Friday, 22 January 2010
QROPS ADVICE: Investment News: Crude at a LOW
Crude oil dropped to its lowest this year in New York on Tuesday, amid speculation global stockpiles remain more than adequate and as a stronger dollar dampened hedging demand. The Organization of Petroleum Exporting Countries won't need to raise oil production this year as its output of natural gas liquids increases, the International Energy Agency's deputy executive director said yesterday.
QROPS ADVICE: Investment News: PESO IS WINNING
Mexico's peso is winning over the world's largest foreign-exchange traders as the economic recovery in the neighbouring U.S. boosts the value of one of the cheapest currencies in emerging markets. "The Mexican peso offers the most potential upside in Latin America," said Brett Diment, who manages USD4.6 billion at Aberdeen Asset Management Ltd. in London. "It's massively undervalued. The U.S. economy recovery prospect clearly remains positive, which means Mexico's exports to the U.S. will increase in value."
QROPS ADVICE: LONG-TERM DEMAND RISES
International demand for long-term U.S. stocks, bonds and financial assets rose in November as private investors purchased a record amount of government securities, a Treasury Department report showed. Net buying of long-term equities, notes and bonds totalled USD126.8 billion for the month, compared with net buying of USD19.3 billion in October, the Treasury said. Including short-term securities such as stock swaps, foreigners purchased a net USD26.6 billion in November, compared with net selling of USD25.4 billion the previous month.
QROPS ADVICE: Investment News: STANLEY "Stick with the BRIC"
Morgan Stanley said investors should "stick with the BRICs" and add to their holdings in China and Russia as faster economic growth will allow emerging-market stocks to catch up to developed-market gains this year. "Stick with the BRICs," strategists led by Jonathan Garner wrote in a report, referring to Brazil, Russia, India and China. "BRIC tends to outperform in non-recession years such as the 2003 to 2007 period, whilst it has underperformed in recession years."
QROPS Advice: Investment News: The U.K. inflation rate jumped in December
The U.K. inflation rate jumped in December by the most since records began in 1997, posing a challenge to policy makers as they consider when to start raising interest rates. Consumer prices climbed 2.9 percent from a year earlier, 1 percentage point more than in November, the Office for National Statistics said on Tuesday. The rate rose after oil prices jumped and 2008 cuts in sales tax and retail prices weren't repeated. The pound extended gains after the release. The rise caused the pound rise to a four-month high against the euro, and two-year gilt yields jumped the most since November.
Main QROPS Advice website is http://www.qrops-advisers.com QROPS Advisers available on 0044 (0) 1664 444625
Main QROPS Advice website is http://www.qrops-advisers.com QROPS Advisers available on 0044 (0) 1664 444625
QROPS Advice: "China and other developing Asian lead global recovery."
The head of the IMF said China and other developing Asian economies are leading a global recovery that is faster and stronger than expected, but warned that money rushing into emerging markets could lead to asset bubbles. Dominique Strauss-Kahn, the managing director of the International Monetary Fund said "The forecasts we're going to release in a couple of days will show that this recovery is going faster and stronger than we expected several months ago."
Conversely, an Asian Development Bank Economist suggests that China has no need to raise interest rates because there isn't any clear sign of an asset bubble, "There's no compelling reason for an interest-rate hike yet," Donghyun Park, a senior economist at the ADB, said. "There are some signs of overheating in the property markets. But there's no clear, concrete, specific evidence of a bubble."
Main QROPS Advice website is http://www.qrops-advisers.com QROPS Advisers available on 0044 (0) 1664 444625
Conversely, an Asian Development Bank Economist suggests that China has no need to raise interest rates because there isn't any clear sign of an asset bubble, "There's no compelling reason for an interest-rate hike yet," Donghyun Park, a senior economist at the ADB, said. "There are some signs of overheating in the property markets. But there's no clear, concrete, specific evidence of a bubble."
Main QROPS Advice website is http://www.qrops-advisers.com QROPS Advisers available on 0044 (0) 1664 444625
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