Hear our experts discuss international diversification strategies, changing regulations and best practices for managing cross-border payments and liquidity in these challenging times.
The 6 W’s: Who, what, where, when, why and what of it The RegMed sector is ripe for the tourist trade…investors, most notably day traders hear a piece of news, get excited, and decided to buy. Great for the time being, but remember these same buyers can also be very fickle as their purchasing [...]
P&G brought back its previous CEO Alan George Lafley, to immediately replace its existing CEO Robert McDonald, as the consumer goods giant struggles to turn around its business.
Radical Muslim cleric Omar Bakri Mohammed, whose fiery rhetoric has left him banned from Britain, referred to the street terrorists who hacked a soldier to death in London as "heroes" who carried out God's will.
A recession for the global economy is becoming an increasingly likely scenario.
The Chinese economy, the second-biggest in the world, witnessed a contraction in manufacturing in May. The HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI) registered 49.6 for May, declining from 50.4 in April. (Source: Markit, May 23, 2013.) Any number below 50 represents contraction in the manufacturing sector.
The Chinese economy exports a significant amount of what it produces to the global economy. Contraction in Chinese manufacturing shows exports are falling—the global demand for goods is falling.
Similarly, Germany’s Flash Manufacturing PMI showed continuous contraction in the manufacturing sector. The index stood at 49.0 in May. (Source: Markit, May 23, 2013.) The German economy is important to observe, because it’s the largest economy in the eurozone and an economic slowdown in the nation can send the common currency region into another downward spiral, again affecting the global economy.
Looking at other key indicators, they are pointing to an economic slowdown ahead in the global economy. Consider the copper market. Demand for copper is suggesting activity in the global economy is sluggish, even deteriorating.
Copper prices are down more than 10% since the beginning of 2013, and stockpiles of the brown metal, tracked by the London Metals Exchange (LME), are up a staggering 95% this year! (Source: Bloomberg, May 23, 2013.)
Other industrial metal prices, such as aluminum, lead, nickel, and zinc, are in decline as well.
How can the U.S. economy possibly improve when the global economy is in trouble?
The U.S. is highly affected by any shift in demand in the global economy.
After the financial crisis of 2008, U.S.-based companies were able to show growth because of robust demand in the global economy. Some say the growth in the global economy pulled the U.S. out of recession in 2008.
Now, the economic indicators clearly point to diminishing global demand. Will U.S.-based multinational companies be able to show profit growth under the scenario of global manufacturing contraction? Of course not! (Someone tell stock market investors!)
During the first-quarter earnings reporting season, some of the biggest big-cap companies in the key American stock indices displayed concerns regarding the crisis in the eurozone. I expect more companies to start blaming the economic slowdown in the global economy as they report lower second-quarter corporate earnings.
As I have been writing in these pages, economic growth in the U.S. economy won’t happen by printing more paper money—it’s a short-term fix that creates more long-term problems.
According to data compiled by Bloomberg, 2,267 non-financial constituents of the Russell 3000 index saw their cash holdings increase by 13% to $1.73 trillion in the first quarter of ... Read More
Which RegMed companies are making moves in the 1st hour Signs of life … Shire ADR (SHPG +$1.34) and Reneuron (LON:RENE +$0.25) are the leaders as today’s market opens… …followed by BioTime (NYSEMKT: BTX +$0.07), Fibrocell (NYSEMKT: FCSC +$0.05), NeoStem (NYSE MKT:NBS +$0.02), Stemline (STML +$0.02), Neuralstem (NYSEMKT: CUR +$0.01), BioLife Solutions (OTC: BLFS [...]
PFNI jumped on Thursday for gains of about 20 percent. Notably, the share price moved above the 50-day moving average and a resistance level at 1.35 cents. Technical traders will be looking for volume to increase and the share price to hold the new support level as the chart tries to make a continued move [...]
As I have been writing in these pages, economic growth in the U.S. economy won’t happen by printing more paper money—it’s a short-term fix that creates more long-term problems.
According to data compiled by Bloomberg, 2,267 non-financial constituents of the Russell 3000 index saw their cash holdings increase by 13% to $1.73 trillion in the first quarter of 2013 compared to the same period a year earlier. (Source: Bloomberg, May 23, 2013.)
As the cash hoard continues, business spending declined 21% in the first quarter compared to the last quarter of 2012. This was the biggest decline since the financial crisis of 2008.
To top this off, business executives in the U.S. economy are worried about troubles in the global economy, and they don’t have a very optimistic view on conditions here at home. A CEO Confidence Survey conducted by the Conference Board suggests only 29% of executives believe conditions in their industries have improved in the first quarter; going forward, only 32% expect the U.S. economy to improve in the next six months. (Source: Conference Board, April 25, 2013.)
Looking at all of this, how can you not question the effectiveness of quantitative easing in the U.S. economy? The problem at hand is businesses shying away from spending in the U.S. economy and hoarding cash. To my standards, quantitative easing is failing at making businesses more confident about spending as it was promised.
Dear reader, for economic growth to take place in the U.S. economy, businesses must be willing to spend and make investments; we are seeing the opposite of that. This isn’t rocket science; once businesses start to spend and make investments, we will see recovery in the jobs market and economic growth will eventually follow.
The U.S. economy is at a vulnerable stage. I am paying extra attention to business spending because troubles from outside the U.S. economy are brewing quickly, and as a result, multinational businesses may make further cutbacks on their spending.
Where the Market Stands; Where It’s Headed:
We are putting the finishing touches on “A Dire Warning for Stock Market Investors,” a forecast we will present in video format. Please see your e-mail inbox tomorrow for this presentation. It’s important you watch it to see where the stock market is really headed next.
What He Said:
“As for the stock market, it continues along its merry way oblivious to what is happening to homebuyers’ wealth. (Since 2005 I have been writing about how the real estate bust would be bigger than the boom.) In 1927, the real estate market crashed and the stock market, even back then, carried along its merry way for two more years until it eventually ... Read More
May 24 - Euro zone inflation and unemployment figures next week, with the jobless rate set to hit a fresh record high. Plus, Reuters has a batch of exclusive interviews from the OECD's annual meeting in Paris.
May 24 - Head of the IMF, Christine Lagarde, was questioned again by French prosecutors on Friday over her role in a 285 million euro payment made to a supporter of former president Nicolas Sarkozy, which dates back to 2007 when she was Sarkozy's finance minister. Lagarde risks being placed under formal investigation when the hearing wraps up on Friday, reports Joanna Partridge.
May 24, 2013 (Investorideas.com renewable energy newswire) Boston Scientific Corporation (NYSE:BSX) celebrates Earth Week by inaugurating a 3,900-panel rooftop solar installation atop the company's international distribution center in Quincy, Massachus...
This old adage has been around Wall Street for as long as anyone can remember. What does it mean? Well, it means sell your stocks in May, have a nice summer and come back in September and get long stocks again if the signals are aligned. With that in mind, I analyzed the S&P 500 [...]
Stockholm is in chaos, as hundreds of youths on Friday set fire to nearly a dozen cars, two schools and a police station as violent protests in Sweden's capital city enter their fifth day. Between 300 and 500 in the crowd of protesters circled around the blazing cars, United Press International reported, as nearby youths started to vandalize other vehicles.
Toronto-Dominion reported its fiscal second-quarter 2013 (ended Apr 30) adjusted earnings of C$1.98 per share, which compared favorably with the year-ago earnings of C$1.82.
In volatility we haven’t seen since the Fukushima disaster, Japanese shares dropped by 7% on Thursday before bouncing off of those lows later in the day. Ouch! The ostensible cause? Fed Chairman Ben Bernanke indicated that QE Infinity might—just might—come to end if U.S. economic data improve, and China’s PMI came in lower than expected. [...]
A Ukrainian court rejected a request from gay rights activists to hold their nation's first pride parade through the streets of Kiev, citing concerns about violence. The planned "Equality March," the first of its kind for Kiev, was aimed at raising awareness of what activists characterize as rampant discrimination against the gay community, Agence France-Presse reported.
British authorities on Friday sent fighter jets to escort a plane from Pakistan that's carrying nearly 300 passengers. The Defense Ministry said the Pakistani International Airlines plane was from Lahore and was being diverted from Manchester, Reuters reported. Fox News said the plane was carrying 297 passengers.
We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience. Today he is going to take a look at the te...
Mont Blanc Capital Equity Research issued a research update on May 14, 2013 for AtheroNova Inc. (OTC Markets: AHRO). In the report, the analyst maintained its Buy rating and $2.00 per share price target, while projecting that Phase I clinical trials would begin next month after the company received approval from the Russian Ministry of
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