerThe largest media company in Brazil is nearly done with the process of a corporate bond restructuring that is the largest in that South American country’s history. Globo Comunicacoes Participators (Globopar) began on Monday an auction process that will refinance its $1.3 billion debt. Globopar has been negotiating with it’s Brazilian and worldwide creditors for two years to restructure the debt. Holders of the company’s bond issues ...
British Retail Consortium news hits UK bonds
by Brian TurnerThe British Retail Consortium announced Tuesday that like-for-like sales in the UK were down 4.7 percent for the year in April, the largest fall since the Consortium started to report sales data in 1995. Even though part of the retreat could be blamed on the early appearance of Easter this year that put holiday buying in a March rather than April this news, coupled with unfavorable manufacturing data released ...
May 9, 2005
Barclay’s Bank of the UK will buy a majority share of Absa, South Africa’s largest retail bank. The move comes after months of negotiations. The South African bank has been active in seeking the business of the fully 50 percent of South Africans who do not have bank accounts. It also has operations in Angola, Tanzania, Mozambique, Zimbabwe, and Namibia, and is in negotiations to acquire a stake ...
Barclays acquisition of Absa
by Brian TurnerBarclay’s Bank of the UK will buy a majority share of Absa, South Africa’s largest retail bank. The move comes after months of negotiations. The South African bank has been active in seeking the business of the fully 50 percent of South Africans who do not have bank accounts. It also has operations in Angola, Tanzania, Mozambique, Zimbabwe, and Namibia, and is in negotiations to acquire a stake ...
Bank of England holds rates, bonds rise
by Brian TurnerGilt prices in the UK went higher on Monday after a Bank of England decision to let its main interest rate remain at 4.75 percent for the ninth month in a row and after manufacturing figures for March were weaker than they were expected to be. The report showed that manufacturing output fell by 1.6 percent in March compared with the previous month. This was the third consecutive ...
Japan airlines mixes Asian equities
by Brian TurnerThe Asian markets saw mixed fortunes on Monday. The Kospi index in Seoul was down 0.6 percent, to 935.2, mostly over concerns that North Korea would carry out threatened nuclear testing. Additionally, Hyundai Motors was fell 0.9 percent to Won52,500 and Kia Motors declined by 1.5 percent to Won12,750. The Taiex index in Taiwan closed even at 4,966.85. In India, the Sensex index in Mumbai rose ...
May 6, 2005
Two factors were instrumental in activity in U.S. bond markets on Friday. Thursday’s downgrade of General Motors’ and Ford's credit ratings by Standard and Poor’s, followed by a stronger than expected U.S. jobs report on Friday combined to send bond prices down and yields up in both the government and corporate bond markets. By early Friday, yields on 2-year U.S. government bonds had risen by 15 basis points to ...
US bond market moved by GM downgrade
by Brian TurnerTwo factors were instrumental in activity in U.S. bond markets on Friday. Thursday’s downgrade of General Motors’ and Ford's credit ratings by Standard and Poor’s, followed by a stronger than expected U.S. jobs report on Friday combined to send bond prices down and yields up in both the government and corporate bond markets. By early Friday, yields on 2-year U.S. government bonds had risen by 15 basis points to ...
European equities strengthened on US investments
by Brian TurnerThe European equities market benefited from good news coming from the United States, ending the week on a positive note. The FTSE Eurofirst 300 was up 2.5 percent on the week to 1,086.5. 0.5 percent of the rise came on Friday. Events in the U.S. automobile sector also helped the European carmaking sector. Kirk Kerkorian offered cash for 28 million shares of General Motors and both ...
May 5, 2005
OneChicago, an electronic exchange created in 2002 by the Chicago Board of Trade, Chicago Mercantile Exchange, and Chicago Board Options Exchange, is bringing the practice of trading in single-stock futures into its own. It has reported that its business has seen an 81 percent jump over last year at the same time. In the beginning, OneChicago was not fulfilling its creator’s expectations but its chief executive says that ...
Single-stick trading takes Chicago
by Brian TurnerOneChicago, an electronic exchange created in 2002 by the Chicago Board of Trade, Chicago Mercantile Exchange, and Chicago Board Options Exchange, is bringing the practice of trading in single-stock futures into its own. It has reported that its business has seen an 81 percent jump over last year at the same time. In the beginning, OneChicago was not fulfilling its creator’s expectations but its chief executive says that ...
Bonds calmer after treasury announcement
by Brian TurnerThe excitement caused by the announcement Wednesday that the U.S. Treasury might again issue 30-year bonds calmed down on Thursday, allowing prices on European and UK long-term government bonds to begin to recover. Wednesday’s announcement had sent prices on the long-term bonds falling and yields rising. Meanwhile, the general election in the UK seemed to be having very little effect on gilt prices. In afternoon trading in ...
May 4, 2005
In Europe on Wednesday, shares in the banking and automobile manufacturing sectors did very well, helping the FTSE Eurofirst 300 to a winning day. Banks did well on positive first quarter reports. Anglo Irish Bank rose 5.6 percent to €9.48. Europe’s ninth-largest bank, Credit Suisse, gained 2 percent to SFr51.30, while Germany’s second-largest bank, HVB Group, advanced 1 percent to €18.65. Bank Austria, Austria’s largest bank, ...
FTSE Eurofirst 300 strong in banking
by Brian TurnerIn Europe on Wednesday, shares in the banking and automobile manufacturing sectors did very well, helping the FTSE Eurofirst 300 to a winning day. Banks did well on positive first quarter reports. Anglo Irish Bank rose 5.6 percent to €9.48. Europe’s ninth-largest bank, Credit Suisse, gained 2 percent to SFr51.30, while Germany’s second-largest bank, HVB Group, advanced 1 percent to €18.65. Bank Austria, Austria’s largest bank, ...
Crude oil futures gain on early losses
by Brian TurnerWeekly U.S. Department of Energy oil inventory data sent futures prices down and then up on Wednesday. June delivery IPE Brent fell to $49.66 per barrel but was back up to $51.37 per barrel by late afternoon in London. In New York, June Nymex WTI dropped to $48.80 per barrel before rebounding to $50.70 per barrel by early afternoon in New York. Crude oil and gasoline inventories ...