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NYSE Euronext (NYX) acquired American Stock Exchange (Amex) in 2008 to expand its equities, options and exchange-traded funds (ETFs) trading business. Recently NYSE announced plans to sell the majority of its stake in the Amex stock options market to seven companies -- including top banks, trading houses and brokerages. With this move, the company hopes to increase its trading volumes by giving major brokerages an incentive to bring their business to Amex. Major competitors are Nasdaq OMX (NDAQ), CME Group (CME), BATS Global and Direct Edge.
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FeedNYSE Looks at Selling Stakes in Amex Exchange to Drive Volumes
Continue reading NYSE Looks at Selling Stakes in Amex Exchange to Drive Volumes
China's Yuan Move: A Start
Now that China has agreed to a modest appreciation of the yuan, should investors expect more of the same in the quarters ahead? At this juncture, no. The yuan's record high of 6.7980 yuan to the dollar reached Tuesday represents just a minor adjustment in Beijing's monetary policy, and that's what investors should look forward to: an incremental and very slow effort by Beijing to let the yuan appreciate, with limits.
How much will China let the yuan appreciate in a year? Perhaps 5% a year. The aforementioned may not seem like much but it does represent a Beijing response to international political pressure, primarily from the United States and the European Union.
Geithner: China's Yuan Policy Hindering Global Recovery
A key public official in the world's largest economy has turned-up-the-heat a notch regarding China's fixed-rate yuan currency. U.S. Treasury Secretary Timothy Geithner, in prepared Capitol Hill testimony Thursday, said China's exchange-rate policy is preventing more-balanced global economic growth.
"The distortions caused by China's exchange rate spread far beyond China's borders and are an impediment to the global re-balancing we need," Geithner said. Allowing the yuan to float more-freely would enable China to pursue "a more effective, independent monetary policy, which is particularly important now, with China's economy facing a risk of inflation in goods and in asset prices."
Continue reading Geithner: China's Yuan Policy Hindering Global Recovery
Will the Upcoming Decade Be One of U.S. Exports?
Every U.S. economic expansion of duration has had a catalyst of significance. Sometimes its been a sector (like information technology in the 1990s), or a new dimension to the economy (rising home ownership after the end of World War II).What could serve as the catalyst in 'the decade of 'the teens?' Exports, if President Barack Obama has his way. Obama wants to double U.S. exports in five years.
Continue reading Will the Upcoming Decade Be One of U.S. Exports?
Analyst Says Weaker Euro May Prevent European Recession
Will the euro's decline in value prevent a dreaded euro-zone recession? That's the conclusion of one analyst."The euro depreciation is very good news for the region" because the rest of the world economy is expanding, Charles Wyplosz, head of the International Center for Monetary and Banking Studies in Geneva, told Bloomberg News Thursday. "This is going to bring a welcome boost that may save the euro-zone from outright recession."
Continue reading Analyst Says Weaker Euro May Prevent European Recession
IMF Calls Appreciation of China's Yuan 'Highly Desirable'
Add the International Monetary Fund to the list of nations, institutions, and officials calling for China to let its currency appreciate. The IMF, in its revised World Economic Outlook, said an appreciation of China's currency, "appears highly desirable on its own."
The group also said a shift in China's economy away from exports and toward domestic consumption, along with structural measures to decrease savings, would be preferred, as well.
Continue reading IMF Calls Appreciation of China's Yuan 'Highly Desirable'
Survey Forecasts China to Let Yuan Rise by July
China may allow its currency, the yuan, to appreciate versus the dollar by June 30 to check inflation, according to a new Bloomberg survey. In the survey, 12 respondents said China's central bank will allow the yuan to float freely this quarter, while five expect it to occur by September 30. The median estimate for the yuan's strengthening was a 3.1% appreciation to 6.62 yuan to the dollar by the end of 2010.
Continue reading Survey Forecasts China to Let Yuan Rise by July
Hank Paulson Says Currency Flexibility Would Benefit China
Former U.S. Treasury Secretary Henry Paulson, is on the wires again, this time underscoring that a flexible currency for China would be in China's interest. "I believe very strongly that it is in China's interest to have currency flexibility, to keep moving the renminbi," Paulson said at the Boao Forum for Asia, using another name for the Chinese currency, Bloomberg News reported. "It gives the government a very valuable and I think it is going to become an increasingly necessary policy tool to deal with inflation."
Continue reading Hank Paulson Says Currency Flexibility Would Benefit China
U.S. Mercantilism May Be Needed to End China's Mercantilism
New York Times (NYT) columnist Paul Krugman characterizes China's essentially fixed-rate currency policy as "predatory."
I've called it "monetary mercantilism." Either way, the policy will remain a net negative for both global and U.S. GDP growth until China is convinced to move, gradually, to a currency rate that's determined by economic fundamentals and the free market.
Continue reading U.S. Mercantilism May Be Needed to End China's Mercantilism
Memo to Brazil, emerging markets: Congrats on Olympics -- now buy stuff!
It was an historic day when Rio de Janeiro was chosen as host for the 2016 Summer Olympic games -- the first emerging market ever to host the games.
It many ways it marked a formal "coming out" party, if you will, for emerging markets. It was a statement -- a confirmation -- of the the developing world's improved status in the early globalization era. It said, "We've arrived."
Continue reading Memo to Brazil, emerging markets: Congrats on Olympics -- now buy stuff!
Will Japan intervene to weaken the yen versus the dollar?
The dollar fell to an eight-month low versus Japan's yen Monday, down about one-quarter yen to 89.37, and placed into the currency market spotlight the season's most compelling question to-date: will the Bank of Japan intervene to stem the yen's rise versus the buck?Those who say central bank officials will intervene to weaken the yen argue that export-dependent Japan will be hurt if the yen appreciates more against the dollar. The yen has already risen about 20% versus the greenback in the past 12 months, and further yen increases, assuming Japan's exporters raise prices to protect their dollar-denominated profits, will result in lost sales, as Japanese goods --- particularly autos --- become too expensive for American consumers.
Continue reading Will Japan intervene to weaken the yen versus the dollar?
Buy American -- but promote foreign brands?
I recently attended a Lakers' basketball playoff game and took notice of the fact that Toyota Motor Corp. (NYSE: TM) was a major sponsor advertising at Staples Staples Inc (NASDAQ: SPLS) Center. This, while our home grown car companies are all on the verge of collapse.
As we write stories on the depressed economy readers frequently comment about "buying American" as a theme that will help the greater good by keeping jobs and money in the United States.
This patriotic notion got me thinking about what would happen if we carried it further? Would we stop advertising and promotion of foreign products? Would we restrict discussion of foreign products in the media all together? Would we limit the production of foreign products here, even if they are providing jobs for Americans?
Continue reading Buy American -- but promote foreign brands?
Time to get on board UNP
From the sound of selected analysts' research, you'd think that the U.S. economy would never recover. To be sure, there's much work ahead, particularly on the toxic asset removal and credit market fronts, but if you think the U.S. stock market's steady rise in March is a sign that financial institutions are starting to position themselves ahead of the typical investor, you're correct. And with the aforementioned in mind, Union Pacific (NYSE: UNP) is worth an evaluation.Union Pacific is the leading rail freight carrier in the United States, transporting coal, chemicals, industrial products and freight over an enormous track network: 32,000 miles of route track in 23 states in the western U.S.
Global economy will contract in 2009 for first time since World War II, World Bank says
Investors received yet another indicator Monday that this is not your father's recession. The global economy will likely contract in 2009 for the first time since World War II -- including a decline in trade - - the World Bank announced in its most recent report.
China seen passing second major stimulus package to jump-start economy
China apparently will announce a new fiscal stimulus package in an attempt to jump-start growth in the world's third largest economy.Chinese Premier Wen Jiabao is expected to announce "a new stimulus package" in his annual address to the nation's legislature, Li Deshui, ex-statistics bureau head told reporters in Beijing Wednesday, Bloomberg News reported.
Continue reading China seen passing second major stimulus package to jump-start economy
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
