Published : Thu, 03 Feb 2011 11:46
By : 1888pressrelease.com
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(1888PressRelease) February 03, 2011 - The big fall in the euro in recent months is clearly having a significant impact on the performance of the
euro-zone economy.
Shaw Capital Management, Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Factory output expanded at a record pace in April, helped by investment spending associated with the export effort, and overseas demand for European capital equipment, and the trend appears to be continuing. The major beneficiary has been Germany, but other northern member countries are also involved.
However the situation is much less encouraging in Greece, Spain, and Portugal, because they are less competitive in export markets, and are being forced to introduce austerity measures to reduce their fiscal deficits.
Domestic demand across the entire euro-zone remains weak, and so, despite the export performance of some member countries, it seems unlikely that the overall growth rate for the zone this year will reach 2%. The European Central Bank remains reasonably optimistic about prospects; but fortunately it has not moved towards an "exit strategy" that might involve reversing the measures that were introduced to counter the recession.
Short-term interest rates have been left unchanged and close to zero, the programme to provide unlimited three-month loans to the banking system is continuing, and the bank is also still intervening in the markets to buy the bonds of weaker member countries that had been sold heavily because of fears about debt defaults. The bank is therefore continuing to provide support for the system; but it is not really doing enough to offset the concerns about the debt crisis.
Greece remains in the eye of the storm; but there have been increasing concerns about the situation in Spain; and the situation has been made worse by the latest warning from the Fitch Ratings agency that it may take further massive asset purchases by the European Central Bank to prevent the sovereign debt crisis in the area escalating out of control.
Shaw Capital Management August 2010: Financial Markets Focusing Europe - There are fears that Spain will need to follow Greece in requesting help from other member countries and the IMF to enable it to avoid a default, and that Portugal, and perhaps even Italy, may also need to be rescued.
The pressures on the euro will therefore be intense; and whilst there may well be further support from the Swiss National Bank and others, the future of the single currency system clearly remains very uncertain. The latest modest rally in the euro must therefore be treated with great care.
Sterling has recovered from the weakness that developed in May, and is ending the month higher. The economic background in the UK has not provided any real support, and the Bank of England is clearly intending to maintain short-term interest rates at very low levels; but there has been some movement of funds out of the euro into sterling, and the new coalition government in the UK has introduced measures to reduce the massive fiscal deficit that have been well received in the markets and led to an improvement in sentiment.
There is clearly a risk that these latest measures in the Budget will depress the level of activity still further, and fail to solve the fiscal problems; but for the moment it seems that the new government is being given the benefit of the doubt.
The evidence on the performance of the economy ahead of the Budget announcement was still pointing to a very slow recovery in activity.
The manufacturing sector is reasonably buoyant, with exports expanding rapidly; and retail sales also increased more quickly than expected.
But unemployment rose again to 2.47 million, and the latest survey from the CBI indicated that the value and volume of business in the services sector fell, and that further weakness was expected in the second half of the year.
However the situation has obviously been changed significantly by the latest Budget measures, and the latest estimates from the newly-formed Office for Budget Responsibility are that growth will now only be 1.2% this year, rising to 2.3% next year, and improving slightly in succeeding years.
The Bank of England has welcomed the decision by the new government to introduce measures to address the problems created by the huge fiscal deficit. The governor, Mervyn King, argued recently that they would "eliminate some of the downside risks…and are desirable to remove the risk of an adverse market reaction."
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Showing posts with label shaw capital management equities. Show all posts
Showing posts with label shaw capital management equities. Show all posts
Wednesday, July 20, 2011
Latest World Headlines: Shaw Capital Management | FSA issues warning on structured products
http://www.ft.com/cms/s/2/5a31eedc-9077-11e0-9227-00144feab49a.html#axzz1PFEmURnD
Please respect FT.com’s ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ft.com to buy additional rights or use this link to reference the article - http://www.ft.com/cms/s/2/5a31eedc-9077-11e0-9227-00144feab49a.html#ixzz1PMzk5OWB
By Alice Ross
Published: June 6 2011 22:59 | Last updated: June 6 2011 22:59
Investment products described as “guaranteed”, “protected” or “secure” may have to carry an explanation stating exactly what these terms mean, in the latest warning from the Financial Services Authority that financial companies are not properly advertising risk to consumers.
So-called structured products, which offer people exposure to the stock market with some level of protection, were being promoted “without any clear and adequate justification for the descriptions used”, the regulator said in a quarterly consultation paper on Monday. It has proposed introducing guidelines that would force financial services companies to explain the use of terms such as “guaranteed” in advertisements or fact sheets.
EDITOR’S CHOICE
Analysis: Finance – Shadow boxes – Feb-02
Tony Jackson: Cat-and-mouse game – Jan-30
Lex: Financial Crisis Inquiry Commission – Jan-27
Goldman president warns on bank rules – Jan-26
Reforms need to nurture capital markets – Jan-26
Insight: Road map that opens up shadow banking – Nov-18
Structured products are increasingly being marketed by banks and wealth managers to consumers who are tempted by the headline rates on offer at a time when returns on cash are still close to zero.
Typical products will lock up capital for five years and offer investors a proportion of any return on the stock market over that period. But many “guaranteed” products in fact only protect capital if the stock market does not fall below a certain level over a certain period of time.
The regulator has had the investment products on its radar after a review in 2009 of products backed by Lehman Brothers found that sales advice had been either unclear or misleading in two-thirds of cases.
But sales of structured products have shot up since the credit crunch, with a 48 per cent rise in new sales in 2009 compared with 2008, according to the website Structuredretailproducts.com.
The UK retail market was worth £52bn at the end of 2010, up from £46bn the previous year. The FSA said it had taken steps to introduce the new rules after evidence that its current guidelines, introduced in 2001, were not working.
“We already have a rule that says firms have to be fair, clear and not misleading – but in a lot of cases we’re finding that’s not working,” the FSA said.
Structured products have been behind some of the largest fines imposed by the regulator in recent months, including a £1.4m fine on Norwich & Peterborough Building Society in April for mis-selling the investments and a £700,000 fine on RSM Tenon last year.
Some independent financial advisers have also faced individual fines for failing to explain the risks of the products properly. A consultation on the proposal is open to August 6.
The FSA expects to publish the results of a separate investigation into how structured products are sold and marketed to consumers later this year, which is expected to clamp down on sales practices further.
Copyright The Financial Times Limited 2011. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web.
Please respect FT.com’s ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ft.com to buy additional rights or use this link to reference the article - http://www.ft.com/cms/s/2/5a31eedc-9077-11e0-9227-00144feab49a.html#ixzz1PMzk5OWB
By Alice Ross
Published: June 6 2011 22:59 | Last updated: June 6 2011 22:59
Investment products described as “guaranteed”, “protected” or “secure” may have to carry an explanation stating exactly what these terms mean, in the latest warning from the Financial Services Authority that financial companies are not properly advertising risk to consumers.
So-called structured products, which offer people exposure to the stock market with some level of protection, were being promoted “without any clear and adequate justification for the descriptions used”, the regulator said in a quarterly consultation paper on Monday. It has proposed introducing guidelines that would force financial services companies to explain the use of terms such as “guaranteed” in advertisements or fact sheets.
EDITOR’S CHOICE
Analysis: Finance – Shadow boxes – Feb-02
Tony Jackson: Cat-and-mouse game – Jan-30
Lex: Financial Crisis Inquiry Commission – Jan-27
Goldman president warns on bank rules – Jan-26
Reforms need to nurture capital markets – Jan-26
Insight: Road map that opens up shadow banking – Nov-18
Structured products are increasingly being marketed by banks and wealth managers to consumers who are tempted by the headline rates on offer at a time when returns on cash are still close to zero.
Typical products will lock up capital for five years and offer investors a proportion of any return on the stock market over that period. But many “guaranteed” products in fact only protect capital if the stock market does not fall below a certain level over a certain period of time.
The regulator has had the investment products on its radar after a review in 2009 of products backed by Lehman Brothers found that sales advice had been either unclear or misleading in two-thirds of cases.
But sales of structured products have shot up since the credit crunch, with a 48 per cent rise in new sales in 2009 compared with 2008, according to the website Structuredretailproducts.com.
The UK retail market was worth £52bn at the end of 2010, up from £46bn the previous year. The FSA said it had taken steps to introduce the new rules after evidence that its current guidelines, introduced in 2001, were not working.
“We already have a rule that says firms have to be fair, clear and not misleading – but in a lot of cases we’re finding that’s not working,” the FSA said.
Structured products have been behind some of the largest fines imposed by the regulator in recent months, including a £1.4m fine on Norwich & Peterborough Building Society in April for mis-selling the investments and a £700,000 fine on RSM Tenon last year.
Some independent financial advisers have also faced individual fines for failing to explain the risks of the products properly. A consultation on the proposal is open to August 6.
The FSA expects to publish the results of a separate investigation into how structured products are sold and marketed to consumers later this year, which is expected to clamp down on sales practices further.
Copyright The Financial Times Limited 2011. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web.
Tuesday, November 23, 2010
Shaw Capital Guide to Interest-Free SBA ARC Loans for Debt Relief
Shaw Capital Management and Financing – Avoid debt and interest scams. Recovery Act Emergency Loans to $35,000 for Small Business
Here are the types of debt that will qualify:
1. Commercial mortgages on a building or property that your business owns.
2. Conventional term loans, including secured and unsecured.
3. Revolving lines of credit.
4. Capital leases.
5. Credit card debt.
6. Notes payable to vendors, suppliers and utilities.
7. First mortgages loans under SBA’s 504 Development Company Loan Program.
The “Viable” Business Standard
Richard Shaw
Shaw Capital Management and Financing
P.O. Box 17078
Baltimore, MD 21297
United States
City: Baltimore
Zip: 21297
State: Maryland
Country: United States
Phone: +1.4106842728
Fax: +1.4106842728
Baltimore, United States, Nov 19 2010 - . If your small business is struggling to pay debts, you may qualify for a new type of interest-free loan in amounts up to $35,000, guaranteed by the U.S. Small Business Administration. The temporary emergency program, called America’s Recovery Capital, or ARC, was authorized under the economic stimulus law passed earlier in the year and is now being launched by the SBA.
For borrowers, ARC loans will be interest-free, and with no SBA fees attached. But as with all SBA financing programs, the ARC loans will be made by private, commercial lenders, not SBA directly. Lenders, of course, won’t make loans for free, so the SBA will pay lenders monthly interest on the ARC loans on your behalf. And that’s basically free money for you and a good chance to get a little breathing room if you’re facing burdensome debt payments.
ARC loans are deferred-payment loans available to established, viable, for-profit small businesses that are suffering hardship right now and need short-term help to make principal and interest payments on existing debt. These loans are interest-free to the borrower (you), and 100 percent guaranteed by the SBA.
Shaw Capital Management and Financing - Here’s How it Works. In addition to the loans being zero interest and fully guaranteed by the government, you don't have to make any payments until a year after you receive the last of the funds, which will be disbursed within a period of up to six months. After the initial 12-month payment-free grace period, you'll have five years to pay it off.
Banks and other financial institutions that make small business loans should have information on the program available soon, and it will be up to them whether or not to participate. Meanwhile, details and updates on the program will be available at the SBA’s special Economic Recovery Act website at www.sba.gov/recovery. Keep in mind that proceeds from an ARC loan must be used specifically to make payments of principal and interest on existing business debt. But that includes a wide range of different types of loans, leases and lines that you might have.
Here are the types of debt that will qualify:
1. Commercial mortgages on a building or property that your business owns.
2. Conventional term loans, including secured and unsecured.
3. Revolving lines of credit.
4. Capital leases.
5. Credit card debt.
6. Notes payable to vendors, suppliers and utilities.
7. First mortgages loans under SBA’s 504 Development Company Loan Program.
8. Any SBA guaranteed loans made after Feb. 17, 2009 (but not SBA-backed loans made prior to that date).
For many business owners, paying down high-interest credit card debt would be the best use of ARC funds. But you will have to prove that the debt was incurred for specific business purposes, and the documentation requirements to use ARC funds for credit card debt could be stringent.
The loan application process, however, is designed to be rather quick. Once lenders submit the application, SBA is promising turnaround within 5-10 business days.
The “Viable” Business Standard
The key to qualifying for and receiving an ARC loan is whether your business is considered "viable" and is facing “immediate financial hardship.” While the standards don’t seem to present a major hurdle for existing businesses that have had success in the past, the viability measure might rule out newer businesses that haven’t turned a profit. And ARC loans are specifically not intended for startups.
Here's how the SBA defines “viable” for getting one of these loans:
"A viable small business is one that has been profitable in the past, but is just beginning to struggle with making loan payments, and can reasonably project that it can get back on track with the infusion of ARC loan funds and the benefit of deferred payments."
Examples of financial hardship offered by the SBA include declining sales or revenues, or difficulties in paying the operating expenses of the business. ARC loans will be available through SBA-approved lenders as long as the money holds out, or through September 30, 2010. Daniel Kehrer is Editor and Director of Content Development for Business.com, and write the What Works for Business blog.
With Shaw Capital Management and Financing, you get paid in full minus our fee the day we receive your freight bills. Other factoring companies holdback 10 to 15 percent of your money or more for each invoice in a reserve account. That reserve amount is not immediately provided to your company. In the end, you receive part of that percentage back, depending on how long it takes the factoring company to receive payment on the invoice.
Richard Shaw
Shaw Capital Management and Financing
P.O. Box 17078
Baltimore, MD 21297
United States
City: Baltimore
Zip: 21297
State: Maryland
Country: United States
Phone: +1.4106842728
Fax: +1.4106842728
Factoring of Credit Card or ACH Transactions for Fraud Scams
We can help you meet your cashflow needs immediately without entering into a long term factoring relationship.
Baltimore, United States, Nov 03 2010 - Shaw Capital Management and Financing provide same-day-funding. We can help you meet your cashflow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in full.
Many telemarketing businesses rely almost exclusively on credit card purchases but in order to conduct credit card sales, a legitimate business must first enter into a merchant account agreement with a bank which agrees to process their credit card transactions.
In most retail credit card transactions, the business provides the merchant bank with a sales slip (draft) representing the customer's credit card information and signature authorizing the charge.
The bank then transfers this amount into the business's merchant account. The business may then draw from that amount or transfer the money to other accounts. The merchant bank then contacts the issuer of the customer's credit card (issuing bank), presents the sales draft and requests reimbursement.
The card-issuing bank then bills the customer for the purchase. If the customer returns the purchased item or challenges the charge, a "charge-back" results and the issuing bank credits the customer's account and asks the merchant bank for a refund.
The merchant bank is then only entitled to recoup its loss from the "business", not the credit card customer. If the business refuses, lacks sufficient funds, or is no longer functioning, the merchant bank absorbs the loss.
One bank review revealed that a single telemarketing operation deposited almost $1,000,000 into various merchant accounts. As a result of charge-backs, the bank lost $663,456 resulting from multiple sales credits of $399.50.
Due to the high charge-back ratios and lack of signed sales slips prevalent with fraudulent telemarketing companies it is difficult for the scammers to find merchant banks willing to accept their credit card transactions.
This restriction led to the development of "factoring" where the telemarketer uses a "reputable" third-party, non-telemarketing business (factoring merchant) as a conduit for depositing credit card sales for a percentage fee of around 15%. This factoring merchant processes the transaction either through his account or through a separate one created for the telemarketing company.
Telemarketers will induce acquaintances, friends and reputable merchants to open a merchant account with promises of easy money, neglecting to mention the personal liability involved. They may advise them not to deposit too substantial an amount of sales in a single day, or deposit too many sales using the same dollar amount, as this may raise suspicion at the bank.
Section 310.3(c) of the Telemarketing Sales Rule, which prohibits credit card laundering or factoring, provides that:
Except as expressly permitted by the applicable credit card system, it is a deceptive telemarketing act or practice and a violation of this Rule for:
(1) A merchant to present to or deposit into, or cause another to present to or deposit into, the credit card system for payment, a credit card sales draft generated by a telemarketing transaction that is not the result of a telemarketing credit card transaction between the cardholder and the merchant . . . .
Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, asset based financing, accounts receivable management, and other related financial services.
Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
With Shaw Capital Management and Financing, you get paid in full minus our fee the day we receive your freight bills. Other factoring companies holdback 10 to 15 percent of your money or more for each invoice in a reserve account. That reserve amount is not immediately provided to your company. In the end, you receive part of that percentage back, depending on how long it takes the factoring company to receive payment on the invoice.
Richard Shaw
Shaw Capital Management and Financing
P.O. Box 17078
Baltimore, MD 21297
United States
City: Baltimore
Zip: 21297
State: Maryland
Country: United States
Phone: +1.4106842728
Fax: +1.4106842728
E-Mail:
Website: http://shaw-capitalmanagement.com
Baltimore, United States, Nov 03 2010 - Shaw Capital Management and Financing provide same-day-funding. We can help you meet your cashflow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in full.
Many telemarketing businesses rely almost exclusively on credit card purchases but in order to conduct credit card sales, a legitimate business must first enter into a merchant account agreement with a bank which agrees to process their credit card transactions.
In most retail credit card transactions, the business provides the merchant bank with a sales slip (draft) representing the customer's credit card information and signature authorizing the charge.
The bank then transfers this amount into the business's merchant account. The business may then draw from that amount or transfer the money to other accounts. The merchant bank then contacts the issuer of the customer's credit card (issuing bank), presents the sales draft and requests reimbursement.
The card-issuing bank then bills the customer for the purchase. If the customer returns the purchased item or challenges the charge, a "charge-back" results and the issuing bank credits the customer's account and asks the merchant bank for a refund.
The merchant bank is then only entitled to recoup its loss from the "business", not the credit card customer. If the business refuses, lacks sufficient funds, or is no longer functioning, the merchant bank absorbs the loss.
One bank review revealed that a single telemarketing operation deposited almost $1,000,000 into various merchant accounts. As a result of charge-backs, the bank lost $663,456 resulting from multiple sales credits of $399.50.
Due to the high charge-back ratios and lack of signed sales slips prevalent with fraudulent telemarketing companies it is difficult for the scammers to find merchant banks willing to accept their credit card transactions.
This restriction led to the development of "factoring" where the telemarketer uses a "reputable" third-party, non-telemarketing business (factoring merchant) as a conduit for depositing credit card sales for a percentage fee of around 15%. This factoring merchant processes the transaction either through his account or through a separate one created for the telemarketing company.
Telemarketers will induce acquaintances, friends and reputable merchants to open a merchant account with promises of easy money, neglecting to mention the personal liability involved. They may advise them not to deposit too substantial an amount of sales in a single day, or deposit too many sales using the same dollar amount, as this may raise suspicion at the bank.
Section 310.3(c) of the Telemarketing Sales Rule, which prohibits credit card laundering or factoring, provides that:
Except as expressly permitted by the applicable credit card system, it is a deceptive telemarketing act or practice and a violation of this Rule for:
(1) A merchant to present to or deposit into, or cause another to present to or deposit into, the credit card system for payment, a credit card sales draft generated by a telemarketing transaction that is not the result of a telemarketing credit card transaction between the cardholder and the merchant . . . .
Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, asset based financing, accounts receivable management, and other related financial services.
Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
With Shaw Capital Management and Financing, you get paid in full minus our fee the day we receive your freight bills. Other factoring companies holdback 10 to 15 percent of your money or more for each invoice in a reserve account. That reserve amount is not immediately provided to your company. In the end, you receive part of that percentage back, depending on how long it takes the factoring company to receive payment on the invoice.
Richard Shaw
Shaw Capital Management and Financing
P.O. Box 17078
Baltimore, MD 21297
United States
City: Baltimore
Zip: 21297
State: Maryland
Country: United States
Phone: +1.4106842728
Fax: +1.4106842728
E-Mail:
Website: http://shaw-capitalmanagement.com
Monday, November 22, 2010
Shaw Capital Management News -foreign Exchange Markets 2010 Part 4
Prospects therefore remain disappointing, and are being made worse by the differences that exist between member countries. The European Central Bank therefore faces a difficult situation. It continues to forecast moderate growth and moderate inflation; but it is being severely criticised for failing to address the problems of a two-speed economy, and for its unwillingness so far to face the threat that the deteriorating situation in Greece could quickly begin to destabilise other member countries and have serious consequences for the financial stability and growth prospects of the entire area.
It is not surprising therefore that investors and speculators have started to reduce their exposure to the euro.
Shaw Capital Management News - Foreign Exchange Markets 2010 Part 4: - The critical question therefore is whether the fall of the euro is now over.
Related Coverage
* Foreign Exchange Markets 2010 Part 3: Shaw Capital Management
The recent State of the Union message to Congress by President Obama included a request for the approval of a further fiscal stimulus package this year amounting to around $100 billion to help to tackle the unemployment problem, and he has also presented a $3.8 trillion budget for fiscal 2011 that is likely to maintain the overall deficit around the $1.35 trillion level expected this year.
Since the currency is unlikely to receive any real support from the general background situation in the euro-zone, everything depends on the developing debt situation, and particularly on the situation in Greece; and also on the possibility of support operations from stronger member countries and from the European Central Bank, and the European Commission. The situation remains uncertain. The central bank appears to be reluctant to offer help, and the German government, which might have been expected to become involved, has also made no response so far.
Shaw Capital Management News - But the European Commission has endorsed the latest plans by the Greek government to introduce an across-the-board freeze on public sector wages and cuts in allowances that are expected to reduce the overall public sector wage bill by around 4%.
This may encourage support from elsewhere; however the Commission has warned that it will not tolerate any slippage from the target and will if necessary demand tougher action from the government to ensure that it stays on course.
But it is far from clear that the Greek government can obtain the necessary support in parliament even for the present proposed measures, and so the uncertainty will continue.
It is therefore likely that there will be further falls in the euro over the coming weeks.
Sterling has improved slightly over the past month, helped by the weakness of the euro.
Shaw Capital Management News - The background situation in the UK remains unattractive, and there have already been threats that its AAA credit rating is at risk unless there are credible measures to reduce the massive fiscal deficit after the forthcoming general election is over.
It is not surprising therefore that investors and speculators have started to reduce their exposure to the euro.
Shaw Capital Management News - Foreign Exchange Markets 2010 Part 4: - The critical question therefore is whether the fall of the euro is now over.
Related Coverage
* Foreign Exchange Markets 2010 Part 3: Shaw Capital Management
The recent State of the Union message to Congress by President Obama included a request for the approval of a further fiscal stimulus package this year amounting to around $100 billion to help to tackle the unemployment problem, and he has also presented a $3.8 trillion budget for fiscal 2011 that is likely to maintain the overall deficit around the $1.35 trillion level expected this year.
Since the currency is unlikely to receive any real support from the general background situation in the euro-zone, everything depends on the developing debt situation, and particularly on the situation in Greece; and also on the possibility of support operations from stronger member countries and from the European Central Bank, and the European Commission. The situation remains uncertain. The central bank appears to be reluctant to offer help, and the German government, which might have been expected to become involved, has also made no response so far.
Shaw Capital Management News - But the European Commission has endorsed the latest plans by the Greek government to introduce an across-the-board freeze on public sector wages and cuts in allowances that are expected to reduce the overall public sector wage bill by around 4%.
This may encourage support from elsewhere; however the Commission has warned that it will not tolerate any slippage from the target and will if necessary demand tougher action from the government to ensure that it stays on course.
But it is far from clear that the Greek government can obtain the necessary support in parliament even for the present proposed measures, and so the uncertainty will continue.
It is therefore likely that there will be further falls in the euro over the coming weeks.
Sterling has improved slightly over the past month, helped by the weakness of the euro.
Shaw Capital Management News - The background situation in the UK remains unattractive, and there have already been threats that its AAA credit rating is at risk unless there are credible measures to reduce the massive fiscal deficit after the forthcoming general election is over.
The UK and the Budget: Shaw Capital Management Korea
In the UK it is obvious that there is no possibility of continuing with budget deficits of some 13% of GDP,
Seoul, South Korea, Nov 22 2010 - In the UK it is obvious that there is no possibility of continuing with budget deficits of some 13% of GDP, the present prospect if no action is taken.
Unfortunately however the recent UK Budget produced no credible plan for dealing with this problem. It swept it into the lap of the new government after the May election, whatever that government is.
The UK and the Budget: Shaw Capital Management Korea. The UK cannot delude themselves that rapid resumed growth will lead to a rapid return of the previous revenue streams. UK growth in most forecasts, ours included, is projected as slow. In our view there is a good reason: the continuing shortage of oil and raw materials worldwide prevents rapid growth for the world
as a whole and since emerging market economies are continuing to grow rapidly that restricts the growth possibilities in countries like the UK and other developed countries.
We are already seeing inflation spread into China and other emerging countries, forcing a tightening of policy.
It seems likely that this tightening will be enough to restrain world growth to rates that will not push commodity prices much higher. So even the fast-growing world economies are being forced to limit their growth ambitions; as for the UK they are achieving ‘recovery’, but hardly enthusiastic growth.
All this will only change when innovation in raw material use has freed up net world supplies.
Fortunately the flexibility of the UK labour market has restricted the jobs fallout. Unemployment has peaked below 8% (just over 5% on the benefit-claimant measure) as people have opted for wage freezes or cuts and shorter hours … so there is underemployment
but not the disaster of double-digit unemployment rates. But this environment is one in which tax revenues will not recover much and in which the demands for public spending will continue.
Time will tell how big the ‘structural deficit’ … that will emerge once the recovery is complete … may be.
But policy decisions cannot wait until this is better known. So in this Budget the need was to produce a five-year public sector adjustment plan.
Two things should guide this plan: keeping the taxes down and competitive, so that growth and innovation resume, and restoring efficiency in public spending.
The UK and the Budget: Shaw Capital Management Korea. Spending cuts to begin with the last, the current government unleashed a massive surge in public spending from 2000, raising it by 8% of GDP before the crisis raised it by more again.
Everyone knew that without reform and gradual increases, such money would be wasted; there is no practical way to spend such vast sums without raising wages and wasting money on speculative projects.
Productivity in the public sector duly slumped and public sector remuneration including pensions has surged past the private sector where market forces suggest pay should be higher to reflect greater insecurity.
The UK and the Budget: Shaw Capital Management Korea. To reduce public spending back to where it started in 2000 as a share of GDP (at around 36%) would require it to grow in real terms by about 16% less than real GDP over the next five years. Since total GDP growth over that period is likely to be about 10%, which means that spending must be cut by about 1% a year in real terms.
This is a feasible target. The UK Treasury under Gordon Brown became a brute instrument of spending increase, oddly somewhat against the protests of some departments worrying about wasteful effects. The UK Treasury was never traditionally like this … very much the opposite, a place from which wringing money was like getting blood from stones.
It should be returned to its traditional function of restraint; Treasury control, old-style, is the best instrument for forcing departments to find the economies they privately know they can make.
Shaw Capital Management, Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Peter Kennedy
Shaw Capital Management
7F Yeji Building,
Yeoksam-Dong 641-11,
Gangnam-Gu, Seoul,
Korea
City: Seoul
Zip: 135-909
State: Gangnam-Gu, Seoul,
Country: South Korea
Phone: + 82 2 398 5852
Fax: +82 2 398 5853
E-Mail:
Website: http://www.shaw-capital.com
Seoul, South Korea, Nov 22 2010 - In the UK it is obvious that there is no possibility of continuing with budget deficits of some 13% of GDP, the present prospect if no action is taken.
Unfortunately however the recent UK Budget produced no credible plan for dealing with this problem. It swept it into the lap of the new government after the May election, whatever that government is.
The UK and the Budget: Shaw Capital Management Korea. The UK cannot delude themselves that rapid resumed growth will lead to a rapid return of the previous revenue streams. UK growth in most forecasts, ours included, is projected as slow. In our view there is a good reason: the continuing shortage of oil and raw materials worldwide prevents rapid growth for the world
as a whole and since emerging market economies are continuing to grow rapidly that restricts the growth possibilities in countries like the UK and other developed countries.
We are already seeing inflation spread into China and other emerging countries, forcing a tightening of policy.
It seems likely that this tightening will be enough to restrain world growth to rates that will not push commodity prices much higher. So even the fast-growing world economies are being forced to limit their growth ambitions; as for the UK they are achieving ‘recovery’, but hardly enthusiastic growth.
All this will only change when innovation in raw material use has freed up net world supplies.
Fortunately the flexibility of the UK labour market has restricted the jobs fallout. Unemployment has peaked below 8% (just over 5% on the benefit-claimant measure) as people have opted for wage freezes or cuts and shorter hours … so there is underemployment
but not the disaster of double-digit unemployment rates. But this environment is one in which tax revenues will not recover much and in which the demands for public spending will continue.
Time will tell how big the ‘structural deficit’ … that will emerge once the recovery is complete … may be.
But policy decisions cannot wait until this is better known. So in this Budget the need was to produce a five-year public sector adjustment plan.
Two things should guide this plan: keeping the taxes down and competitive, so that growth and innovation resume, and restoring efficiency in public spending.
The UK and the Budget: Shaw Capital Management Korea. Spending cuts to begin with the last, the current government unleashed a massive surge in public spending from 2000, raising it by 8% of GDP before the crisis raised it by more again.
Everyone knew that without reform and gradual increases, such money would be wasted; there is no practical way to spend such vast sums without raising wages and wasting money on speculative projects.
Productivity in the public sector duly slumped and public sector remuneration including pensions has surged past the private sector where market forces suggest pay should be higher to reflect greater insecurity.
The UK and the Budget: Shaw Capital Management Korea. To reduce public spending back to where it started in 2000 as a share of GDP (at around 36%) would require it to grow in real terms by about 16% less than real GDP over the next five years. Since total GDP growth over that period is likely to be about 10%, which means that spending must be cut by about 1% a year in real terms.
This is a feasible target. The UK Treasury under Gordon Brown became a brute instrument of spending increase, oddly somewhat against the protests of some departments worrying about wasteful effects. The UK Treasury was never traditionally like this … very much the opposite, a place from which wringing money was like getting blood from stones.
It should be returned to its traditional function of restraint; Treasury control, old-style, is the best instrument for forcing departments to find the economies they privately know they can make.
Shaw Capital Management, Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Peter Kennedy
Shaw Capital Management
7F Yeji Building,
Yeoksam-Dong 641-11,
Gangnam-Gu, Seoul,
Korea
City: Seoul
Zip: 135-909
State: Gangnam-Gu, Seoul,
Country: South Korea
Phone: + 82 2 398 5852
Fax: +82 2 398 5853
E-Mail:
Website: http://www.shaw-capital.com
Portfolio Recommendations: Shaw Capital Management Korea
We have made no changes in the balance of our portfolios this month. The strength of the equity markets is encouraging, and we expect that the global economy will continue to recover.
FOR IMMEDIATE RELEASE
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PRLog (Press Release) – Nov 22, 2010 – We have made no changes in the balance of our portfolios this month. The strength of the equity markets is encouraging, and we expect that the global economy will continue to recover, and push the markets even higher by year-end.
Portfolio Recommendations:
cuts (or tax rises) now, or later spread over a long period. On the monetary side, continued printing of money or cessation and even reversal. In fact this is one of those periods when the ‘independence’
the extent of money printing, is a disadvantage for the economy, all of which need at present careful coordination of monetary and fiscal policy.
Portfolio Recommendations:
Portfolio Recommendations:
For most however there is a choice: on the fiscal side cuts (or tax rises) now, or later spread over a long period. On the monetary side, continued printing of money or cessation and even reversal. In fact this is one of those periods when the ‘independence’
At Shaw Capital Management we give you the information and insight you need to make the right investment choices. We look forward to working with you and being the open architects of your financial well being.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.Our philosophy is simple: almost every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Before Shaw Capital Management South Korea launched the open architecture revolution, investors had to make the unhappy choice between selecting an advisor who was independent, but unsophisticated (the traditional pension and endowment consulting firms), or selecting an advisor who was sophisticated but had conflicting interests (global banks, trust companies, money management firms).
Today, virtually all investors faced with the challenge of managing a significant pool of capital can access open architecture advice.
Portfolio Recommendations:
cuts (or tax rises) now, or later spread over a long period. On the monetary side, continued printing of money or cessation and even reversal. In fact this is one of those periods when the ‘independence’
the extent of money printing, is a disadvantage for the economy, all of which need at present careful coordination of monetary and fiscal policy.
Portfolio Recommendations:
Portfolio Recommendations:
For most however there is a choice: on the fiscal side cuts (or tax rises) now, or later spread over a long period. On the monetary side, continued printing of money or cessation and even reversal. In fact this is one of those periods when the ‘independence’
At Shaw Capital Management we give you the information and insight you need to make the right investment choices. We look forward to working with you and being the open architects of your financial well being.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.Our philosophy is simple: almost every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Before Shaw Capital Management South Korea launched the open architecture revolution, investors had to make the unhappy choice between selecting an advisor who was independent, but unsophisticated (the traditional pension and endowment consulting firms), or selecting an advisor who was sophisticated but had conflicting interests (global banks, trust companies, money management firms).
Today, virtually all investors faced with the challenge of managing a significant pool of capital can access open architecture advice.
# # #
Shaw Capital Management, Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation;
--- end ---
Shaw Capital Management Newsletter: Summary by shawcapital
Equity Markets. All the major equity markets, and most of the emerging markets, have moved higher over the month. Wall Street has provided most of the momentum, encouraged by optimistic comments from the Fed and by the flow of favourable corporate results.
Markets in mainland Europe have responded, despite the uncertainties about debt defaults; the UK market had coped well with a disappointing Budget statement that has left all the difficult decisions until after the forthcoming general election; and the best performance amongst the major markets has occurred in the Japanese market as it has recovered from earlier weakness.
Shaw Capital Management Newsletter: Summary. Financial Markets. The mood in the financial markets has become more optimistic again over the past month. There are still concerns about the prospects for the some economies; and the latest agreement amongst the member countries of the euro-zone to offer help to Greece "if this becomes necessary" has been received with considerable scepticism in the markets. This has not really eased the fears about the possibility of sovereign debt defaults. But there have still been no significant moves towards "exit strategies" by central banks and governments, and so monetary and fiscal policies remain stimulatory, and this has helped to reassure investors that the global economic recovery will continue, even if the pace in the Euro zone is disappointing.
Government bond markets have had another difficult month. The latest agreement amongst the member countries of the euro-zone to offer help to Greece has not been well received, Greek bonds have continued to weaken, and this has provided further momentum to the switching operations out of the bonds of weaker countries. For most of the past month these switching operations benefited the major bond markets; but towards month-end a series of disappointing auctions led to a sharp fall in the world bond market and increased the overall mood of uncertainty. The massive funding requirements resulting from the measures to counter the recession are clearly putting great strain on all the bond markets.
Movements amongst the major currencies have been fairly limited over the past month, but the markets remain very uncertain. The dollar has retained its "safe haven" status, despite the sudden weakness in the world bond market.
Investors and traders have awaited further evidence about debt problems in Europe that might affect the euro, and about the policy decisions in the UK after the general election that might affect sterling; but the view in the markets seems to be that both currencies will fall further against the US dollar. The yen has also weakened over the month, with the move attributed to the resumption of "carry-trade" operations financed by cheap yen borrowings.
Short-Term Interest Rates. There have been no changes in short-term interest rates in the major markets over the month. Shaw Capital Management Newsletter: Summary. Commodity markets have been encouraged by the general improvement in sentiment, but have produced a mixed performance. Base metal prices are sharply higher, but soft commodity prices are mixed, with the further big fall in sugar prices as the main feature.
At Shaw Capital Management we give you the information and insight you need to make the right investment choices. We look forward to working with you and being the open architects of your financial well being.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor. Our philosophy is simple: almost every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Before Shaw Capital launched the open architecture revolution, investors had to make the unhappy choice between selecting an advisor who was independent, but unsophisticated (the traditional pension and endowment consulting firms), or selecting an advisor who was sophisticated but had conflicting interests (global banks, trust companies, money management firms).
Today, virtually all investors faced with the challenge of managing a significant pool of capital can access open architecture advice.
A true open architecture firm is completely independent of the rest of the financial services industry and accepts compensation only from its clients. In addition, open architecture firms must make the financial commitment to hire only the most experienced advisors, and those advisors must apply their experience to the issues that will most affect their clients' wealth. Matters like asset allocation and manager search are simply too important to be left in the hands of young analysts. We are proud of our role in leading the open architecture revolution, and look forward to introducing you to its benefits.
Markets in mainland Europe have responded, despite the uncertainties about debt defaults; the UK market had coped well with a disappointing Budget statement that has left all the difficult decisions until after the forthcoming general election; and the best performance amongst the major markets has occurred in the Japanese market as it has recovered from earlier weakness.
Shaw Capital Management Newsletter: Summary. Financial Markets. The mood in the financial markets has become more optimistic again over the past month. There are still concerns about the prospects for the some economies; and the latest agreement amongst the member countries of the euro-zone to offer help to Greece "if this becomes necessary" has been received with considerable scepticism in the markets. This has not really eased the fears about the possibility of sovereign debt defaults. But there have still been no significant moves towards "exit strategies" by central banks and governments, and so monetary and fiscal policies remain stimulatory, and this has helped to reassure investors that the global economic recovery will continue, even if the pace in the Euro zone is disappointing.
Government bond markets have had another difficult month. The latest agreement amongst the member countries of the euro-zone to offer help to Greece has not been well received, Greek bonds have continued to weaken, and this has provided further momentum to the switching operations out of the bonds of weaker countries. For most of the past month these switching operations benefited the major bond markets; but towards month-end a series of disappointing auctions led to a sharp fall in the world bond market and increased the overall mood of uncertainty. The massive funding requirements resulting from the measures to counter the recession are clearly putting great strain on all the bond markets.
Movements amongst the major currencies have been fairly limited over the past month, but the markets remain very uncertain. The dollar has retained its "safe haven" status, despite the sudden weakness in the world bond market.
Investors and traders have awaited further evidence about debt problems in Europe that might affect the euro, and about the policy decisions in the UK after the general election that might affect sterling; but the view in the markets seems to be that both currencies will fall further against the US dollar. The yen has also weakened over the month, with the move attributed to the resumption of "carry-trade" operations financed by cheap yen borrowings.
Short-Term Interest Rates. There have been no changes in short-term interest rates in the major markets over the month. Shaw Capital Management Newsletter: Summary. Commodity markets have been encouraged by the general improvement in sentiment, but have produced a mixed performance. Base metal prices are sharply higher, but soft commodity prices are mixed, with the further big fall in sugar prices as the main feature.
At Shaw Capital Management we give you the information and insight you need to make the right investment choices. We look forward to working with you and being the open architects of your financial well being.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor. Our philosophy is simple: almost every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Before Shaw Capital launched the open architecture revolution, investors had to make the unhappy choice between selecting an advisor who was independent, but unsophisticated (the traditional pension and endowment consulting firms), or selecting an advisor who was sophisticated but had conflicting interests (global banks, trust companies, money management firms).
Today, virtually all investors faced with the challenge of managing a significant pool of capital can access open architecture advice.
A true open architecture firm is completely independent of the rest of the financial services industry and accepts compensation only from its clients. In addition, open architecture firms must make the financial commitment to hire only the most experienced advisors, and those advisors must apply their experience to the issues that will most affect their clients' wealth. Matters like asset allocation and manager search are simply too important to be left in the hands of young analysts. We are proud of our role in leading the open architecture revolution, and look forward to introducing you to its benefits.
About the Author
Shaw Capital Management, Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc. shawcapital
Shaw Capital Management Newsletter: Summary
All the major equity markets, and most of the emerging markets, have moved higher over the month.
Markets in mainland Europe have responded, despite the uncertainties about debt defaults; the UK market had coped well with a disappointing Budget statement that has left all the difficult
Government bond markets have had another difficult month. The latest agreement amongst the member countries of the euro-zone to offer help to Greece has not been well received, Greek bonds have continued to weaken, and this has provided further momentum to the switching operations out of the bonds of weaker countries. For most of the past month these switching operations benefited the major bond markets; but towards month-end a series of
disappointing auctions led to a sharp fall in the world bond market and increased the overall mood of uncertainty. The massive funding requirements resulting from the measures to
Short-Term Interest Rates. There have been no changes in short-term interest rates in the
A true open architecture firm is completely independent of the rest of the financial services industry and accepts compensation only from its clients. In addition, open architecture firms must make the financial commitment to hire only the most experienced advisors, and those advisors must apply their experience to the issues that will most affect their clients' wealth.
Peter Kennedy
Shaw Capital Management
7F Yeji Building,
Yeoksam-Dong 641-11,
Gangnam-Gu, Seoul,
Korea
City: Seoul
Zip: 135-909
State: Gangnam-Gu, Seoul,
Country: South Korea
Phone: + 82 2 398 5852
Fax: +82 2 398 5853
E-Mail:
Seoul, South Korea, Nov 22 2010 - Equity Markets. All the major equity markets, and most of the emerging markets, have moved higher over the month. Wall Street has provided most of the momentum, encouraged by optimistic comments from the Fed and by the flow of favourable corporate results.
Markets in mainland Europe have responded, despite the uncertainties about debt defaults; the UK market had coped well with a disappointing Budget statement that has left all the difficult
decisions until after the forthcoming general election; and the best performance amongst the major markets has occurred in the Japanese market as it has recovered from earlier weakness.
Shaw Capital Management Newsletter: Summary. Financial Markets. The mood in the financial markets has become more optimistic again over the past month. There are still concerns about the prospects for the some economies; and the latest agreement amongst the member countries of the euro-zone to offer help to Greece “if this becomes necessary” has been received with considerable scepticism in the markets. This has not really eased the fears about the possibility of sovereign debt defaults. But there have still been no significant moves towards “exit strategies” by central banks and governments, and so monetary and fiscal policies remain stimulatory, and this has helped to reassure investors that the global economic recovery will continue, even if the pace in the Euro zone is disappointing.
Government bond markets have had another difficult month. The latest agreement amongst the member countries of the euro-zone to offer help to Greece has not been well received, Greek bonds have continued to weaken, and this has provided further momentum to the switching operations out of the bonds of weaker countries. For most of the past month these switching operations benefited the major bond markets; but towards month-end a series of
disappointing auctions led to a sharp fall in the world bond market and increased the overall mood of uncertainty. The massive funding requirements resulting from the measures to
counter the recession are clearly putting great strain on all the bond markets.
Movements amongst the major currencies have been fairly limited over the past month, but the markets remain very uncertain. The dollar has retained its “safe haven” status, despite the sudden weakness in the world bond market.
Investors and traders have awaited further evidence about debt problems in Europe that might affect the euro, and about the policy decisions in the UK after the general election that might affect sterling; but the view in the markets seems to be that both currencies will fall further against the US dollar. The yen has also weakened over the month, with the move attributed to the resumption of “carry-trade” operations financed by cheap yen borrowings.
Short-Term Interest Rates. There have been no changes in short-term interest rates in the
major markets over the month. Shaw Capital Management Newsletter: Summary. Commodity markets have been encouraged by the general improvement in sentiment, but have produced a mixed performance. Base metal prices are sharply higher, but soft commodity prices are mixed, with the further big fall in sugar prices as the main feature.
At Shaw Capital Management we give you the information and insight you need to make the right investment choices. We look forward to working with you and being the open architects of your financial well being.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor. Our philosophy is simple: almost every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Before Shaw Capital launched the open architecture revolution, investors had to make the unhappy choice between selecting an advisor who was independent, but unsophisticated (the traditional pension and endowment consulting firms), or selecting an advisor who was sophisticated but had conflicting interests (global banks, trust companies, money management firms).
Today, virtually all investors faced with the challenge of managing a significant pool of capital can access open architecture advice.
A true open architecture firm is completely independent of the rest of the financial services industry and accepts compensation only from its clients. In addition, open architecture firms must make the financial commitment to hire only the most experienced advisors, and those advisors must apply their experience to the issues that will most affect their clients' wealth.
Matters like asset allocation and manager search are simply too important to be left in the hands of young analysts. We are proud of our role in leading the open architecture revolution, and look forward to introducing you to its benefits.
Shaw Capital Management, Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Peter Kennedy
Shaw Capital Management
7F Yeji Building,
Yeoksam-Dong 641-11,
Gangnam-Gu, Seoul,
Korea
City: Seoul
Zip: 135-909
State: Gangnam-Gu, Seoul,
Country: South Korea
Phone: + 82 2 398 5852
Fax: +82 2 398 5853
E-Mail:
Website: http://www.shaw-capital.com
The Uk And The Budget By Shaw Capital Management Korea
In the UK it is obvious that there is no possibility of continuing with budget deficits of some 13% of GDP, the present prospect if no action is taken.
Unfortunately however the recent UK Budget produced no credible plan for dealing with this problem. It swept it into the lap of the new government after the May election, whatever that government is.
The UK and the Budget: Shaw Capital Management Korea. The UK cannot delude themselves that rapid resumed growth will lead to a rapid return of the previous revenue streams. UK growth in most forecasts, ours included, is projected as slow. In our view there is a good reason: the continuing shortage of oil and raw materials worldwide prevents rapid growth for the world
as a whole and since emerging market economies are continuing to grow rapidly that restricts the growth possibilities in countries like the UK and other developed countries.
We are already seeing inflation spread into China and other emerging countries, forcing a tightening of policy.
It seems likely that this tightening will be enough to restrain world growth to rates that will not push commodity prices much higher. So even the fast-growing world economies are being forced to limit their growth ambitions; as for the UK they are achieving ‘recovery’, but hardly enthusiastic growth.
All this will only change when innovation in raw material use has freed up net world supplies.
Fortunately the flexibility of the UK labour market has restricted the jobs fallout. Unemployment has peaked below 8% (just over 5% on the benefit-claimant measure) as people have opted for wage freezes or cuts and shorter hours … so there is underemployment
but not the disaster of double-digit unemployment rates. But this environment is one in which tax revenues will not recover much and in which the demands for public spending will continue.
Time will tell how big the ‘structural deficit’ … that will emerge once the recovery is complete … may be.
But policy decisions cannot wait until this is better known. So in this Budget the need was to produce a five-year public sector adjustment plan.
Two things should guide this plan: keeping the taxes down and competitive, so that growth and innovation resume, and restoring efficiency in public spending.
The UK and the Budget: Shaw Capital Management Korea. Spending cuts to begin with the last, the current government unleashed a massive surge in public spending from 2000, raising it by 8% of GDP before the crisis raised it by more again.
Everyone knew that without reform and gradual increases, such money would be wasted; there is no practical way to spend such vast sums without raising wages and wasting money on speculative projects.
Productivity in the public sector duly slumped and public sector remuneration including pensions has surged past the private sector where market forces suggest pay should be higher to reflect greater insecurity.
The UK and the Budget: Shaw Capital Management Korea. To reduce public spending back to where it started in 2000 as a share of GDP (at around 36%) would require it to grow in real terms by about 16% less than real GDP over the next five years. Since total GDP growth over that period is likely to be about 10%, which means that spending must be cut by about 1% a year in real terms.
This is a feasible target. The UK Treasury under Gordon Brown became a brute instrument of spending increase, oddly somewhat against the protests of some departments worrying about wasteful effects. The UK Treasury was never traditionally like this … very much the opposite, a place from which wringing money was like getting blood from stones.
It should be returned to its traditional function of restraint; Treasury control, old-style, is the best instrument for forcing departments to find the economies they privately know they can make.
Unfortunately however the recent UK Budget produced no credible plan for dealing with this problem. It swept it into the lap of the new government after the May election, whatever that government is.
The UK and the Budget: Shaw Capital Management Korea. The UK cannot delude themselves that rapid resumed growth will lead to a rapid return of the previous revenue streams. UK growth in most forecasts, ours included, is projected as slow. In our view there is a good reason: the continuing shortage of oil and raw materials worldwide prevents rapid growth for the world
as a whole and since emerging market economies are continuing to grow rapidly that restricts the growth possibilities in countries like the UK and other developed countries.
We are already seeing inflation spread into China and other emerging countries, forcing a tightening of policy.
It seems likely that this tightening will be enough to restrain world growth to rates that will not push commodity prices much higher. So even the fast-growing world economies are being forced to limit their growth ambitions; as for the UK they are achieving ‘recovery’, but hardly enthusiastic growth.
All this will only change when innovation in raw material use has freed up net world supplies.
Fortunately the flexibility of the UK labour market has restricted the jobs fallout. Unemployment has peaked below 8% (just over 5% on the benefit-claimant measure) as people have opted for wage freezes or cuts and shorter hours … so there is underemployment
but not the disaster of double-digit unemployment rates. But this environment is one in which tax revenues will not recover much and in which the demands for public spending will continue.
Time will tell how big the ‘structural deficit’ … that will emerge once the recovery is complete … may be.
But policy decisions cannot wait until this is better known. So in this Budget the need was to produce a five-year public sector adjustment plan.
Two things should guide this plan: keeping the taxes down and competitive, so that growth and innovation resume, and restoring efficiency in public spending.
The UK and the Budget: Shaw Capital Management Korea. Spending cuts to begin with the last, the current government unleashed a massive surge in public spending from 2000, raising it by 8% of GDP before the crisis raised it by more again.
Everyone knew that without reform and gradual increases, such money would be wasted; there is no practical way to spend such vast sums without raising wages and wasting money on speculative projects.
Productivity in the public sector duly slumped and public sector remuneration including pensions has surged past the private sector where market forces suggest pay should be higher to reflect greater insecurity.
The UK and the Budget: Shaw Capital Management Korea. To reduce public spending back to where it started in 2000 as a share of GDP (at around 36%) would require it to grow in real terms by about 16% less than real GDP over the next five years. Since total GDP growth over that period is likely to be about 10%, which means that spending must be cut by about 1% a year in real terms.
This is a feasible target. The UK Treasury under Gordon Brown became a brute instrument of spending increase, oddly somewhat against the protests of some departments worrying about wasteful effects. The UK Treasury was never traditionally like this … very much the opposite, a place from which wringing money was like getting blood from stones.
It should be returned to its traditional function of restraint; Treasury control, old-style, is the best instrument for forcing departments to find the economies they privately know they can make.
Shaw Capital Management News: Washington Waxes Brazilian
Brazil provides us with an warning of a apace developing, energy-hungry frugalness in the Western Hemisphere, where biofuel is a fact of life. Biofuel is also an assets clamant for forcefulness investors and companies that poverty to attain money in Brazil. As an essential conception of the #3 frugalness in the Americas, alcohol can’t be unnoticed by the United States. (Sugar) Ethanol as a Global Commodity; Focus on Cosan Ltd. (NYSE: CZZ) Cosan is incoming into a render stake with an lubricator colossus that could be worth $12 billion, and its bright first to 2010 signals a restoration of welfare in alcohol and incoming of whatever implausible participants into biofuels. Cosan, a Brazilian consort that processes more dulcify than anyone added in the world, is today connexion with Royal land Shell (NYSE: RDS), the #2 lubricator shaper in Europe. Shell is stipendiary Cosan $1.625 1000000000 for half of its set assets. As conception of the render stake that module emerge, Shell is also attractive on Cosan’s debt and inaugural up 2,740 Shell assist stations to Cosan’s sweet, naif fuel. Shell module also wage Cosan digit diminutive Brazilian companies … Codexis and Iogen … where Shell has been finance in ethanol. Cosan is incoming into a render stake with an lubricator colossus that could be worth $12 billion, and… signals a restoration of welfare in alcohol and incoming of whatever implausible participants into biofuels. Shaw Capital Management News: Cosan stands to acquire bounteous from an economical grouping of motion rural leftovers into render in its possess right. Of every the money and noesis dynamical hands, digit conception is most important: By gaining admittance to Shell’s organisation system, Cosan module hit the riches of ramping up creation without worrying if there module be buyers. Shell wants to alter Cosan’s cane-based business. Cosan production today has to acquire from 2 1000000000 liters per assemblage up to the 3 1000000000 that module be necessary to fulfill a amount 4,500 render stations in Brazil. From there, it’s up to 4 and 5 billion liters yearly and on to making alcohol a orbicular commodity. You’d be hornlike pressed to verify the disagreement between Shell and Cosan’s statements on this render stake if you distant a pair of words. Very simply, apiece consort wants admittance to the other’s expertise. “Cosan represents the prizewinning entry to sustainable biofuels in the market… the prizewinning entry of scale,” Shell’s Mark reverend said in London. In Sao Paulo, Cosan Chairman Rubens Ometto said the tie-up is witting to be “the travel nervy that was lacking, in spite of every our efforts, to attain alcohol a orbicular commodity.” Shell’s 45,000 stations around the concern module viscus biofuel to vehicles that crapper separate on gasoline, ethanol, or a variety of the two. Shaw Capital Management News: Low prices also help, as evidenced in Brasil where flex-fuel vehicles today statement for 90% of newborn cars and pushcart sales. Shell’s 45,000 stations around the concern module viscus biofuel to vehicles that crapper separate on gasoline, ethanol, or a variety of the digit (Brazil mandates that every fuel hit at small a 20% alcohol component). As it stands, Brazilians are the modify users of the vast eld of the alcohol that their land produces (about 25 1000000000 liters annually). And you wouldn’t undergo it from most of the media, but alcohol is more than meet an moving matter… Shaw Capital Management – Investment Innovation & Excellence. We wage the information, brainwave and skillfulness that you requirement to attain the correct assets choices. clarinettist Capital typically offers its clients much services as quality portion and portfolio design; tralatitious and non-traditional trainer analyse and selection; portfolio implementation; portfolio monitoring and consolidated action reporting; and another riches direction services, including estate, tax, consortium and shelter planning, quality custody, intimately held playing issues related with the organisation or treatment of a kinsfolk office, the manufacture of kinsfolk assets partnerships or LLCs, philanthropy, kinsfolk kinetics and inter-generation issues, etc. Tags: Brazilian , Capital , Management , News , Shaw , Washington , Waxes This entry was posted on Monday, June 14th, 2010 at 7:47 am and is filed under media venture capital . You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
Monday, November 8, 2010
Purchase Order Financing Site Highlighted In Entrepreneur Magazine
Shaw Capital Management and Financing sharing information, tips and advice on factoring and accounts receivable financing and factoring to avoid scams and other fraudulent transactions. Information focus on the importance of choosing the right firm and understanding the intricacies of this financing alternative and what pitfalls to avoid.
The February 2010 issue of Entrepreneur magazine has singled out PO finance leader PurchaseOrderFinancing.com as an example of one of several commercial financing options available to small businesses short on cash or credit. Feature article What To Do When the Bank Pulls Your Line of Credit lists a number of options including community banks, credit unions, and other alternative sources with examples of specific providers of each. (Article page 42, company citation page 47.)
Were delighted that a prestigious publication like Entrepreneur has mentioned our company as a go-to source for our kind of commercial financing, says company founder and CEO Dan Casey. Its an honor.
Dans company provides businesses with the additional working capital they need to take advantage of large-order sales opportunities.Purchase order financingenables such transactions by leveraging the finances of the client's potential customer, not those of the client itself.
Casey explains, "What our clients all have in common is the ability to demonstrate a business opportunity with the promise of profit. We base our approval on that profit potential - not on the current balance sheet. How it works is we open a Letter of Credit to pay the suppliers, so our clients can take on the job without having the capital themselves." He goes on to state that his company can secure up to 100% financing of up to 25 million, usually within 7 to 14 days. The site features a broad range of topic pages to help businesses unfamiliar with PO financing such as:
Purchase Order Financing Blog- News and updates from the PO financing industry
What is Purchase Order Financing- General overview of the PO funding process
Apparel PO Financing- Detailed overview of funding options for the apparel and garment industries
Government PO Financing- Information on the online government contract marketplace and the available options for funding
When business owners encounter their "biggest-ever" sales opportunity, many unnecessarily pass it up for lack of working capital. PO financing is a tool that connects businesses with the money they need to make their big opportunity a reality. "Say you get a large purchase order from a good customer, offers Dan Casey. We can open a Letter of Credit to pay your supplier, so you can take on the job without having the capital yourself. Everybody wins."
Although the website was launched in January, 2009, the company behind it has been finding creative financial solutions for clients since 2002. Manufacturers, wholesalers, distributors, importers and exporters are among the kinds of businesses that may consider purchase order financing. The process can not only facilitate the immediate business opportunity at hand, but often may also result in the promotion of the client's business to a significantly higher competitive category.
The Entrepreneur article does caution that businesses that take a long time to have their goods manufactured face higher costs for purchase order financing; the shorter the turnaround the better.
Dan Casey has owned and managed businesses in finance, consulting, manufacturing, advertising, technology and other industries throughout his career. "PO financing is a new concept to some people, but its easier to use than you might think, notes Casey, Every case is different, but the process always starts the same way - with a conversation about the profit potential that a specific business opportunity promises."
PurchaseOrderFinancing.com serves as the link between small businesses and the working capital they need to seize an atypically large business opportunity. This website is the newest addition to the structured finance firm founded by Dan Casey in 2002 which develops and implements creative financial strategies for commercial clients with working capital challenges. Dan Casey, Founder and CEO. A graduate of DePaul University in Finance, Dan has orchestrated an extraordinary career in starting and building businesses.
The February 2010 issue of Entrepreneur magazine has singled out PO finance leader PurchaseOrderFinancing.com as an example of one of several commercial financing options available to small businesses short on cash or credit. Feature article What To Do When the Bank Pulls Your Line of Credit lists a number of options including community banks, credit unions, and other alternative sources with examples of specific providers of each. (Article page 42, company citation page 47.)
Were delighted that a prestigious publication like Entrepreneur has mentioned our company as a go-to source for our kind of commercial financing, says company founder and CEO Dan Casey. Its an honor.
Dans company provides businesses with the additional working capital they need to take advantage of large-order sales opportunities.Purchase order financingenables such transactions by leveraging the finances of the client's potential customer, not those of the client itself.
Casey explains, "What our clients all have in common is the ability to demonstrate a business opportunity with the promise of profit. We base our approval on that profit potential - not on the current balance sheet. How it works is we open a Letter of Credit to pay the suppliers, so our clients can take on the job without having the capital themselves." He goes on to state that his company can secure up to 100% financing of up to 25 million, usually within 7 to 14 days. The site features a broad range of topic pages to help businesses unfamiliar with PO financing such as:
Purchase Order Financing Blog- News and updates from the PO financing industry
What is Purchase Order Financing- General overview of the PO funding process
Apparel PO Financing- Detailed overview of funding options for the apparel and garment industries
Government PO Financing- Information on the online government contract marketplace and the available options for funding
When business owners encounter their "biggest-ever" sales opportunity, many unnecessarily pass it up for lack of working capital. PO financing is a tool that connects businesses with the money they need to make their big opportunity a reality. "Say you get a large purchase order from a good customer, offers Dan Casey. We can open a Letter of Credit to pay your supplier, so you can take on the job without having the capital yourself. Everybody wins."
Although the website was launched in January, 2009, the company behind it has been finding creative financial solutions for clients since 2002. Manufacturers, wholesalers, distributors, importers and exporters are among the kinds of businesses that may consider purchase order financing. The process can not only facilitate the immediate business opportunity at hand, but often may also result in the promotion of the client's business to a significantly higher competitive category.
The Entrepreneur article does caution that businesses that take a long time to have their goods manufactured face higher costs for purchase order financing; the shorter the turnaround the better.
Dan Casey has owned and managed businesses in finance, consulting, manufacturing, advertising, technology and other industries throughout his career. "PO financing is a new concept to some people, but its easier to use than you might think, notes Casey, Every case is different, but the process always starts the same way - with a conversation about the profit potential that a specific business opportunity promises."
PurchaseOrderFinancing.com serves as the link between small businesses and the working capital they need to seize an atypically large business opportunity. This website is the newest addition to the structured finance firm founded by Dan Casey in 2002 which develops and implements creative financial strategies for commercial clients with working capital challenges. Dan Casey, Founder and CEO. A graduate of DePaul University in Finance, Dan has orchestrated an extraordinary career in starting and building businesses.
Shaw Capital Management: Brazil's Economy
Brazil's economy emerged from a deep but short recession in the second half of last year. The economy is expected to grow by at least 5.5% this year. But along with economic growth, expectations of higher inflation have also returned. Shaw Capital Management Korea: Brazil's Economy - The government's target for annual consumer price inflation is 4.5%. To contain inflation Brazil's central bank has raised banking reserve requirements on term deposits from 13% to 15%. In addition to the increase in reserve requirements, the bank also restored additional charges on cash and term deposits to 8% from 5% and 4%, respectively.
Shaw Capital Management And Financing
Shaw Capital Management and Financing provides export trade financing to clients in every major world market and can convert accounts receivable finance transactions in 17 currencies. Avoid scams and other fraudulent transactions. Deal with the best financing companies only. No registration fee needed.
We have no minimum or maximum monthly volume requirements. Other factoring companies require a financial commitment for the amount of freight bills you factor each month.
Our highly skilled team provides full administrative support - including credit management, invoicing, collections, account reporting, expense reporting, fuel card management and much more!
With Shaw Capital Management and Financing, you get paid in full minus our fee the day we receive your freight bills. Other factoring companies holdback 10 to 15 percent of your money or more for each invoice in a reserve account. That reserve amount is not immediately provided to your company. In the end, you receive part of that percentage back, depending on how long it takes the factoring company to receive payment on the invoice.
Shaw Capital Management and Financing factoring process works: 1. Contact us to become Shaw Capital Management and Financing client and be a member, just fillup form available online; 2. You must submit a factoring application for each load you want to factor at least 24 hours before your freight bills arrive in our office. Please request for an Online Application Form If you are on the road without Internet access, a fax version is available upon request; 3. Deliver the shipment, and then send us your freight bills, rate confirmation sheet and all paperwork and; 4. Get paid. We provide same-day-funding when your freight bills arrive.
We prepare all invoices on our behalf, submit them and collect payment directly. Avoid scams and other fraudulent transactions. Deal with the best financing companies only. No registration fee needed, secure your money.
At Shaw Capital Management - providing a fast, simple and affordable solution to bridge the gap between billing and collections ...
Shaw Capital Management and Financing provide same-day-funding. We can help you meet your cashflow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in full.
Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, asset based financing, accounts receivable management, and other related financial services.
Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
Based in Baltimore, Maryland. Importing into the tri-state area mostly from the far east such as China, Thailand, Taiwan and South Korea.
For your convenience, we have associate offices in Shanghai, Hong Kong, Taipei and Seoul in S Korea.
At Shaw Capital Management - No financials needed and with Flexible terms. Value of great service... Help grow your business...
Shaw Capital Management and Financing - Whether your item is big, small, fragile, difficult or oversize, no shipping assignment is too big for us.Get in touch with us today for a no obligation quote or estimate, we're here to help.Our estimates include all fees and we take care of everything with a team made up of experienced professionals.No hidden shipping costs. Let us blow away the smoke! We're open, up-front, and we include all costs in our prices.
We take care everything. We handle every step of the shipping process. If a problem comes up at any stage, we have the experience to solve it.We're passionate about what we do, and we're here to help you in any way we can.
We have no minimum or maximum monthly volume requirements. Other factoring companies require a financial commitment for the amount of freight bills you factor each month.
Our highly skilled team provides full administrative support - including credit management, invoicing, collections, account reporting, expense reporting, fuel card management and much more!
With Shaw Capital Management and Financing, you get paid in full minus our fee the day we receive your freight bills. Other factoring companies holdback 10 to 15 percent of your money or more for each invoice in a reserve account. That reserve amount is not immediately provided to your company. In the end, you receive part of that percentage back, depending on how long it takes the factoring company to receive payment on the invoice.
Shaw Capital Management and Financing factoring process works: 1. Contact us to become Shaw Capital Management and Financing client and be a member, just fillup form available online; 2. You must submit a factoring application for each load you want to factor at least 24 hours before your freight bills arrive in our office. Please request for an Online Application Form If you are on the road without Internet access, a fax version is available upon request; 3. Deliver the shipment, and then send us your freight bills, rate confirmation sheet and all paperwork and; 4. Get paid. We provide same-day-funding when your freight bills arrive.
We prepare all invoices on our behalf, submit them and collect payment directly. Avoid scams and other fraudulent transactions. Deal with the best financing companies only. No registration fee needed, secure your money.
At Shaw Capital Management - providing a fast, simple and affordable solution to bridge the gap between billing and collections ...
Shaw Capital Management and Financing provide same-day-funding. We can help you meet your cashflow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in full.
Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, asset based financing, accounts receivable management, and other related financial services.
Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
Based in Baltimore, Maryland. Importing into the tri-state area mostly from the far east such as China, Thailand, Taiwan and South Korea.
For your convenience, we have associate offices in Shanghai, Hong Kong, Taipei and Seoul in S Korea.
At Shaw Capital Management - No financials needed and with Flexible terms. Value of great service... Help grow your business...
Shaw Capital Management and Financing - Whether your item is big, small, fragile, difficult or oversize, no shipping assignment is too big for us.Get in touch with us today for a no obligation quote or estimate, we're here to help.Our estimates include all fees and we take care of everything with a team made up of experienced professionals.No hidden shipping costs. Let us blow away the smoke! We're open, up-front, and we include all costs in our prices.
We take care everything. We handle every step of the shipping process. If a problem comes up at any stage, we have the experience to solve it.We're passionate about what we do, and we're here to help you in any way we can.
Foreign Exchange Markets 2010 Shaw Capital Management
Foreign Exchange Markets 2010: Shaw Capital Management Korea: This is
clearly leading to a withdrawal of international funds from the
European capital markets, and is dramatically illustrated in the
widening of yield spreads in the bond markets of member countries. There
is still a general assumption that the stronger members will provide
support for the weaker members if this proves to be necessary to prevent
a default on sovereign debts.
But the uncertainties
have been increased by conflicting statements from the European Central
Bank and some politicians about the willingness to undertake such
operations, and so investors and speculators have taken evasive action,
and the euro has fallen by around 10% from its peak in early-December.
This
fall has provided support for the other major world currencies,
including the dollar; but the background situations in Japan, and in the
UK, also provide reasons for concern, and so the currency markets
remain in a very uncertain state.
Foreign Exchange
Markets 2010: Shaw Capital Management - It is likely that the
uncertainty will continue. The US economy is clearly recovering from
recession; economic conditions in Japan are very weak, and Japan appears
to face the possibility of a credit downgrade if it does
not take steps to reduce its massive fiscal deficit; and there have
already been warnings from Standard and Poor’s that the UK also faces
the possibility of a credit downgrade if there are no convincing
measures to reduce its huge fiscal deficit after the forthcoming general
election. Prospects are therefore very difficult to assess; but our
tentative conclusion is that the dollar will continue to “improve”,
helped to a considerable extent by weaknesses elsewhere; and that this
will allow market pressures to gradually subside as the global economic
recovery continues through the year.
But the possibility of a major currency crisis cannot be ignored, especially if the debt problems in Greece and other periphery countries threaten to lead to
the break-up of the single currency system in Europe. It is fortunate
therefore that the available evidence on the performance of the US
economy is more encouraging. Non-farm payrolls fell again in December by
85,000, but are expected to have increased in January; retail sales
held up well in the pre-Christmas period; manufacturing output is
improving, according to the latest report from the Institute of Supply
Management; and even the housing market appears to be recovering.
This
general situation is reflected in the first preliminary estimate from
the Commerce Department of growth at a seasonally adjusted annualised
rate of 5.7% in the final quarter of last year, a higher figure than the
market had been expecting. Most economists therefore appear to be
forecasting overall growth this year in the 2.5% to 3% range, after the
estimated fall of 2.4% last year.
Foreign Exchange
Markets 2010: Shaw Capital Management - The Fed is clearly in no hurry
to tighten its present monetary stance. The statement after the latest
meeting of its Open Market Committee was more upbeat about the prospects
for the economy; but shortterm interest rates were left
unchanged and close to zero, and there was a clear indication that they
would remain at very low levels “for an extended period”.
clearly leading to a withdrawal of international funds from the
European capital markets, and is dramatically illustrated in the
widening of yield spreads in the bond markets of member countries. There
is still a general assumption that the stronger members will provide
support for the weaker members if this proves to be necessary to prevent
a default on sovereign debts.
But the uncertainties
have been increased by conflicting statements from the European Central
Bank and some politicians about the willingness to undertake such
operations, and so investors and speculators have taken evasive action,
and the euro has fallen by around 10% from its peak in early-December.
This
fall has provided support for the other major world currencies,
including the dollar; but the background situations in Japan, and in the
UK, also provide reasons for concern, and so the currency markets
remain in a very uncertain state.
Foreign Exchange
Markets 2010: Shaw Capital Management - It is likely that the
uncertainty will continue. The US economy is clearly recovering from
recession; economic conditions in Japan are very weak, and Japan appears
to face the possibility of a credit downgrade if it does
not take steps to reduce its massive fiscal deficit; and there have
already been warnings from Standard and Poor’s that the UK also faces
the possibility of a credit downgrade if there are no convincing
measures to reduce its huge fiscal deficit after the forthcoming general
election. Prospects are therefore very difficult to assess; but our
tentative conclusion is that the dollar will continue to “improve”,
helped to a considerable extent by weaknesses elsewhere; and that this
will allow market pressures to gradually subside as the global economic
recovery continues through the year.
But the possibility of a major currency crisis cannot be ignored, especially if the debt problems in Greece and other periphery countries threaten to lead to
the break-up of the single currency system in Europe. It is fortunate
therefore that the available evidence on the performance of the US
economy is more encouraging. Non-farm payrolls fell again in December by
85,000, but are expected to have increased in January; retail sales
held up well in the pre-Christmas period; manufacturing output is
improving, according to the latest report from the Institute of Supply
Management; and even the housing market appears to be recovering.
This
general situation is reflected in the first preliminary estimate from
the Commerce Department of growth at a seasonally adjusted annualised
rate of 5.7% in the final quarter of last year, a higher figure than the
market had been expecting. Most economists therefore appear to be
forecasting overall growth this year in the 2.5% to 3% range, after the
estimated fall of 2.4% last year.
Foreign Exchange
Markets 2010: Shaw Capital Management - The Fed is clearly in no hurry
to tighten its present monetary stance. The statement after the latest
meeting of its Open Market Committee was more upbeat about the prospects
for the economy; but shortterm interest rates were left
unchanged and close to zero, and there was a clear indication that they
would remain at very low levels “for an extended period”.
Foreign Exchange Markets 2010 Part 3: Shaw Capital Management
The recent State of the Union message to Congress by President Obama included a request for the approval of a further fiscal stimulus package this year amounting to around $100 billion to help to tackle the unemployment problem, and he has also presented a $3.8 trillion budget for fiscal 2011 that is likely to maintain the overall deficit around the $1.35 trillion level expected this year.
Foreign Exchange Markets 2010 Part 3: Shaw Capital Management - Much will depend on the attitude of overseas holders, and especially on the attitude of the Chinese and Japanese authorities. For the present they seem to be prepared to maintain and even increase their dollar exposure; and if this continues, and the problems of other major currencies remain unresolved, it should be enough to allow the dollar to improve. The euro struggled to recover in the early part of January from the big fall that occurred in December; but the recovery did not last very long, and it has subsequently fallen sharply again, to leave it value against the dollar around 10% below the level in early- December.
There has been no significant change in the underlying economic background, although there is some evidence that the fragile recovery that was developing is losing some momentum.
Foreign Exchange Markets 2010 Part 3: Shaw Capital Management Korea - But there has been a serious deterioration in the financial background as the fears have increased that Greece and some other periphery countries in the euro-zone may be unable to fund their massive fiscal deficits, and service their sovereign debts. There is also considerable uncertainty about the intentions of the European Central Bank and the stronger countries if conditions continue to worsen, and so overseas holders have started to withdraw funds from the European capital markets to await developments.
The present lack of urgency at the central bank and amongst the key politicians suggests that this trend will continue, and that the euro will fall still further; but there is still some hope that the seriousness of the situation will finally produce a support operation that will ease the situation.
Shaw Capital Management News - All the available evidence continues to point to a slow, two-speed recovery in the euro-zone economy. Germany and France appear to be performing reasonably well, although there are some signs of slowdown in Germany; but Greece, Portugal, Spain, Ireland, and even Italy are struggling to escape from recession, and are expected to keep overall output in the euro-zone this year around the 1% level.
Shaw Capital Management News - There is also considerable uncertainty about the intentions of the European Central Bank and the stronger countries if conditions continue to worsen, and so overseas holders have started to withdraw funds from the European capital markets to await developments.
Retail sales remain depressed, and fell by 1.2% between October and November to reflect the continuing caution of consumers; and industrial orders in Germany rose by much less than expected in November, after a very disappointing result in October, to indicate some weakness in export prospects that had been expected to provide significant momentum to the economy.
Foreign Exchange Markets 2010 Part 3: Shaw Capital Management - Much will depend on the attitude of overseas holders, and especially on the attitude of the Chinese and Japanese authorities. For the present they seem to be prepared to maintain and even increase their dollar exposure; and if this continues, and the problems of other major currencies remain unresolved, it should be enough to allow the dollar to improve. The euro struggled to recover in the early part of January from the big fall that occurred in December; but the recovery did not last very long, and it has subsequently fallen sharply again, to leave it value against the dollar around 10% below the level in early- December.
There has been no significant change in the underlying economic background, although there is some evidence that the fragile recovery that was developing is losing some momentum.
Foreign Exchange Markets 2010 Part 3: Shaw Capital Management Korea - But there has been a serious deterioration in the financial background as the fears have increased that Greece and some other periphery countries in the euro-zone may be unable to fund their massive fiscal deficits, and service their sovereign debts. There is also considerable uncertainty about the intentions of the European Central Bank and the stronger countries if conditions continue to worsen, and so overseas holders have started to withdraw funds from the European capital markets to await developments.
The present lack of urgency at the central bank and amongst the key politicians suggests that this trend will continue, and that the euro will fall still further; but there is still some hope that the seriousness of the situation will finally produce a support operation that will ease the situation.
Shaw Capital Management News - All the available evidence continues to point to a slow, two-speed recovery in the euro-zone economy. Germany and France appear to be performing reasonably well, although there are some signs of slowdown in Germany; but Greece, Portugal, Spain, Ireland, and even Italy are struggling to escape from recession, and are expected to keep overall output in the euro-zone this year around the 1% level.
Shaw Capital Management News - There is also considerable uncertainty about the intentions of the European Central Bank and the stronger countries if conditions continue to worsen, and so overseas holders have started to withdraw funds from the European capital markets to await developments.
Retail sales remain depressed, and fell by 1.2% between October and November to reflect the continuing caution of consumers; and industrial orders in Germany rose by much less than expected in November, after a very disappointing result in October, to indicate some weakness in export prospects that had been expected to provide significant momentum to the economy.
Sunday, November 7, 2010
Foreign Exchange Markets 2010 Shaw Capital Management
Foreign Exchange Markets 2010: Shaw Capital Management Korea: This is
clearly leading to a withdrawal of international funds from the
European capital markets, and is dramatically illustrated in the
widening of yield spreads in the bond markets of member countries. There
is still a general assumption that the stronger members will provide
support for the weaker members if this proves to be necessary to prevent
a default on sovereign debts.
But the uncertainties
have been increased by conflicting statements from the European Central
Bank and some politicians about the willingness to undertake such
operations, and so investors and speculators have taken evasive action,
and the euro has fallen by around 10% from its peak in early-December.
This
fall has provided support for the other major world currencies,
including the dollar; but the background situations in Japan, and in the
UK, also provide reasons for concern, and so the currency markets
remain in a very uncertain state.
Foreign Exchange
Markets 2010: Shaw Capital Management - It is likely that the
uncertainty will continue. The US economy is clearly recovering from
recession; economic conditions in Japan are very weak, and Japan appears
to face the possibility of a credit downgrade if it does
not take steps to reduce its massive fiscal deficit; and there have
already been warnings from Standard and Poor’s that the UK also faces
the possibility of a credit downgrade if there are no convincing
measures to reduce its huge fiscal deficit after the forthcoming general
election. Prospects are therefore very difficult to assess; but our
tentative conclusion is that the dollar will continue to “improve”,
helped to a considerable extent by weaknesses elsewhere; and that this
will allow market pressures to gradually subside as the global economic
recovery continues through the year.
But the possibility of a major currency crisis cannot be ignored, especially if the debt problems in Greece and other periphery countries threaten to lead to
the break-up of the single currency system in Europe. It is fortunate
therefore that the available evidence on the performance of the US
economy is more encouraging. Non-farm payrolls fell again in December by
85,000, but are expected to have increased in January; retail sales
held up well in the pre-Christmas period; manufacturing output is
improving, according to the latest report from the Institute of Supply
Management; and even the housing market appears to be recovering.
This
general situation is reflected in the first preliminary estimate from
the Commerce Department of growth at a seasonally adjusted annualised
rate of 5.7% in the final quarter of last year, a higher figure than the
market had been expecting. Most economists therefore appear to be
forecasting overall growth this year in the 2.5% to 3% range, after the
estimated fall of 2.4% last year.
Foreign Exchange
Markets 2010: Shaw Capital Management - The Fed is clearly in no hurry
to tighten its present monetary stance. The statement after the latest
meeting of its Open Market Committee was more upbeat about the prospects
for the economy; but shortterm interest rates were left
unchanged and close to zero, and there was a clear indication that they
would remain at very low levels “for an extended period”.
clearly leading to a withdrawal of international funds from the
European capital markets, and is dramatically illustrated in the
widening of yield spreads in the bond markets of member countries. There
is still a general assumption that the stronger members will provide
support for the weaker members if this proves to be necessary to prevent
a default on sovereign debts.
But the uncertainties
have been increased by conflicting statements from the European Central
Bank and some politicians about the willingness to undertake such
operations, and so investors and speculators have taken evasive action,
and the euro has fallen by around 10% from its peak in early-December.
This
fall has provided support for the other major world currencies,
including the dollar; but the background situations in Japan, and in the
UK, also provide reasons for concern, and so the currency markets
remain in a very uncertain state.
Foreign Exchange
Markets 2010: Shaw Capital Management - It is likely that the
uncertainty will continue. The US economy is clearly recovering from
recession; economic conditions in Japan are very weak, and Japan appears
to face the possibility of a credit downgrade if it does
not take steps to reduce its massive fiscal deficit; and there have
already been warnings from Standard and Poor’s that the UK also faces
the possibility of a credit downgrade if there are no convincing
measures to reduce its huge fiscal deficit after the forthcoming general
election. Prospects are therefore very difficult to assess; but our
tentative conclusion is that the dollar will continue to “improve”,
helped to a considerable extent by weaknesses elsewhere; and that this
will allow market pressures to gradually subside as the global economic
recovery continues through the year.
But the possibility of a major currency crisis cannot be ignored, especially if the debt problems in Greece and other periphery countries threaten to lead to
the break-up of the single currency system in Europe. It is fortunate
therefore that the available evidence on the performance of the US
economy is more encouraging. Non-farm payrolls fell again in December by
85,000, but are expected to have increased in January; retail sales
held up well in the pre-Christmas period; manufacturing output is
improving, according to the latest report from the Institute of Supply
Management; and even the housing market appears to be recovering.
This
general situation is reflected in the first preliminary estimate from
the Commerce Department of growth at a seasonally adjusted annualised
rate of 5.7% in the final quarter of last year, a higher figure than the
market had been expecting. Most economists therefore appear to be
forecasting overall growth this year in the 2.5% to 3% range, after the
estimated fall of 2.4% last year.
Foreign Exchange
Markets 2010: Shaw Capital Management - The Fed is clearly in no hurry
to tighten its present monetary stance. The statement after the latest
meeting of its Open Market Committee was more upbeat about the prospects
for the economy; but shortterm interest rates were left
unchanged and close to zero, and there was a clear indication that they
would remain at very low levels “for an extended period”.
China"��s Economy: By Shaw Capital Management Korea
Chinas Economy: by Shaw Capital Management Korea - China will continue fiscal stimulus spending and its current monetary policies this year as the country has, in the opinion of the Chinese Communist Party, not fully recovered from the economic downturn.
The Chinese economy grew 8.7% in 2009, and will expand 8.5% in 2010. The consumer price index rose 1.5% in January from a year earlier, slowing from a 1.9% rise in December.
According to the State Administration of Foreign Exchange, the currentaccount surplus dropped to $284 billion, down by about a third from $426 billion for 2008, which was a record. It is the first decline in the currentaccount balance since 2001.
Shaw Capital Management Korea - Chinas exports fell last year as global demand collapsed, but the nations stimulus plan helped support imports.
Related Coverage
* Shaw Capital Management News: Washington Waxes Brazilian
Brazil provides us with an example of a rapidly developing, energy-hungry economy in the Western Hemisphere, where biofuel is a fact of life. Biofuel is also an investment imperative for energy investors and companies that want to make money in Brazil. As an important part of the #3 economy in the Americas, ethanol can\'t be ignored by the United States.
* Shaw Capital Management: Debit Policy Is Working Well In Uk & Us Part 2 Of 2
Shaw Capital Management Korea: World wide recovery appears to have firmed up. In the UK the statistics have lagged behind the anecdotal signs of the same thing. No one still believes the ONS\"��s peculiar decision to call a revised GDP drop of 0.2% in the third quarter (now revised down from an initial estimate of 0.4%).
* Shaw Capital Management News -foreign Exchange Markets 2010 Part 4
Prospects therefore remain disappointing, and are being made worse by the differences that exist between member countries. The European Central Bank therefore faces a difficult situation.
* Foreign Exchange Markets 2010 Part 3: Shaw Capital Management
The recent State of the Union message to Congress by President Obama included a request for the approval of a further fiscal stimulus package this year amounting to around $100 billion to help to tackle the unemployment problem, and he has also presented a $3.8 trillion budget for fiscal 2011 that is likely to maintain the overall deficit around the $1.35 trillion level expected this year.
China now accounts for more than 9% of global exports, a share that has been rising since the outbreak of the financial crisis and the ensuing collapse in global trade. Chinas government says it isnt banking on an export-driven future and has tried, though so far without much success, to shift the emphasis of the economy to domestic consumption and services.
According to International Monetary Fund projections, if current trends continue, Chinas share of world exports will reach 12% by 2014, a higher portion than Japan managed at the peak of its dominance in the 1980s. Chinas trade deficit with the US totalled $226.83 billion in 2009 the U.S.s largest imbalance with any nation. Mr. Obama has promised to the Congress to get much tougher with China on trade rules, including currency rates,
to ensure that U.S.
goods are not at a competitive disadvantage.
Shaw Capital Management Korea - India filed more trade complaints against China than any other nation in 2009, according to figures from Chinas commerce ministry. A balance of exports and imports is important, Indian Trade Minister Anand Sharma said in January in Beijing. Chinas trade surplus with India grew 46% in 2009 to $16 billion, probably aggravated by the weakening of the yuan against the Indian rupee.
China continues to remain the worlds largest foreign holder of the US dollar bonds which stands at US$895 billion. The second biggest holder of the US debt is Japan (US$760 billion).
Premier Wen will deliver the Government Work Report in the annual session of the National Peoples Congress (NPC), Chinas parliament, beginning on March 5. It will spell out Beijings economic blueprint for 2010 and economic growth targets.
Shaw Capital Management Korea - This years theme is balanced economic growth. The focus of new fiscal spending is set to shift away from new infrastructure investment to education, healthcare, and other pro-consumption areas. There may be a push to accelerate urbanisation outside of the large cities and in inland regions. The party will endorse measures to increase wages and income. The government has already raised the minimum wage in cities from Beijing to Guangzhou by 10% or more early this year.
The Wen cabinet has indicated that old-age benefits for peasants will be tried out this year and will be made available to all by 2015. Monetary policy will focus on bringing down credit growth to a normal rate of around 17%, from last years excessive 32%.
The Chinese economy grew 8.7% in 2009, and will expand 8.5% in 2010. The consumer price index rose 1.5% in January from a year earlier, slowing from a 1.9% rise in December.
According to the State Administration of Foreign Exchange, the currentaccount surplus dropped to $284 billion, down by about a third from $426 billion for 2008, which was a record. It is the first decline in the currentaccount balance since 2001.
Shaw Capital Management Korea - Chinas exports fell last year as global demand collapsed, but the nations stimulus plan helped support imports.
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The recent State of the Union message to Congress by President Obama included a request for the approval of a further fiscal stimulus package this year amounting to around $100 billion to help to tackle the unemployment problem, and he has also presented a $3.8 trillion budget for fiscal 2011 that is likely to maintain the overall deficit around the $1.35 trillion level expected this year.
China now accounts for more than 9% of global exports, a share that has been rising since the outbreak of the financial crisis and the ensuing collapse in global trade. Chinas government says it isnt banking on an export-driven future and has tried, though so far without much success, to shift the emphasis of the economy to domestic consumption and services.
According to International Monetary Fund projections, if current trends continue, Chinas share of world exports will reach 12% by 2014, a higher portion than Japan managed at the peak of its dominance in the 1980s. Chinas trade deficit with the US totalled $226.83 billion in 2009 the U.S.s largest imbalance with any nation. Mr. Obama has promised to the Congress to get much tougher with China on trade rules, including currency rates,
to ensure that U.S.
goods are not at a competitive disadvantage.
Shaw Capital Management Korea - India filed more trade complaints against China than any other nation in 2009, according to figures from Chinas commerce ministry. A balance of exports and imports is important, Indian Trade Minister Anand Sharma said in January in Beijing. Chinas trade surplus with India grew 46% in 2009 to $16 billion, probably aggravated by the weakening of the yuan against the Indian rupee.
China continues to remain the worlds largest foreign holder of the US dollar bonds which stands at US$895 billion. The second biggest holder of the US debt is Japan (US$760 billion).
Premier Wen will deliver the Government Work Report in the annual session of the National Peoples Congress (NPC), Chinas parliament, beginning on March 5. It will spell out Beijings economic blueprint for 2010 and economic growth targets.
Shaw Capital Management Korea - This years theme is balanced economic growth. The focus of new fiscal spending is set to shift away from new infrastructure investment to education, healthcare, and other pro-consumption areas. There may be a push to accelerate urbanisation outside of the large cities and in inland regions. The party will endorse measures to increase wages and income. The government has already raised the minimum wage in cities from Beijing to Guangzhou by 10% or more early this year.
The Wen cabinet has indicated that old-age benefits for peasants will be tried out this year and will be made available to all by 2015. Monetary policy will focus on bringing down credit growth to a normal rate of around 17%, from last years excessive 32%.
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