Source: Tom Armistead of The Energy Report (9/26/13)

http://www.theenergyreport.com/pub/na/for-oil-and-gas-producers-its-all-about-assets-gpor-gst-syrg

The industry is focusing on liquid-rich plays, but some gassier regions offer solid returns, asserts Joel Musante, senior research analyst for oil and gas exploration and production with Euro Pacific Capital. With oil trading over $100 per barrel, liquids-rich plays are most attractive. Prices may pull back, even though the surge in merger and acquisition activity suggests that some companies might believe that these price levels are here to stay. Ultimately, producers must consider development costs as well as product types and margins to enhance returns. In this interview with The Energy Report, Musante discusses oil and gas companies with the right combinations.

The Energy Report: Joel, how do you identify winners in the crowd of junior oil and gas companies?

Joel Musante: I look for companies with an attractive property base, good dealmakers and resilient leadership. It’s important to have a good land position where a company could drill commercially economic wells. Many smaller E&Ps have limited financial resources, so it is also important not to overpay for properties. A poorly structured, overleveraged balance sheet could be the death knell for a junior oil and gas company. Good dealmakers usually find creative ways to buy quality properties at attractive terms. I think it is also important to have a resilient management team that can stick it out through the rough patches, which seem to be inevitable in the oil and gas industry.

TER: In the past you’ve identified keys to an oil and gas company’s success, such as valuable properties, access to funding and strategic leadership. How do those criteria rank in importance to you?

JM: It is hard to rank which criteria will be most important for a company’s success, because it depends on external factors as well. Properties are very important, but I’ve seen strong management teams do pretty well with a mediocre property base and unfocused management teams fail with good properties. Access to funding is critical in many cases to growing production and reserves, but companies generally build their investor base up over time.

TER: Are there any innovations in technologies that you find especially interesting?

JM: The improvements in horizontal drilling and hydraulic fracking is the most recent innovation that has changed the landscape of the oil and gas industry, making it possible to develop oil and gas deposits in shales and other tight formations. But this is old news at this point. Currently, most oil and gas companies utilizing this technology are trying to improve these operations in their specific development areas by finding the optimal frack design. The ultimate goal is usually to optimize returns by improving recoveries, increasing production rates and lowering costs. Some investors may find a discussion boring about the optimal number of frack stages or whether to use ceramic or sand-based proppant, but that’s where we are at now.

TER: Is there a sweet spot for the oil and gas mix in the companies’ proved reserves?

JM: When you’re talking about reserves, liquids are generally better than gas because the margins are better. However, when deciding on the best place to drill a new well, you also have to take into account the investment cost. In this case, it seems like the wet gas plays or volatile condensate/oil plays earn the highest returns. These parts of the reservoir typically have a lot of energy, resulting in higher production rates and better recoveries. This will drive the economics of the well even though the product mix may include more NGLs and natural gas, which realize lower prices than oil. By drilling in the oil window, the price realizations may be higher, but production rates and recoveries are often less. In the natural gas window, production rates and recoveries could be high, but price realizations are low.

TER: West Texas Intermediate (WTI) has ranged from $100 per barrel ($100/bbl) to $110/bbl since early July, while natural gas has remained stuck below $4 per million British thermal units ($4/MMBtu). Is this the new normal for oil and gas?

JM: I model for $90–100/bbl oil prices and $3–4/MMBtu gas prices on a going-forward basis. Obviously, the prices could go above that, but I think we lack the demand to keep prices much higher than that. If prices go below that, I don’t see them staying there for very long because development would likely fall off at lower prices.

TER: What struck me about the oil price was that it was very clearly confined within the range of $100–110/bbl since July, after lingering below $100/bbl for months before that. I’m wondering whether it’s going to stay that high, or is there something that’s going to pull it back down?

JM: There could have been a number of factors that contributed to the surge in prices. Some pipelines came online and alleviated the supply bottleneck in the mid-continent region of the country. This narrowed the gap between West Texas Intermediate and Brent prices, which had been trading at above $100/bbl for some time. The WTI price benefited from the new pipelines, increasing to above $100. The push for U.S. involvement in the civil war in Syria was also a contributing factor. Oil tends to be viewed, I think, as a hedge against the inflating dollar and concerns about the Federal Reserve’s quantitative easing policy.

TER: How are these prices affecting the earnings of the companies you cover? Are oil-rich companies doing better than companies with more gas reserves?

JM: I would say that in general, oil-rich companies are doing better. Many gas companies have already moved to a liquid development strategy by acquiring and developing properties in liquid-rich plays. But there are still some attractive places to drill for natural gas, where a company can earn high returns. It will usually take very low well costs and/or very high production rates and recoveries.

TER: What is Euro Pacific Capital forecasting for prices in the fourth quarter?

JM: I’m generally using about $3.50/MMBtu for natural gas and for oil my price deck going forward is $90/bbl. I think these levels are sustainable.

TER: The dollar’s strength has been buffeted by news from the Fed, including Larry Summers’s withdrawal and the decision to continue quantitative easing. How is the dollar’s strength influencing oil and gas prices?

JM: Oil trades inversely to the strength of the dollar. Generally, if the dollar weakens then oil prices increase and vice versa. One trend we have seen recently was an increase in M&A activity in the oilier plays like the Bakken and Eagle Ford. While not necessarily related to a weaker dollar, I think it does suggest that oil and gas producers have taken a more bullish stance on commodity prices.

TER: Has Gulfport Energy Corp. (GPOR:NASDAQ) continued its strong showing in the Utica?

JM: Yes, it continues to drill very solid wells that are consistent with what we expect from the play.

TER: Your research has indicated that pipeline infrastructure is inadequate for some of the plays where Synergy Resources Corp. (SYRG:NYSE.MKT) and Gulfport Energy are working. Is this a serious crimp in their future or just a temporary setback?

JM: No, I don’t think it is a serious crimp. I believe it is more a result of the quality of the oil and gas plays, at least in the case of Gulfport and Synergy. Gulfport and other companies see great potential in the Utica play in Eastern Ohio, given the early well performance in the play. As a result, these companies have implemented aggressive development plans in the regions, even though Ohio historically has not been a major oil and gas producer and lacks pipeline and processing infrastructure. Infrastructure in the Wattenberg Field in Colorado was insufficient to handle the acceleration in development that was caused by the success of horizontal drilling and hydraulic fracking. Synergy and other companies operating in the Wattenberg Field may experience some temporary setbacks, but horizontal development of the play has enhanced their portfolios considerably.

TER: There’s some softness now in NGL prices because so much NGL has been produced. How is that affecting your companies?

JM: Many companies are drilling in NGL-rich areas, so that heightened production resulted in a price correction. Companies can still drill economic wells, but the price that they get for the NGLs is just not as high, so you have to take that into account. As it turns out, in many cases, even though it might lower your returns, the returns are typically still attractive enough to justify the drilling of the well.

TER: You have buy recommendations for Gulfport Energy, Synergy Resources and Gastar Exploration Ltd.(GST:NYSE). Can you talk a little bit about each of them and what is causing you to issue a buy?

JM: Gulfport has 136,000 acres in a lease hold in what is probably the sweet spot of the Utica play, which means the company should enjoy years and years of drilling opportunities in one of the more economic places to drill in North America. Its acreage is very concentrated, with an average working interest of about 95%. The company will be a likely takeover target, once development is further along.

Synergy is more or less a pure-play Wattenberg name. The Wattenberg is one of the premier oil and gas plays. Some leading operators have estimated that 36 wells could be drilled on a spacing unit, which is quite a large number. I don’t know of any other play where someone has made such a claim. A deep inventory of high-return well prospects is driving the underlying value of the stock. For a small company, Synergy has a strong management team. They’re not promotional and they make good decisions.

Gastar Exploration Ltd.’s acreage position in the Marcellus is very economic even though the product mix is gassy. Additionally, the company built a significant leasehold position in a new play in Oklahoma called the Hunton Limestone oil play. It is still early days, but the Hunton play could be a game changer for Gastar. Management has pulled off some pretty impressive acquisitions.

TER: Can you offer us any parting thoughts on the energy markets and how to play them in the current circumstances?

JM: The summer driving season is behind us and we’re going into a lower-demand season for oil. Additionally, the geopolitical issues in Syria have quieted down, so I’d be a little cautious about a price correction for oil. We may see a pullback there.

TER: All right, Joel, thank you very much for your time.

Joel Musante is a Senior Research Analyst covering the oil and gas exploration and production sector with Euro Pacific Capital. Musante has nearly 15 years of research experience through research analyst positions with W.R. Huff Asset Management; Dresdner Kleinwort Wasserstein; Ferris, Baker Watts, Inc., and C.K. Cooper & Co. In 2011 he was ranked No. 1 in The Wall Street Journal “Best on the Street” analyst stock-picking survey for the oil and gas sector. Musante holds a Master of Business Administration degree from the University of Rochester Simon School of Business and a Bachelor of Science degree in geology and geophysics from the University of Connecticut.

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DISCLOSURE:

1) Tom Armistead conducted this interview for The Energy Report and provides services to The Energy Report as an independent contractor. He or his family owns shares of the following companies mentioned in this interview: None.

2) The following companies mentioned in the interview are sponsors of The Energy Report: None. Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment.

3) Joel Musante: I or my family own shares of the following companies mentioned in this interview: None. I personally am or my family is paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: Euro Pacific Capital has performed investment banking services for Gulfport and Synergy within the past 12 months, and expects to receive or intends to seek compensation for investment banking services from Gulfport, Synergy and Gastar Exploration within the next three months. Euro Pacific makes a market in Gulfport Energy and Synergy Resources. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.

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By WallStreetDaily.com

The launch of the fifth installment to the Grand Theft Auto videogame series was met with an insane level of demand.

Sales reached $1 billion in just three days. And according to Cowen & Company analyst, Doug Creutz, sales have likely reached 15 million units worldwide in just a week.

Creutz also believes that the game could go on to sell upwards of 25 million units by the end of the year.

The record numbers indicate that demand for console games is still running strong.

However, as more consumers scoop up mobile devices, it’s creating severe competition in the sector.

You see, over the past five years, the percentage of U.S. households using wireless devices for gaming jumped almost 40 percentage points – far outpacing console games.

Indeed, as throngs of people lined up outside videogame retailers last week, Apple (AAPL) stores also saw record-long lines waiting for the launch of the iPhone 5s and 5c.

What’s more, mobile gaming developer GungHo’s market cap blew past Nintendo’s earlier this year. And its mega-hit, Puzzles and Dragons, boasts almost 20 million downloads in Japan.

Needless to say, this underscores the increased competition mobile devices pose for traditional consoles.

So how are console makers responding to the challenge? Well, according to Sony’s (SNE) Japan Marketing Manager, Mayako Fukunaga, it’s important to adapt to the new market climate and give consumers what they want.

“There are a lot of devices out there. Some people want to use the PlayStation, or maybe also their smartphone for games,” says Fukunaga. “If you can’t meet the customers’ needs, you are limiting their choices. We want to support people who are serious about enjoying their games or any kind of visual content, no matter where they are.”

Both Sony and Microsoft (MSFT) are also meeting the demand head on.

Microsoft has come up with the Xbox SmartGlass ­– an app that allows gamers to connect their Xboxes to smartphones and PCs to blur the lines between consoles and mobile gaming. And Sony is supporting the development of indie mobile games like Octodad, designed by a group of students at a university in Chicago.

The post Console Makers Respond to the Rise of Mobile appeared first on Wall Street Daily.

Article By WallStreetDaily.com

Original Article: Console Makers Respond to the Rise of Mobile

Google searches offer an insightful glimpse into economic expectations

By Elliott Wave International

The last thing on the minds of most people is deflation. It’s easy enough to determine that with a quick quiz — and that quiz is found in the just-published Elliott Wave Theorist.

In this July-August Theorist, Robert Prechter uses Google searches to make a point about deflation:

“When I typed ‘Inflation for 2013,’ there were 47,700 results. On March 13th, when I put this slide together, I also typed in “Deflation for 2013.” How many results do you think I got?”

Prechter reveals that the answer is 5. (You could have googled it yourself, but we don’t want you to have to take the time.) He then goes on to search other phrases pertaining to deflation and inflation, which you can learn more about via a risk-free read of the Theorist. Just know that the number of Google searches for “Deflation for 2013” was nowhere near the number of searches for “Inflation for 2013.”

Get a FREE 2-page sample of Robert Prechter’s Elliott Wave Theorist.

Yet, consider that the state of the economy remains precarious. For one thing, Detroit just became the largest American city ever to file for bankruptcy. But that’s not the half of it.

An MSN Money article points out that municipal financial problems extend far beyond Detroit to cities like Chicago, Newark, New Haven, Baltimore and Louisville:

10 cities selling stuff to get by

When your finances are in trouble, sometimes you have to unload precious items to survive. For some cities, that means parting with sailboats, landmark buildings and even Santa Claus. (MSN Money, July 22)

Here’s some irony: Almost no one expects deflation, yet consider this June 14 Marketplace.org headline: “Millennials face uncertain future with part-time work.” In other words, many young adults want full-time jobs but can find only part-time positions. This employment scenario is more in line with economic contraction than expansion.

This contrast between reality and the apparent lack of concern about deflation can be seen most remarkably in Europe:

Eurozone business still going backwards (CNNMoney, May 23, 2013)

This article quotes a market firm’s chief economist, “Weakness remains broad-based, with Germany stagnating, France contracting steeply and the rest of the region also clearly entrenched in an ongoing downturn of worrying severity.”

But this CNNMoney article barely scratches the surface of why Europeans and U.S. citizens alike should prepare for the most devastating of all financial trends — deflation.

In a recent Theorist, Prechter writes: “Deflation nearly always manifests as a contraction in the amount of outstanding debt. Let’s look at where we are in terms of debt in Europe and the United States. …”

See what Prechter presents to subscribers of The Elliott Wave Theorist with no obligation for 30 days. The just-published September issue is packed with insights you won’t see anywhere else. Preview what’s inside and learn how to get your risk-free review.

By The Sizemore Letter

It’s been a rotten year for emerging markets.  The iShares MSCI Emerging Markets ETF (EEM)—the most popular way for investors to play the sector—is down 13% year to date.  And several individual country funds have gotten hit a lot harder.  The iShares MSCI Brazil ETF (EWZ) is down 23% year to date,  and the iShares MSCI Turkey ETF (TUR) is down a whopping 26%.

Ouch.

A slowdown in China, a political crisis in Turkey, and the Fed’s “taper scare” combined to mix a lethal cocktail for the sector.  But now that the dust has settled, are emerging markets a buy?

Yes.  With American stocks looking close to fully-valued, investors are shifting their attention to developed Europe, where valuations are nearly 40% lower.  And as risk appetites return, I expect them to turn to emerging markets next, where pricing is even better.  As measured by their price/book ratios, emerging markets as a group trade for less than half their pre-2007 valuations.

The question is not “whether” to buy emerging markets but “how.”  As a general rule, I’ve avoided the iShares MSCI Emerging Market ETF because I consider it far too heavily weighted to developed markets such as South Korea and Taiwan and to companies that get a large chunk of their revenues from exporting to America and Europe.  Its underlying index recently started to include Greece.

Yes, Greece.  While I agree that Greece shouldn’t be classified as a developed market, I don’t see a lot of “emerging” going on there.

Other broad ETFs give better access to the emerging market consumer.  One that I use in my asset allocation portfolios is the Emerging Global Shares Emerging Market Consumer ETF (ECON).  The underlying companies get about 90% of their revenues from selling within their home markets and to other emerging markets.

I continue to recommend ECON as a long-term holding.  But there are other ways to slice and dice the emerging markets universe, such as by dividend yield.  James P. O’Shaughnessy, the author of What Works on Wall Street, wrote a paper earlier this year that found that a strategy of buying high-dividend emerging market stocks outperformed the broader emerging market universe by 10.6% per year.  Yes, you read that correctly.  10.6% per year.

If you’re looking for an ETF solution, Emerging Global Shares offers one: the EG Shares EM Dividend High Income ETF (EMHD).  The portfolio has an eclectic mix of emerging-market stocks you’re not likely to find anywhere else, such as Bangkok Expressway (BKENF), Telecom Egypt, and Ford Otomotiv Sanayi, Turkey’s local Ford subsidiary.  In total, it holds the 50 highest-yielding stocks in the FTSE Emerging All Cap ex Taiwan universe, equally weighted, and is expected to sport a dividend yield around 8% (the shares only recently started trading, so there is no actual dividend history as of this writing).

As attractive as EMHD is as a portfolio diversifier, it’s too thinly traded to buy at this time.  Its average daily trading volume is a tiny 4,350 shares.

A more liquid option is the WisdomTree Emerging Markets Equity ETF (DEM).   DEM is based on a fundamentally weighted index that is comprised of the highest dividend yielding stocks selected from the WisdomTree Emerging Markets Dividend Index.  At current prices, DEM yields 4.2% in dividends.

DEM is a little too heavily allocated to basic materials for my liking, and its top two holdings—which collectively make up more than 10% of the portfolio—are Russian oil and gas companies.  Still, if nothing else, DEM offers a way to get non-traditional exposure to emerging markets and access to companies you’re not going to get in the more popular emerging market funds.

Disclosures: Sizemore Capital is long ECON. This article first appeared on MarketWatch.

Charles Lewis Sizemore, CFA, is the editor of the Sizemore Investment Letter and the chief investment officer of investments firm Sizemore Capital Management. Click here to learn about his top 5 global investing trends and get your copy of “The Top 5 Million Dollar Trends of 2013.”

This article first appeared on Sizemore Insights as Choosing the Right Emerging Market ETF

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London Gold Market Report
from Adrian Ash
BullionVault
Thurs 26 Sept 09:10 EST

The WHOLESALE price of gold and other precious metals touched 4-session highs Thursday morning in London, after US Treasury secretary Jack Lew warned yesterday that the government will run out of money in just 3 weeks’ time if Congress doesn’t approve new debt.

 World stock markets ticked lower with major government bonds as the US Dollar rose on the FX market.

 Gold touched $1339 per ounce, and silver hit $22.11 before retreating 1.5%.

Industrial commodity prices ticked higher, but European Brent crude oil held below $110 per barrel.

 “Extraordinary measures will be exhausted no later than October 17,” Lew wrote to House speaker John Boehner, urging Congress to raise the United States’ $16.7 trillion debt limit.

 Estimating that the Treasury will have only $30 billion in hand by that deadline, Lew said net expenditure can reach $60bn per day.

 That’s equal to $191 for every member of the US population.

 “If we have insufficient cash on hand,” says Lew, “it would be impossible for the United States of America to meet all of its obligations for the first time in our history.”

 Analysts at ANZ Bank said in a note today that they expect headlines around the US debt debate “to drive” the gold price and other precious metals.

  “Gold could receive something of a bid over the short-term,” says INTL FCStone’s Edward Meir, “as worries rise over the debt ceiling talks.

 “But we doubt whether this variable alone will be enough to keep the complex elevated for long.”

 Turning to US monetary policy, meantime, last week’s vote by the Federal Reserve to continue buying $85 billion of Treasury bonds through quantitative easing “will not only stem the rise in real yields,” says Deutsche Bank in a note, “but also remove important interest rate support for the US Dollar.

 “On this basis, we expect this will introduce a strong floor…and may even provide some upside risks.”

Adrian Ash

BullionVault

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(c) BullionVault 2013

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

By www.CentralBankNews.info     The Czech Republic’s central bank left its benchmark two-week repo rate steady at 0.05 percent, as expected, and said it was “ready to use the exchange rate if further monetary policy easing becomes necessary.”
    “The probability of launching foreign exchange interventions has not changed and remains high,” said the Czech National Bank (CNB), adding that interest rates are first forecast to rise in 2015 and “given the zero lower bound on monetary policy rates, this points to a need for easing monetary policy using other instruments.”
    “The risks to the inflation forecast are slightly on the downside, tilted toward the need for slightly easier monetary conditions,” the strongest sign to date that the CNB is ready to intervene in foreign exchange markets to push down the koruna’s exchange rate.
    The Czech central bank first raised the possibility of selling the koruna currency in September 2012 and cut rates to essentially zero in November. It has repeatedly said it is ready to use foreign exchange intervention as a way to ease policy conditions further.
    The koruna has depreciated gradually since last September but has been largely steady in the last three months, trading at 25.7 to the euro today, the same as on June 1 but down some five percent from 24.36 to the euro in mid-September.

    The CNB said its current inflation report “does not predict an increase in inflation pressures and no tangible risks of such an increase in inflation pressures can be identified either.”
    Inflation in the Czech Republic in August eased to 1.3 percent, down from 1.4 percent in July, continuing the trend of declining inflation seen since mid-2012. The CNB forecasts 1.7 percent headline inflation this year, 1.9 percent next year and 2.1 percent in 2015.
    The central bank targets inflation of 2.0 percent, plus/minus one percentage point.
    “No cost-push inflation pressures are apparent and the outlook for administered prices is shifting downward,” the CNB said in its presentation.
    The Czech economy expanded by 0.6 percent in the second quarter from the first but in annual terms Gross Domestic Product contracted by 1.3 percent, the sixth quarter of economic contraction. In the first half, the economy shrank by an annual 1.9 percent.
    The CNB forecasts average growth of only 0.3 percent this year,, 1.4 percent in 2014 and 2.0 percent in 2015.
   
    www.CentralBankNews.info

German DAX futures are in bullish move since start of September, showing an impulsive price action. Impulse is a five wave pattern so we expect more upside as current decline from the highs appears to be a fourth wave, a temporary contra-trend movement. For now, we don’t see a completed pull-back yet, but market could find a support around 8510-8570 region where we see an open gap. Those gaps could react as a reversal, in our case as a support in wave 4 for a reversal up into wave 5. Targets for wave 5 are around 8860 where we see a 200% extension of a previous decline from 0845 to 8090 in August.

Basically those fourth waves are pull-backs that could represent an opportunity to join the larger trend. However, if you are looking for any set-ups after wave four retracement its important to know some rules of the Elliott Wave principle. One of the most important rule is that wave 4 must never retrace back to the area of a wave 1. In our case this comes in at 8279, so as long market is above this level bullish view remains valid.

German DAX 4h Elliott Wave Analysis

Written by www.ew-forecast.com | Try EW-Forecast.com’s Service Free For 7 Days at http://www.ew-forecast.com/service

By www.CentralBankNews.info    Taiwan’s central bank held its benchmark interest rates steady, as expected, saying the current policy stance was “conducive to price and financial stability as well as economic growth.”
   “In sum, the domestic economy has expanded moderately, and inflationary pressures are subdued. On the other hand, global economic recovery is proceeding at a gradual pace, and uncertainty in the global economic outlook remains,” said the Central Bank of the Republic of China (Taiwan), which has held its discount rate steady at 1.88 percent since June 2011.
    Although Taiwan’s dollar has been largely steady since mid-February, the central bank said massive foreign capital movements had impacted its exchange rate and if there is excess volatility and disorderly movements in the exchange rate, the bank “in line with its statutory mandate, will step in to maintain an orderly market.”
    The Taiwan dollar has risen slightly against the U.S. dollar since late August, trading at 29.5 to the U.S. dollar today, up from 30 in late August but slightly below 29.05 at the start of the year.
    Exports from Taiwan have been growing mildly “amid stabilizing demand from the US, Europe and China, while private demand and investment were both muted,” the bank said, noting the government forecasts growth of an annual 2.61 percent in the fourth quarter, slightly higher than 2.47 percent projected for the third quarter.
    In the second quarter, Taiwan’s Gross Domestic Product expanded by 0.58 percent from the first for annual growth of 2.49 percent, up from 1.62 percent in the first quarter.   
    For the full year, the central bank said the economy is forecast to expand by 2.31 percent before strengthening to 3.37 percent in 2014 as improved global growth boosts exports.
    The central bank said economic growth in advanced economies had recently gained some momentum while emerging economies, including China, had stabilized and international forecasters are projecting a pick up in global growth.
    “However, the issues of the US debt ceiling and the Federal Reserve’s withdrawal from quantitative easing, coupled with volatile cross-border flows, have increased financial instability in some emerging economies,” leading to heightened uncertainty about global financial stability and recovery.
    Taiwan’s inflation rate turned negative in August, with consumer prices falling by 0.79 percent from July’s scant rise of 0.06 percent and the central bank said inflation averaged 0.87 percent in the first eight months of the year.
    The government forecasts a slightly higher inflation rate of 1.64 percent for the fourth quarter and an average 1.07 percent for 2013 due to the supply of fruit and vegetables constrained by typhoons and torrential rains in recent months.
    Next year inflation is forecast to average 1.34 percent due to “gentle inflationary pressures across the globe due to moderate economic recovery and stable international raw material prices.”
    New housing loans extended by Taiwan’s five leading banks since the beginning of the year have been mostly lower compared with the same period last year, but the central bank cautioned that it was keeping an eye on banks’ management of mortgage related risks and since mortgage payments were now exceeding 30 percent of household income, “borrowers are advised to be mindful of risks stemming from future interest rate changes.”

    www.CentralBankNews.info
   

By HY Markets Forex Blog

Retail sales in Italy declined for the second month in July, with a fall of 0.3% month-on-month in July, compared to previously recorded 0.2% fall in June and exceeding analysts’ forecast of 0.1%, according to reports from the National Institute of Statistics (Istat).

Retail sales edged 0.9% lower on an annual basis, after a 3% drop in June while analysts estimated a 2.8% drop.

Retail Sales – Consumer Prices

In Italy, inflation rose to 0.4% in August, Istat reported on September 12. While on an annual basis, inflation advanced 1.2% in August.”The stability of Italian inflation was mainly the result of opposite movements,” Istat reported.The reports showed that the annual growth of food and non-alcoholic beverages prices was growing at a slower pace.

The Index of wages measures the growth of wages and salaries, which are determined by the contractual provisions, set by agreements.

At the end of July 2013, the coverage rate was at 47.3% when it came down to employees, while the total amount of wages was summed up to 45.8%.

In July, the hourly index rose by 0.1% while the per employee index remained unchanged, compared to July last year, the indices both advanced by 1.5%. Between January- July 2013, the hourly wage index rose by 1.4%, while the per employee index increased by 1.5%.

Italy’s GDP

The economic output for Italy was seen falling in the second quarter of this year, the preliminary figures confirmed on August 6 by Istat.

The flash second-quarter for Italy’s gross domestic product (GDP) dropped 0.2% quarter-on-quarter after a decline of 0.6% in the past three month period. Analysts predicted a fall of 0.4%.

Italy’s GDP declined 2.0% in the second quarter on an annual basis.

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The post Retail Sales In Italy Drops, Exceeding Analysts’ Forecasts appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

By HY Markets Forex Blog

European Stocks were seen green on Thursday as investors worries over the futures if the US budget, while Congress is expected to pass a spending a bill before October 1 for the government to stay funded.

Futures of the European Euro 50 rose 0.27% higher at 2,919.50 at the time of writing, while the German DAX futures edged 0.32% lower to 8,683.30 at the same time. Futures for the French CAC 40 advanced 0.31% to 4,197.80 and the UK FTSE 100 futures gained 0.23% higher to 6,526.80.

European Stocks – Market Movers

Talks over the US budget and debt ceiling are still ongoing in the US, the Congress need to take action before the US government funding expires on October 1^st.

On Wednesday, the US Treasury Secretary Jack Lew said he predicted that the US debt ceiling would be almost reached on October 17 with an estimated $30 billion cash.

Meanwhile in Greece, the government banks are trying to impose tougher collateral and assurance standards on domestic borrowers, which is expected to open the prospects of new credit tightening, according to reports by eKathimerini. Greek’s deputy Prime Minister Evangelos Venizelos said that the country could avoid the need of a third bailout if the global bond markets is accessible next year.

European Stocks – Economic News

Italy’s retail sales were seen edging 0.1% lower in July on a monthly basis, after a previously recorded 0.2% fall in the previous month, while retail sales are estimated to drop 2.8% year-on-year.

Meanwhile in Rome, the country’s government is expected to hold an auction of Treasury bills maturing in 6 months, with a maximum target to raise €8.5 billion.

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