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Turkish Consumer Confidence Improves In June

Turkey’s consumer confidence improved in June, survey results from the Turkish Statistical Institute showed on Tuesday.

The consumer confidence index rose to 81.7 in June from 77.3 in May.

The survey was carried out in cooperation with the Turkish Statistical Institute and the Central Bank of the Republic of Turkey.

The assessment of the present financial situation of household fell to 61.0 in June from 61.5 in May.

The financial situation expectation of households increased to 82.9 in June from 76.6 in the previous month.

The general economic situation expectation index grew to 86.0 in June from 78.8 in the prior month.

Assessment on spending money on durable goods index over next 12 months rose to 96.9 from 92.2 in May.

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UK Budget Deficit Narrows In May

The UK budget deficit narrowed in May from the last year, data from the Office for National Statistics showed on Tuesday.

Public sector net borrowing decreased to GBP 24.33 billion in May from GBP 43.76 billion in the previous year. The deficit was also below the economists’ forecast of GBP 26.1 billion.

Nonetheless, this was the second highest May borrowing since records began in 1993.

In the financial year-to-May, PSNB was estimated at GBP 53.4 billion, the second-highest financial year-to-May borrowing since monthly records began in 1993 and was GBP 37.7 billion less than in the same period last year.

Excluding banks, public sector net debt came in at GBP 2,195.8 billion at the end of May, or around 99.2 percent of GDP, the highest ratio since the 99.5 percent recorded in March 1962.

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Australia Business Conditions At Record High: NAB

Australia’s business conditions rose to a record high in May, while business sentiment weakened moderately from the previous month, survey results from National Australia Bank showed on Tuesday.

The business conditions index climbed to 37 in May from 32 in the prior month. Meanwhile, the business confidence indicator came in at 20 in May, down from a record high of 23 in the previous month.

The survey showed that the employment, profitability and trading sub-components all reset last month’s highs – with trading conditions at exceptional levels. Forward orders also remained at a record level.

The survey measure of reported capex rose further suggesting that the strong rise over 2021 is more than just a rebound from disruptions to activity and uncertainty during 2020. Overall, this was another very strong read for the business sector – and forward indicators point to ongoing strength in the near-term, NAB Group Chief Economist, Alan Oster, said. This is a pleasing result coming after last week’s national accounts which showed that the economy has now surpassed its pre-COVID level. The economy now appears to be entering a new period of growth after a very rapid rebound, Oster added.

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Japanese bank Nomura says it’s facing a loss of $2 billion as a hedge fund blow up

  • Japanese investment bank Nomura announced on Monday it’s facing a $2 billion loss on a US client.
  • Nomura said in a press release it didn’t believe the loss would impact the company’s solvency.
  • The announcement follows a wild week for markets dominated by a reported liquidation of positions held by Archegos Capital Management.

Japanese bank Nomura announced on Monday that it is facing a $2 billion loss.

The financial hit, it said in a statement, came out of “a significant loss arising from transactions with a US client.” The firm declined to name the client.

Nomura said it would no longer be issuing planned US dollar senior notes, noting that “an event that occurred after pricing that could impact the company’s consolidated financial results,” according to Reuters.

Following the news, Nomura’s shares were trading down 15% Monday morning.

The loss follows a wild week for markets dominated by a reported liquidation of positions held by Archegos Capital Management, an investment firm led by Tiger Asia founder Bill Hwang. The liquidation appears to have been led by Goldman Sachs and Morgan Stanley.

The two investment banks sold billions of dollars worth media and Chinese stocks, with ViacomCBS and Discovery dropping as much as 35% on the heavy selling. Chinese companies Tencent, Baidu, and Vipshop also saw a major drop. Market watchers told The Wall Street Journal the “size and speed” of the sell-off was “unprecedented.”

Despite the sell-off, the market saw a last-minute rally on Friday, with the Dow ending up 450 points and the S&P 500 closing at a record high.

Nomura said the $2 billion loss shouldn’t impact operations.

“As of the end of December 2020, Nomura maintained a consolidated Common Equity Tier 1 ratio of over 17 percent, which is substantially higher than the minimum regulatory requirement,” the statement continued. “Accordingly, there will be no issues related to the operations or financial soundness of Nomura Holdings or its US subsidiary.”

Nomura operates in 30 countries worldwide, as has total assets of $432.2 billion.

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European Economics Preview: UK Mortgage Approvals Data Due

Mortgage approvals data from the UK is due on Monday, headlining a light day for the European economic news.

At 1.00 am ET, consumer and industrial confidence survey results are due from Finland.

At 4.00 am ET, IHS Markit releases Austria’s manufacturing PMI survey results.

Half an hour later, the Bank of England publishes mortgage approvals data for February. The number of mortgages approved in February is seen at 95,000 versus 99,000 in January. At 6.00 am ET, February retail sales data is due from Ireland. Sales had declined 21.8 percent on month in January.

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Tips for Avoiding an Out of Money Experience

Do you run out of money before you run out of month? Many do, but it doesn’t have to be that way! Wealth is the result of widening the gap between what you earn and what you spend. Most of us make the mistake of ramping up our spending as our disposable incomes rise. This is self-defeating. If you do not develop a respect for money, it will always elude you.

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