IDS World Markets Thurs 26th July 07
350 replies to this topic
Posted 25 July 2007 - 10:22 PM
Guess that was a consolidation at the lows yesterday, as it's another swoop down today. All Ords -0.7% and the only green sector is Energy, +0.3%. Varying losses among the reds but Materials takes the honours for the biggest drop, -1.4%.
Miners doing it tough: BHP -1.2%, RIO -2.1% with the golds not quite so badly off, Newcrest -1.2% and Newmont -0.6%.
Oils have finally perked up after their recent slide: Woodside +0.4%, Santos +0.7% and Caltex +1.7%.
Posted 25 July 2007 - 10:25 PM
New Zealand Raises Key Interest Rate to Record 8.25%
July 26 (Bloomberg) -- New Zealand's central bank raised its benchmark interest rate to a record 8.25 percent and said borrowing costs may be high enough to contain inflation, triggering a decline in the nation's currency.
Bollard for the first time signaled he may be done raising interest rates, suggesting New Zealand's dollar will slide from a 22-year high that has forced exporters to close factories and fire workers as profits drop. Bollard has raised rates to curb domestic demand, which is stoking inflation toward the top of the 1 percent- to-3 percent range he targets.
Posted 26 July 2007 - 01:58 AM
First Basis Capital, now this one...
Hedge Fund Firm Absolute Capital Suspends Withdrawals
July 26 (Bloomberg) -- Absolute Capital Group Ltd., an Australian hedge fund that invests in collateralized debt obligations, suspended withdrawals from two of its funds after forecasting losses amid a rout in U.S. subprime mortgages.
The firm froze its Yield Strategies Fund and Yield Strategies Fund NZD, which together have about A$200 million ($177 million) under management, Chief Investment Officer Bill Entwistle said in an interview today. The Sydney-based company is 50 percent owned by ABN Amro Holding NV's Australian unit
Australia's hedge fund industry has been rocked by losses at Basis Capital, which has said the value of its Yield Alpha Fund may plunge more than 50 percent if its assets are sold at distressed prices. Sydney-based Mariner Bridge Investments Ltd. on July 20 wrote down the value of its U.S. residential mortgage-backed securities.
Australian hedge fund managers directly controlled A$41 billion in assets as of July last year, the most in Asia, according to AsiaHedge. Assets almost tripled in the two years to June 2006 as money from compulsory pension savings, tax breaks, a new state-owned investment fund and takeovers boosted fund inflows, according to government data.
Absolute Capital said it won't process any requests for withdrawals until Oct. 25, estimating it may take three months for enough buyers to return to the CDO market.
Posted 26 July 2007 - 02:37 AM
Boy this market is confusing...... I've decided we might get a bounce to play....and IF the NYSE A/D is 2 to 1 positive.... THEN I'll throw long....otherwise I'll hold on to my shorts..........
Shorty.....are you with me? I'm going in.....
"It's tough to make predictions, especially about the future" Yogi Berra
"If you believe people are rational beings, you will go through life frustrated and confused" Scott Adams
"Don't dig the dialog of denial"
"No, I don't know that atheists should be considered as citizens, nor should they be considered as patriots. This is one nation under God." George W. Bush
Posted 26 July 2007 - 03:33 AM
Ooh, quite a bearish one today. All Ords sold off all the way into close, finishing -1.2%. Materials continued to lead the way, -2.1% followed by Healthcare -1.9%. All sectors closed red with Energy down the least, -0.1%.
A solid plummet on the two big miners: BHP -2% and RIO -3.4%. In the golds, Newcrest finished -1.9% and Newmont -0.2%.
Oils were dragged down: Woodside -1% and Santos +0.4%.
Asia looking gloomy: Sth Korea -2%, Taiwan -1.8%, Nikkers -0.9%. China managed a smidge of green, +0.5%.
Over to UK/Europe:
Posted 26 July 2007 - 03:39 AM
China's Debt Rating Upgraded by Moody's to A1
July 26 (Bloomberg) -- China received its highest-ever debt rating from Moody's Investors Service, buoyed by $1.3 trillion of foreign reserves that protect the economy from external shocks.
The long-term foreign-currency rating rose one level to A1, the fifth-highest ranking, Moody's said in a statement today. The ratings company assessed China's local-currency debt for the first time, assigning the same level.
Hong Kong's rating rose to Aa2 from Aa3 after government finances improved, the ratings company said in a separate statement today.
``The Hong Kong government has almost no debt and large and growing fiscal reserves, equivalent to about one quarter of GDP,'' said Moody's Vice President Steven Hess.
Posted 26 July 2007 - 06:55 AM
An Apple a day may not keep the BEAR DOCtor away..
But a lot of news coming along with end of month?
Posted 26 July 2007 - 07:15 AM
So last year German business manager's expectations topped out, but business assessment and climate kept going up, now the all three are topping out.
This has been highly correlated with market tops
Posted 26 July 2007 - 07:22 AM
Ooops, looks like the Top 1% aren't buying enough European Luxury cars:
"Rolls-Royce Profit Falls 51% on Weakening U.S. Dollar"
What about airplane engines?
"Aircraft engines and other aerospace components are primarily priced in dollars. When Rolls-Royce converts dollar revenue to British pounds, sales figures can be lowered. The dollar will drop ``between 7 and 8 cents'' in 2007 compared with 2006, Rolls-Royce said. The U.S. dollar has fallen 4.6 percent against the pound since the start of the year."
Guesstimate again girlfriend
Posted 26 July 2007 - 07:47 AM
Is that Correct...
FUTURES DOWN BIGGGG!!
I just Donged ES at 1507...looking for 4-6 points.
Stop the Madness
Posted 26 July 2007 - 07:55 AM
I'm out at 1511...i'll take the 4 points.
Stop the Madness
Posted 26 July 2007 - 08:04 AM
the bond market is going right down the tubes - spreads are 20-30bps wider today and any bid is getting creamed...this is the worst i have ever seen including 91, 98 and 02.
the street is crumbling under inventory, traders are getting called back from vaca and guys are getting tapped on the shoulder (not to get down but fired).
Posted 26 July 2007 - 08:10 AM
Wow, sounds like the shit really hit the fan. Or madame wu is holding her butt cheeks tight and not buying till US concedes something?
If that's the case in plain vanilla bonds, I wonder how the highly untraded CDO bagholders are sweating it out. Maybe the managers are leaving on their own before things get marked to market.
Thanks for the insight on the bond trading desks.
The Daily Stool - Stock Market Message Board