How good are analyst calls?
Overall, broker analyst calls are worth following – but average analyst outperformance hides some less flattering numbers.
$A slides below US87¢ mark, yen surges
The Australian dollar is trading at US86.81¢ early on Saturday morning, extending the slide triggered on Friday by comments from Reserve Bank board member Heather Ridout.
Wall St tumbles on emerging-market concerns
Updated | US stocks fell, on the heels of a selloff in emerging market assets, hurt by growth concerns in China and as expectations grew that the Fed will further trim its market-friendly stimulus measures.
JPMorgan increases Dimon's pay to $US20m
Jamie Dimon, JPMorgan’s chief executive, has been awarded total pay of $US20 million for 2013, a huge increase over the amount he received for 2012, according to a regulatory filing released on Friday.
Argentina surprises markets by relaxing FX controls
Argentina said on Friday it would relax currency controls it had long defended as essential, a policy reversal forced by high inflation and a sharp fall in the country's currency.
European shares drop on heightened Latam worries
European stocks suffered their biggest one-day slide in seven months on Friday as concern about economies and currencies in Latin America sparked a bout of profit taking.
Copper hits month low on signs of slowing China growth
Copper fell to its lowest in a month and struck its biggest weekly fall since mid-November as slowing growth in China's factories fuelled worries about demand in the world's top metals consumer.
Gold spike just a blip on the way down: UBS
Analysts predict a combination of reduced central bank stimulus, increasing investor appetite for risk assets and a return to hedging in the gold industry will see the precious metal continue to lose value in 2014.
China worries spark share sell-off ahead of earnings
The Australian share market has fallen for the third week in a row, following a surprise jump in local inflation and an indicator showing China’s manufacturing sector contracted for the first time in six month.
Corporate cash holdings hit record highs
Philip Baker | At the end of last year global companies had almost $US7 trillion of cash and equivalents on their balance sheets – more than double the figure of a decade ago. The story is similar in Australia.
BoE’s Carney backtracks on forward guidance
Central bank forward guidance is supposed to make life easier for investors. Bank of England governor Mark Carney adopted the policy five months ago, now he’s done a backflip and is abandoning the idea.
China bumps India from top gold consumer spot
China’s demand for gold jumped 32 per cent last year as the Chinese purchased gold bars, jewellery and Panda coins, bumping India from the traditional top spot, a new survey shows.
Currencies
| AUD | USD | EUR | JPY | GBP | |
| AUD |  |
0.8681 | 0.6346 | 88.79 | 0.5264 |
| USD | 1.1513 |  |
0.731 | 102.24 | 0.6064 |
| EUR | 1.5744 | 1.3674 |  |
139.87 | 0.8293 |
| JPY | 0.0113 | 0.0098 | 0.0071 |  |
0.0059 |
| GBP | 1.8979 | 1.6485 | 1.205 | 168.61 |  |
Inflation nixes rate cut talk
Inflation data for the December quarter was higher than expected, but while a rate cut is now unlikely, the weak economy means a rate increase in 2014 is far from certain.
World Indices
| S&P;/ASX 200 | 5,240.9 | - 22.1 | - 0.42% |
| ALL ORDINARIES | 5,254.3 | - 21.2 | - 0.40% |
| S&P;/ASX 100 | 4,353.4 | - 17.7 | - 0.40% |
| SMALL ORDS | 2,158.6 | - 8.6 | - 0.40% |
| Dow Jones | 15,879.11 | - 318.24 | - 1.96% |
| S&P 500 INDEX | 1,790.29 | - 38.17 | - 2.09% |
| NASDAQ COMPOSITE | 4,128.17 | - 90.70 | - 2.15% |
| Wilshire 5000 | 19,168.63 | - 421.69 | - 2.15% |
| FTSE 100 | 6,663.74 | - 109.54 | - 1.62% |
| CAC 40 INDEX | 4,161.47 | - 119.49 | - 2.79% |
| SMI PR | 8,201.50 | - 203.48 | - 2.42% |
| XETRA DAX PF | 9,392.02 | - 239.02 | - 2.48% |
| HANG SENG INDEX | 22,450.06 | - 283.84 | - 1.25% |
| - | % |
| NIKKEI 225 INDEX | 15,391.56 | - 304.33 | - 1.94% |
| SSE COMPOSITE/d | 2,054.39 | + 12.21 | + 0.60% |
Why big banks don’t like peer-to-peer
Jonathan Shapiro | The world’s most powerful banks are paying attention to peer-to-peer and other new forms of lending. But they seem more concerned about moonlighting than the financial system.
Once-bitten Telstra dips toe back in Asia
Telstra chief David Thodey is good at talking the talk when it comes to what he wants to do in Asia, but as anyone who has done business in the region knows, it takes time to walk the walk.
Tax and spend is still alive and well
Do not believe the government’s rhetoric about cutting tax and stopping waste, at least not yet. The budget update, released a week before Christmas, includes worrying indications of rising taxation and more wasteful spending.
BHP, Rio chiefs’ first-year report cards in
The vibe at BHP Billiton’s Melbourne head office has changed dramatically in the past year. The hot soup which was famously banned from employees’ desks under former boss Marius Kloppers is now sold in the staff cafeteria and apparently can be consumed anywhere in the company’s new Collins Street digs.
DC tops Wall Street for investors in the know
John Kehoe | Eye-opening research concludes that sell-side analysts at brokerage firms in the US issue more accurate earnings forecasts when they have ties to political insiders.
Stars start to align for Macquarie’s Moore
Expect a rather ebullient Nicholas Moore, Macquarie Group’s chief executive, when he gives an operational briefing on February 11.
El-Erian exits Pimco after disappointing year
Philip Baker | Mohamed El-Erian’s surprise departure from Pimco comes as the bond giant’s flagship Total Return Fund had its worst year in two decades.
Lynas Corp banking on its rare earths
The recent trajectory of Lynas Corporation will be familiar to any veteran in the mining industry.
Resources’ year of ‘hard choices’
Anne Hyland | Royal Dutch Shell’s new CEO Ben van Beurden and Australia’s Minister for Industry Ian Macfarlane, share something in common. The year ahead is shaping up as one of “hard choices”.
Equity returns not top priority
Finance bosses favour spending excess funds on acquisitions and capital purchases rather than returning money to shareholders in 2014.
Stars start to align for Macquarie’s Moore
Expect a rather ebullient Nicholas Moore, Macquarie Group’s chief executive, when he gives an operational briefing on February 11.
Taking stock
Goodman dances the samba after acquisition approval
News that Goodman Group has gained regulatory approval for its acquisition of $1.5 billion worth of Brazilian warehouses in a move that will help Goodman establish a core Brazilian fund with institutional backing.
A sunny summer for Nine’s share float
Nine Entertainment’s shift into the realms of listed entities last month was naturally greeted with some scepticism, but after dominating ratings, thanks to Australia’s Ashes whitewash, there is renewed interest in the broadcaster.
Equity Markets
January call options on VIX hit record 8.4m contracts
Demand for protection against a US stock-market selloff soared on Friday as traders scooped up call options in CBOE Volatility index VIX, Wall Street's favourite index of anxiety.
European shares drop on heightened Latam worries
European stocks suffered their biggest one-day slide in seven months on Friday as concern about economies and currencies in Latin America sparked a bout of profit taking.
Debt Markets
Inflationary pressure to slow housing market
Oh dear. The Reserve Bank of Australia’s worst nightmares, which this column has canvassed for some time, could be coming to fruition more quickly than most expected.
When they’re hybrids, assume nothing
Like any investment hybrids carry some risk. But quite often they are issued by company’s that are so well regarded and well known the risks are sometimes overlooked or not properly understood.
Currency Markets
$A slides below US87¢ mark, yen surges
The Australian dollar is trading at US86.81¢ early on Saturday morning, extending the slide triggered on Friday by comments from Reserve Bank board member Heather Ridout.
Argentina surprises markets by relaxing FX controls
Argentina said on Friday it would relax currency controls it had long defended as essential, a policy reversal forced by high inflation and a sharp fall in the country's currency.
