Month: June 2013

By www.CentralBankNews.info Here’s today’s Central Bank News’ link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don’t miss any important news.

By www.CentralBankNews.info     Poland’s central bank cut its policy rates by a further 25 basis points, increasing this year’s rate cuts to a total of 150 basis points, and said it would explain its decision at a press conference later today.
     The National Bank of Poland’s (NBP) benchmark reference rate will be cut to 2.75 percent, the lombard rate to 4.25 percent, the deposit rate to 1.25 percent and the rediscount rate to 3.0 percent, the NBP said in a statement.
     In May, when the NBP also cut by 25 basis points, the central bank’s monetary policy council said future policy decisions would depend on new data and the likelihood of inflation remaining “markedly below” the central bank’s target.
    Poland’s inflation rate fell to 0.8 percent in April from 1.0 percent in March, continuing the steady decline seen since June 2011 when it hit 5.0 percent.  
    The NBP targets inflation of 1.5 to 3.5 percent with a 2.5 percent midpoint. Minutes from the May meeting showed that most members of the 10-member policy council believe inflation will remain below the central bank’s latest forecast for this year of 1.6 percent and some council members believe this justifies further monetary easing.

    Poland’s Gross Domestic Product expanded by an annual 0.5 percent in the first quarter, down from 0.7 percent in the fourth quarter. Growth in 2012 slowed to 1.9 percent from 2011’s 4.5 percent and the central bank has forecast growth slowing to 1.3 percent this year.
    As growth slowed last year, the NBP started cutting rates in November – a move that was widely criticized as being too late to counter the recession in the euro area.
   After cutting rates by 150 basis points, the central bank froze rates in April to evaluate the impact of its cuts and then started easing its policy again in May.

   www.CentralBankNews.info

By HY Markets Forex Blog

Euro remained unchanged at $1.3082 against the US dollar. According to the reports from the Markit Economics, Germany’s services PMI slipped by minor 49.7 in the month of May from the previous rate 49.6 in the month of April.

Euro slipped 0.20% against the Japanese yen at 130.53 yen.

France PMI remained the same as the previous record of 44.3 in May, while Italy’s PMI worsened to 46.5 in May and Spain’s final services PMI increased to 47.3 points, compared to previous record of 44.4 in April. Germany is expected to see some improvement and pick up by an approximate 47.5.

Spain’s final manufacturing PMI increased to 48.1 in May, from previous record of 44.7, while Italy’s final manufacturing PMI edged up from previous record of 45.8 to 47.3 and the French manufacturing PMI improved and rose to 44.4.

Euro zone area as a whole manufacturing activity increased to an unexpected 48.3 in May.

European Central Bank’s President Mario Draghi stated on Sunday that the monetary union was at a much steady condition.

“The economic situation in the euro area remains challenging but there are a few signs of a possible stabilization, and our baseline scenario continues to be one of a very gradual recovery starting in the latter part of this year,” he said.

The post EUR/USD: Euro weak after German PMI appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

By HY Markets Forex Blog

Shares in Asia dropped on Wednesday as stocks declined, after the Prime Minister Shinzo Abe revealed new policies and long-term growth prospects to boost the growth of the economy. From the stock market and energy market to agriculture, tax breaks, foreign investment and capital.

Tokyo’s Nikkei 225 slipped 2.45% to 13,202.38, while Topix slipped 1.91% to 1,103.98, both as of 5:21am GMT.

The Hang Seng dropped 1.02% to 22,057.77, while China’s Shanghai Composite slipped 0.16% to 2,268.05 and South Korea’s Kospi index slipped by 1% .

Hong Kong’s property company, Henderson Land had the biggest lost in shares of 12.91%, while Aia Group slipped by 2.82%.

The new strategies from the Japanese prime minister are still uncertain about the effect of the monetary stimulus on the risk assets.

“Now is the time that Japan becomes the driving force of the global economy,” Prime Minister Shinzo Abe stated.

“The goal of Abenomics is to spread the fruit of the growth in the real economy to hard workers, not a shortsighted money game,” Abe added.

The Chinese stocks declined at the early hours of the trade, while investors and the markets continue to raise concerns and worries regarding the possibility that the U.S Federal Reserve (Fed) would ease off on the plan of bond purchases.

Fed Bank of Kansas City President Esther George stated that the central bank should slow the bond-buying program, so did the San Francisco President John Williams, as she also mentions an adjustment and slowdown in bond purchases later this summer.

Analysts at Deutsche Bank and Goldman Sachs Group predicted that the Fed could begin to reduce its stimulus program later this summer.

The post Shares in Asia declines after Abe unveils new policies appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

By MoneyMorning.com.au

If graphene is new to you, the best way to describe it is that it’s a totally new, man-made material that will turn the world on its head.

Although graphene is about as high-tech as it comes, it also sits in my camp as it’s derived from graphite, a commodity mined in a very small number of locations globally.

What makes graphene so exciting?

Well for one thing, graphene conducts electricity better than anything, including copper, silver or gold. It has been used to make microprocessors that are orders of magnitude faster than silicon based ones. Because it’s also not rigid, it can be used to make large hi-definition screens that can be folded away in your pocket.

Graphene is also stronger than anything else known to man. A sheet just one molecule thick is totally invisible, yet strong enough to support the weight of a newborn baby.

And a sheet the width of Gladwrap could support an elephant wearing stilettos! (So they say anyway…I look forward to seeing the photographic evidence…)

I can’t help thinking that if it’s that strong, it’s just a matter of time before the world of competitive sailing adopts graphene to construct ultra-lightweight, unbreakable sails.

Another property of graphene is that it can be engineered at a microscopic scale: nanotubes to make microscopic robots and so on. The applications are endless. As you can imagine, scientists are queuing up to research the possibilities everywhere, and immense grants are being thrown at the research.

So every week a new discovery comes along. Recently it was for using graphene as a water filter to cheaply and easily desalinate water. Apparently it can be done for 10% of the cost of current tech.

Then this week we heard that graphene can make light camera sensors so sensitive, that they make the one in your digital camera look like it’s from the Stone Age.

The graphene camera will be more than a thousand times more sensitive to light than current tech. So there will be no more underexposed shots in dark environments.

But it goes well beyond that. Think about high-resolution satellite imagery or space telescopes, as graphene sensors can pick up electromagnetic radiation well outside the spectrum of visible light too.

Even though most of these potential applications are at R&D stage, it’s inevitable that between them they will generate a commercial level of demand for the source of graphene. This is mined graphite.

At the moment the traditional use for graphite is constructing steel-making equipment. Not so exciting admittedly, but steady work.

The current growth area for demand is in lithium ion batteries, which is driving a 25% annual growth in demand.

But it’s just a matter of time before the graphene researchers hit on something that will add significantly to global graphite demand.

When they do, they’ll find supply is already tight. A major gap in the market is predicted in three years. Demand could be 50% bigger than current supply.

And that’s assuming current supply is steady. The reality is that most supply comes from China, where not only are mines running low and being shut down, but it’s getting more expensive and harder to export.

There are a few graphite stocks on the Aussie market, but only one stands out. Twelve months ago, I tipped a graphite explorer to leverage this situation. At the time it was early, but it looked like the exploration project had potential.

Then their first drill results were off the charts. Fast forward to today, and they have just announced their deposit contains more graphite than all other known deposits combined. The stock is up 115% since I tipped it, and has much further to go.

They are in a great position to meet market needs for decades ahead. And that also means that any breakthroughs in graphene research won’t face supply issues either. 

When technology and the resource sector cross paths to create something entirely new, there can be a big investment opportunity in it. Fracking technology and shale gas is a good recent example.

Dr Alex Cowie
Editor, Diggers & Drillers
Join me on Google+

From the Port Phillip Publishing Library

Special Report: How to Buy Better Stocks

Daily Reckoning: Big Trouble in the Australian Economy… Everybody Relax

Money Morning: After the Correction: Gold Stocks Set for the Biggest Gains

Pursuit of Happiness: Australian Housing: Neither a Bull nor a Bear

By MoneyMorning.com.au

The French revolution, the Arab Spring, and the peace & love revolution of the hippy generation – they all redefined their nations’ histories.

But history-defining revolutions don’t just start on the street.

They begin in technology research departments as well.

The technology that has become standard in the last ten years has been nothing short of revolutionary.

The internet, the personal computer, and the mobile phone; think how much each of them has changed your life.

The exciting thing is that technology never sleeps.

And the new technology emerging today will change your world as much in the next ten years, as current tech did in the last ten. It’s an exciting prospect.

But the really exciting thing is this: not only will you benefit from this technological revolution, but if you play your cards right, you can personally profit from investing in it too…

In the office, I may be the resource guy. However, tech investing is something I am passionate about all the same.

For example, one Aussie company I have invested in personally will enable asthma sufferers to use their smart phones to monitor and better control their symptoms.

It’s a very exciting area to be invested in. Not only can it be profitable, but you also become part of something that may genuinely improve the quality of life for a large number of individuals globally.

Similar tech already allows diabetics to measure, record and track their blood glucose using a gadget linked to the smart phones. With 1.3 billion smart phones in use today, and projected to hit two billion within two years, this trend of ‘mobile health’ applications is growing fast.

This is just one aspect of the tech space. And whether it’s bionic eyes, molecular technology, or fully automated vehicles, your regular editor Kris Sayce, and our new tech analyst Sam Volkering, have been busy researching the exciting tech space for the last few months.

The launch is not far away, and there’s a lot of buzz about ‘RevTech’, as we call it in the office. [Ed note: Keep your eyes open, details on the launch date for Revolutionary Tech Investor will hit your inbox soon.]

It’s an exciting time to be an investor in the technology space. Things are moving faster than ever, and new opportunities come up all the time. I look forward to seeing what Kris and Sam come up with in Revolutionary Tech Investor. 

Dr Alex Cowie
Editor, Diggers & Drillers
Join me on Google+

From the Port Phillip Publishing Library

Special Report: How to Buy Better Stocks

Daily Reckoning: Big Trouble in the Australian Economy… Everybody Relax

Money Morning: After the Correction: Gold Stocks Set for the Biggest Gains

Pursuit of Happiness: Australian Housing: Neither a Bull nor a Bear

AUDUSD stays in a trading range between 0.9528 and 0.9791. Key resistance is now at 0.9791, as long as this level holds, the price action in the range could be treated as consolidation of the downtrend from 1.0582 (Apr 11 high), one more fall to 0.9300 area is still possible after consolidation. On the upside, a break above 0.9791 resistance will indicate that lengthier consolidation of the downtrend is underway, then further rise to 0.9850 – 0.9900 area could be seen.

Daily Forex Forecast

By MoneyMorning.com.au

1. A Future Take on the Doctor’s House Call

   Cut your finger off with a knife in the kitchen?

   By the time an ambulance arrives, you get to the hospital, get looked at, fixed, and complete all the paperwork; it’s a long time between the accident and going home.

   But what if you had a surgeon at hand, at home? With the accuracy of a surgeon but better because human error is taken out of the equation. We’re talking a robotic doctor in your home.

   You could simply sit down with your now removed finger and let the robotic device do its work. Scan your injury, apply a local anaesthetic, assess the damage and then go about repairing it.

   Reconnect the blood vessels, fuse the bone together, stitch up the skin, disinfect the wound and bandage it up for you. This is about the capability of a ‘hospital in your home’.

   Robots are already used in surgeries. They’re more efficient and significantly more accurate than humans. Like many technologies, the bigger picture is to enable them at a consumer level.

   Your own home could provide you with the medical assistance needed. Cutting out delays, ambulance response times, tired doctors, busy emergency departments and infection riddled hospitals, having capability at home for minor accidents and operations will become a normal practice before you know it.

2. Penthouse Suite at the Orbital Hotel and a Day Trip to the Moon

   Space is no longer the final frontier. The solar system, the universe, it’s all up for grabs in exploration. Soon a team of eight will be sent on a one way mission to Mars.

   By the end of this year we’ll have space tourists by the rocket-load entering the boundary of space. There are at least four different space tourism companies willing and almost able to send ordinary (though very well cashed up) people into space.

   But instead of just going to space and 25 minutes later landing back down on earth, what about going up into space and docking with your hotel for a space stay of a week or two? Or taking a side trip to the moon in a reusable and self-launching rocket?

   Bigelow Aerospace is investing $500 million into private space stations to create somewhere you can go to experience the joys of zero gravity in your own luxury villa.

   And with companies like SpaceX developing reusable multiple launching rockets like the Grasshopper, we’re not too far away from the time when you’ll be able to take a Virgin Galactic shuttle to the Bigelow Space Hotel and a SpaceX trip to the moon for a look around.

3. Forget Angry Birds, This App Could be a Life Saver

   It’s genuinely the stuff of Star Trek.

   Recall Mr Spock holding a small device to the body of an injured Starfleet person, to then announce all injuries and ailments with amazing accuracy? This is reality now. One device to diagnose serious injury or illness.

   The FDA is already in the process of approving at least two different personal devices to monitor your health and diagnose you with precise medical accuracy.

   Just hold the device to your head; it will check your heart rate, temperature, blood oxygenation. You can do a urine analysis if need be, a blood check, a breath analysis. All in a device no bigger than your phone. In fact, it’s an accessory to your smartphone, because the associated app helps in the diagnosis of your illness.

   Whether you’re sick, your child is sick, it doesn’t matter. The medical tricorder is something that everyone will carry around. You’ll be able to monitor your own health on a daily basis with unprecedented accuracy. You’ll know you’re getting sick well before you feel the symptoms.

   A $10 million incentive from Qualcomm is helping get the tricorder to final production, and it’s safe to say within the next 12 months there will be a fully commercialised tricorder available. One simple piece of technology to help keep you fitter, healthier and safer.

I hope you’ve enjoyed this take on the future over the past few days. Put simply, the future is something you should look forward to, not dread. Because the technological progress you’ve seen in recent years is just the beginning of what we believe could be one of the biggest lifestyle advances in human history.

If you’ve got your own view of what the future could look like, and the technology we’ll use, why not drop a line to [email protected] and type ‘My Revolutionary vision for the future‘ in the subject line.

Sam Volkering.
Editor, Money Morning
Join me on Google+

From the Archives…

Keep One Eye on Resource Stocks and the Other on the NASDAQ
31-05-2013 – Kris Sayce

Getting in on the ’99 Cent Craze’ with Crowdfunding
30-05-2013 – Sam Volkering

Buyer Beware: Japanese Government Bonds are Moving
29-05-2013 – Murray Dawes

The Best Contrarian Play on Gold I’ve Ever Seen…
28-05-2013 – Dr Alex Cowie

A Revolution in the Share Market is Coming…
27-05-2013 – Kris Sayce

Bubbling Higher Or Headed For A Bust?

In today’s short educational trading video, I’m going to share with you an interesting set-up I see in SodaStream (NASDAQ_SODA).

Here is some fundamental background on SodaStream, courtesy of Wikipedia.

SodaStream is the maker of a consumer home carbonation product based on the principles of making a carbonated drink as originally invented by Guy Gilbey in 1903. The device allows users to take ordinary tap water and carbonate it to create soda water (or carbonated water) to drink. With the addition of one of over 100 different types of concentrated syrups and flavorings produced by Sodastream, owners can create carbonated beverages. After the company merged with Soda-Club in 1998, it was relaunched with an emphasis on healthier drinks. It went public on the Nasdaq stock exchange in November 2010. Sodastream is currently headquartered in Israel, and has 13 production plants.

Judging by the feedback in a private sneak preview of today’s video, you won’t want to miss this video.

I hope you enjoy the video and more importantly learn how to use the technical tools mentioned so you can add them to your trading arsenal. For more information on the tools I use in this video, click here to visit MarketClub.

Enjoy the video and every success in your own trading,
Adam Hewison
 

By The Sizemore Letter

“Sell in May” would have been terrible advice for stock investors in 2013.  The S&P 500 tacked on about 4% in the month, even if the last week and a half was a little rough.

But for investors in REIT and MLP shares—which up until this month were two of the best-performing asset classes—have suffered something of a bloodletting.  The MLP sector, as measured by the JP Morgan Alerian MLP ETN ($AMJ) is down 6% from its May 20 close, and REITs, as measured by the Vanguard REIT ETF ($VNQ), is down more than 8%.

Looking at individual securities, the numbers get worse.  Realty Income (O), National Retail Properties ($NNN), and Retail Opportunities Investment Corp ($ROIC)—three solid REITs I hold in my Dividend Growth Portfolio—are down 15%, 14% and 10%, respectively.  Martin Midstream ($MMLP), a  high-yielding MLP I hold in the same portfolio, is down by just under 10%.

Utilities, telecoms and other “widows-and-orphans-appropriate” stocks have also taken heavy losses.

For stocks that were purchased precisely for their low-volatility and high-income properties, it’s frustrating to see that much value evaporate overnight, particularly when the broader market is holding up well.  But as investors, it doesn’t do us a lot of good to dwell on our frustrations.  We have to look forward and allocate our capital based on the options in front of us.

So, what are our options?  Is the bull market in dividend paying stocks over?

No.  REITs, MLPs and other income-oriented investments have vastly outperformed the market in recent months, and they were due for a much-needed correction.  “Boring” sectors cannot lead a broad bull market forever; eventually cyclical, economically-sensitive need to take leadership.  And that is what appears to be happening today.  Daimler ($DDAIF) and Cummins ($CMI), two industrial stocks held in some of my more aggressive portfolios, have been performing well, as have my Big Tech dividend payers Intel ($INTC), Microsoft ($MSFT) and Cisco Systems ($CSCO).

For the remainder of 2013, I see these stocks being in a sweet spot for income investors.  All pay respectable dividends, yet all should also benefit from a rotation from defensive sectors to growth sectors.

And what about REITs and MLPs?

I’m not quite ready to give up of those just yet.  The recent selloff was due to fears that the Fed would be unwinding its quantitative easing programs, and that bond yields would soar as a result.  But as the experience of Japan has proven, bond yields can stay much lower for much longer than most investors expect during a prolonged period of deleveraging.

Could the 10-year Treasury rise to, say, 2.5%-3.0% over the course of the next 12-18 months?  Absolutely.  But I would consider that the high-end of a long range that I expect to persist for the remainder of this decade.

In the meantime, both REITs and MLPs stand to benefit from durable trends that should continue irrespective of what the Fed does.  The American property market continues to heal, and the domestic energy boom continues to provide ample demand for pipeline assets.  Under even modest expectations, REITs and MLPs should be able to grow their cash distributions at a rate well in excess of inflation.

As you build your portfolio for the rest of 2013, overweight cyclical dividend payers, particularly those in the tech sector.  But make sure to save room for REITs and MLPs and be prepared to buy on any continued weakness.

Sizemore Capital is currently long every security mentioned. This article first appeared on MarketWatch.

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