Wednesday, 21 October 2015

Financial Orbit wrap 20/10/15

Five sentences or graphics which sum up the Financial Orbit output over the last 24 hours across the website, twitter account and anything else thought about...

1. US Treasury worried about Europe – semi-annual US Treasury report worried about Europe and calls for more stimulus: ‘it would be advisable for euro area economies to deploy a more balanced set of tools, including fiscal and structural policies, to provide support to domestic demand, particularly investment, which remains too weak’.  The mantra of more stimulus but at least they mentioned structural reforms too! 

2. Emerging markets – whilst talk of capital outflows from China topped $500bn in the first eight months of this year, according to new calculations by the US Treasury Emerging market equity funds tracked by EPFR Global have just recorded their first positive weekly inflows since June.  Sentiment slowly starting to improve investors should note which equates into opportunities. 

However in terms of any emerging market investment returns the performance of EM currencies vs the US$ so important / influential 
In its latest semi-annual report to Congress on the global economy, the US Treasury dropped its previous assessment that the renminbi was “significantly undervalued”. Instead, the Treasury said the Chinese currency was “below its appropriate medium-term valuation”.

This shows, in my view, that the US authorities are well aware of the above issues.

3. Listened to the International Hotel Group conference call.  Not surprised to see the shares perform well on Tuesday as I noted:

On IHG CC re relaxed re them Stays x2 IHG ones,‘micro locations’ different, ‘not a direct substitute amenities at a hotel different’

4. Bellweather United Technologies shares up 4% on Tuesday too.  Solid numbers, new big buy back but an acknowledgement that the global backdrop is suitably mixed:

5. Got to be sensible for Yum! Brands  to split into two: my buy call of last week working out well (link here). 

No comments:

Post a Comment