Wednesday 31 December 2014

Oil Falls Below $57, Heads For Biggest Annual Drop Since 2008

A flame shoots out of a chimney at a petro-industrial factory in Kawasaki near Tokyo, Dec. 18, 2014. Reuters/Thomas Peter

(Reuters) - Oil dropped below $57 a barrel on Wednesday and was heading for its biggest annual decline since 2008, pressured by weakening demand and a supply glut prompted by the U.S. shale boom and OPEC's refusal to cut output.
Global benchmark Brent crude has fallen 49 percent in 2014 as demand growth slowed, the United States expanded output and OPEC, dropping its strategy of trimming supply to keep oil around $100 a barrel, chose instead to defend market share.
On Wednesday, prices came under pressure from a survey showing China's factory sector shrank for the first time in seven months in December - a bearish indication on the strength of oil demand in the world's second-largest consumer.
"Clearly, demand concerns are one of the issues for the oil market," said Michael McCarthy, chief market strategist at CMC Markets.
Brent was down $1.00 at $56.90 by 0917 GMT, after

Elumelu’s Heirs Holding To Promote The New Era Of Social Networks

Felicia Omari Ochelle Economic Development & Policies, Investing, Investors, M & A, Markets

VENTURES AFRICA – Heirs Holdings, an investment firm owned by Nigerian businessman Tony Elumelu, has revealed its recent investment in Silicon Valley’s upcoming Wonderloop. The investment is aimed at promoting the development and growth of its custom video-profile platform.
In a statement, the firm stated that the funding will be expended as a loan straight to Wonderloop. Thereby supporting the creation of a prototype to speed up the recognition and functionality of the social network platform.
About Wonderloop
The first of its kind, this application offers a short 10-15 second video-profile as opposed to images and bios. This makes it possible to view the real you, a new means of connecting with others as opposed to Face Time and Skype.
Founded by Norwegian entrepreneur Hanna Aase, the California based platform will be fully launched in 2015, after which all users will only be granted entrance to the platform via invites.
Angel investments
According to a report by Naira metrics, the total investment remains undisclosed as there are no further details about the actual amount committed. This is however another of such investments by Heirs Holding in high potential tech start-ups, following a similar involvement with Planet Labs.
“I am excited about Wonderloop’s vision of giving everyone in the

Angola Finally Launches Stock Exchange

Editor Advisor Network, Stocks & Bonds

VENTURES AFRICA – Africa’s second biggest oil producer, Angola, unveiled the first phase of its stock exchange with the launch of a Wholesale Treasury Market and Treasury Securities Registration Market in the capital city, Luanda.
Angola currently does not have a stock exchange. Though the government first announced in 2006 that it intended setting up its first ever stock exchange. The exchanged would be named the Angolan Debt and Securities Exchange (BODIVA).
The country’s Finance Minister, Armando Manuel, said earlier that he hoped BODIVA would evolve rapidly to list shares and bonds of public and private companies. He also noted the importance of government bonds issued to finance the long-term Public Investment Programme and

Algeria Pressures OPEC To Lower Oil Production

Niyi Aderibigbe Business, Energy

VENTURES AFRICA – Algeria, one of Africa’s major oil producers, has urged OPEC to cut production in order to push oil prices up.
OPEC had in November insisted on maintaining its production levels despite falling global oil prices. Algerian energy minister, Youcef Yousfi, however said OPEC should defend the interests of its members by cutting output.
“We believe that OPEC should defend the interests of its members by cutting output so prices will go up,” Yousfi was quoted by the APS news agency as saying.
The decision of OPEC not to cut output is largely based on the opinion of some big players in the group, who prefer to leave price regulation to the market.
Algeria, according to Yousfi, did not share the views of big producers inside the cartel. “We do not share the views of big producers inside OPEC who say the

Skye Bank Assigns New Managing Director For Mainstreet Bank

Felicia Omari Ochelle Careers & Education, Leadership

VENTURES AFRICA – Skye Bank Plc has announced the appointment of Mrs Amaka Onwughalu as the new acting Managing Director for Mainstreet Bank after it completed the acquisition of the nationalised bank.
A notice to the Nigerian Stock Exchange (NSE) in Lagos on Monday, contained the details which also indicated that Onwughalu would double as the Deputy Managing Director (DMD) to monitor the affairs of the bank.
Mrs Onwughalu, who has over 27 years of banking experience, was appointed to the Board of Skye Bank on November 30, 2008. The bank further stated that she climbed to the position of acting Managing Director of Reliance Bank in April 2005. She has also served with the International Funding Group, Treasury Group and other subsidiaries as DMD.
Mr. Dotun Adeniyi was also appointed into the interim management board as an Executive Director. Currently Skye Bank’s Risk officer, he is vastly experienced in

The Quest For A Globalized Africa

Elton Advisor Network, Economic Development & Policies, Editor's Pick, Investing

VENTURES AFRICA – What will it take to get Africa to the pinnacle of its own potential, and to the grand stand of global business? With a population of over one billion, a rising middle-class and more mineral piggy-bank of natural resources like no other continent – can we do?
The main challenges for Africa at this point, as has been for as many years, are poverty, lack of basic education and severe shortages of critical infrastructure. So, maybe a starting point for us will be to have a pointed approach at financial education, skills development and infrastructure development.
Mogam Pillay, CFO for Old Mutual Africa highlights that with Africa’s one billion population set to double in 15 – 20 years, “we already know that up to 80% of this total will be unbanked.” The deficit exists because of the lack of basic financial literacy and understanding, creating an oasis for financial services corporations to start and continue upskilling process of this market.
This 80 percent sits mostly in the informal sector. Critically, the informal sector carries the African continents GDP by at least 55 percent. A critical aspect of measurement now is to evaluate the investment whether through FDI or sovereign and private investment, the nature of u

Abraaj Exits Race To Acquire Egyptian Food Maker

December 31, 2014 Ehidiamhen Okpamen Investing, M & A

VENTURES AFRICA – The Abraaj Group, a leading investor operating in global growth markets, has today announced that it has decided that it will not continue to participate in the competitive bidding process for the acquisition of up to 100 percent of the share capital of Egyptian BiscoMisr, a leading baked goods and confectionery manufacturer.
Abraaj’s latest offer, through one of its Funds, for the acquisition of the Company was made on December 24, 2014, when it further increased its offered purchase price per share to EGP 88.09, amounting to a total purchase price for the Company of EGP 1 billion. Abraaj’s latest offer also included a provision to allocate shares with a value of around EGP 100 million towards implementing a long term employee incentivization and retention program to benefit all BiscoMisr employees. Further to Abraaj’s last offer, Kellogg has increased its own offer price to EGP 89.86 per share.
Abraaj believes that the employees and various stakeholders of Bisco Misr have built a strong brand and a company with strong future potential. Abraaj wishes BiscoMisr and Kellogg success, and trusts that Kellogg will, following the successful completion of its tender offer, continue to

Saudi stock index falls; King Abdullah admitted to hospital

Reuters with CNBC.com

Roger L Wollenberg | Pool | Getty Images

Saudi Arabian King Abdullah (L) with President Obama

Saudi Arabia's stock market fell sharply on Wednesday after Saudi state television reported that King Abdullah had been admitted to hospital for tests.
The main equities index, the TASI, was trading down 2.8 percent at 11.30 a.m. GMT, paring some losses after falling around 5 percent in the minutes after the television report.

The elderly king was admitted to a hospital in the capital Riyadh on Wednesday, state media reported, citing a royal court statement.
King Abdullah was born in the court of his father, King Abdulaziz Ibn Saud, in the early 1920s.
The softly-spoken monarch, who took power in 2005 after the death of King Fahd, has undergone surgery in the past few years related to a herniated disc.
"The Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz, may God keep him, entered today Wednesday ... the King Abdulaziz Medical City of the National Guard in Riyadh to undergo some medical tests," the statement said, according to state news agency SPA.
State media last week reported that King Abdullah had left Riyadh for his

Ridley Scott's Exodus movie banned in UAE and Qatar

Yousef Gamal El-Din | @youseftv

Still from the film Exodus: Gods & Kings.

Hollywood movie "Exodus: Gods and Kings" was banned this week in the United Arab Emirates (UAE) and Qatar, as the religious epic proves controversial in the Middle East.

Regulators in both the UAE and Qatar could not be reached for comment on Wednesday morning. However, Juma Obeid Al Leem of the UAE's National Media Council, told local paper Gulf News "there are many mistakes, not only about Islam, but other religions too".
Doha News quoted cinema representatives on Tuesday confirming the movie's ban in Qatar, although no reason was given.

Source: 21st Centery Fox | YouTube

Still from the film Exodus: Gods & Kings.

The movie has offended some Muslim authorities for its depiction of Moses, an important prophet in Islam as well as Christianity and Judaism, and the biblical exodus from Egypt.

Read MoreIs 'The Interview' a success for Sony?

Egypt's ministry of culture banned the film before its slated release, and it has also been banned in Morocco.
The movie has also failed to air in Kuwait or Bahrain, even though it was expected to release there on December 25. Calls by CNBC to cinema outlets confirmed the movie was

What the Moscow protests mean for Putin

Matt Clinch | @mattclinch81

Russian President Vladimir Putin at the Kremlin in Moscow, December 17, 2014.

Chris Weafer, senior partner at Macro-Advisory, says Russian President Vladimir Putin&#039;s approval ratings could take a hit following the arrest of opposition leader Alexei Navalny, and as the tough economic reality begins to bite.

The price of the U.S dollar rose against the Russian ruble on Wednesday morning after a night of protests near the Kremlin that left more than 100 people detained by local police.
Hundreds of anti-Kremlin protesters took to the streets on Tuesday after Russia's opposition leader, Alexei Navalny, was found guilty of embezzling money and was given a suspended sentence by a Russia court. His brother, Oleg Navalny, was jailed for 3 ½ years. Police moved in and disbursed the protesters within two hours, according to media reports.
The Russian currency depreciated sharply against the dollar in the morning session and was trading at 58.64 by 10.30 GMT after ending Tuesday's session at 55.29. The currency has

BP probes in-house foreign exchange traders

Martin Arnold

BP is investigating whether in-house financial traders at the oil and gas group were involved in a foreign exchange manipulation scandal that has led regulators to levy $4.3 billion in fines on six banks.

The UK group launched an internal review of its currency trading operations in London last year when regulators first started probing banks over their foreign exchange activities. A person familiar with the situation said the inquiry was "ongoing".
Additional questions about the potential involvement of BP's traders in alleged attempts to rig the world's $5.3 trillionn-a-day forex markets have been prompted by a Bloomberg report that bank employees tipped off the oil and gas group ahead of some big currency trades.

Getty Images

Bloomberg cited three undated messages sent to BP's traders by the powerful network of senior foreign-exchange traders calling themselves "The Cartel" at four banks — JPMorgan Chase, Barclays, UBS and Citigroup. It said BP was given "valuable information" about

Here it is...the world's top-performing index in 2014

Matt Clinch | @mattclinch81

Despite battling a debt default and currency crisis, Argentina's stock market has won the unlikely accolade of the best performing global index of 2014.
With just hours left before markets around the world close for another year, the Buenos Aires Merval Index has logged an annual gain of 58.9 percent – this is the greatest percentage increase compared to other global benchmarks tracked by Reuters.
The index's gains have edged down from mid-September, however, when it had surged 133 percent year-to-date. The wider slump in emerging markets hitting the country's shares.
The index is classed as a frontier market by MSCI and is relatively small, with a market capitalization of just $93.16 billion, compared to the S&P 500's $19.32 trillion.

The bourse contains 14 different stocks, with electric power firm Transener the best performer with a gain of 206 percent year-to-date.

Financial institution BBVA Banco Francés surged 162 percent, meanwhile, and energy company Edenor was also up an impressive 148 percent.

Brazilian-based energy corporation Petrobras was the major laggard with a fall of 30 percent in 2014. This is on the back of a dramatic plunge in oil prices, which have

Arjun Kharpal | @ArjunKharpal

It was difficult to go through a week this year without hearing of another major cybersecurity breach. And it looks as though 2015 will be no different but this time it'll be mobile phones which will be the big battleground for hackers, security experts have warned.
Most of the ever-lengthening list of headline-hitting hacks—including Sony Pictures and retailer Target—have happened via a compromise to the companies' computer networks. Up until now smartphones have been escaped relatively unscathed.
But as businesses allow their employees to use their own mobile devices for work, people use their phones to log into local wi-fi and the mobile e-commerce space explodes, analysts warn hackers are likely to follow the money.
Read MoreCEOs beware of 'dark hotel' hackers
"They (smartphones) are now so integrated into people's lives and people are using them for all the things they would have used the laptop for five years ago," David Emm, senior security research at Kaspersky Lab, told CNBC by phone.

Smartphones: New &#039;playground&#039; for hackers Greg Day, CTO of FireEye, says hackers will increasingly focus their attention on smartphones as consumers carry out more activities on their devices.

"We are taking them in and out of businesses and on travel and we

Somalia Says Al-Shabaab Intelligence Head Killed in U.S. Strike

By Mohamed Sheikh Nor

Photographer: Mohamed Abdiwahab/AFP/Getty Images

A U.S. air-strike in southern Somalia killed the intelligence chief of the al-Qaeda-linked al-Shabaab Islamist militant Group three months after a similar attack eliminated the group’s leader, Somalia’s National Intelligence and Security Agency said.
Abdishakur Tahliil, was killed near Somalia’s southern town of Saakow, the agency said in a statement yesterday. Two other senior officials were also killed in the attack, NISA said, without identifying them. Earlier, Pentagon spokesman Mark Wright said in an e-mailed statement the attack took place yesterday about 325 kilometers (202 miles) west of the capital, Mogadishu. He didn’t identify the target.
“A joint operation between the Somalia National Intelligence and Security Agency and the U.S. successfully carried out a surgical attack on Al-Shabaab’s intelligence chief in which he and two other senior officials of the terrorist group perished,” Nisa said.
The strike comes three months after manned U.S. aircraft and drones killed Ahmed Abdi Godane, the leader of the al-Qaeda-linked militant group that has waged an insurgency against Somalia’s government since 2006. The U.S. declared the militia a terrorist organization in 2008.
The attacks by the U.S. follow a series of military setbacks that al-Shabaab has suffered since African Union-backed Somali government troops pushed the militants to

Harvard Law School’s Response to Sex Assaults Violated Title IX

By Chris Staiti

Photographer: Darren McCollester/Getty Images

Harvard Law School was found in violation of Title IX, the law that prohibits gender discrimination in education, for its failure to respond adequately to sexual assault reports, the Education Department said.
The law school agreed to amend its policies for addressing sexual assault reports after it didn’t respond appropriately to two student complaints, including taking too long to review one of the cases, the department’s Office for Civil Rights said today in a statement. The changes will help the law school comply with Title IX’s requirements for a “prompt and equitable response” to reports of sexual assault and harassment, the department said.
Under a resolution agreement, the Cambridge, Massachusetts-based school, will revise its policies, share information with Harvard University and campus police and notify students of their right to pursue criminal charges as well as filing Title IX complaints with the law school.
“Harvard University and Harvard Law School are

Pimco’s Seksaria Fired After CME Fine Tied to Trading

By Mary Childs

Rahul Seksaria, a money manager at Pacific Investment Management Co. running inflation-protection strategies, was dismissed after CME Group Inc. fined him for improper trades.
Seksaria in April 2012 “orchestrated and prearranged trades in the June 2015 Eurodollar futures contract opposite one of his employer’s client suspense account, which resulted in the transfer of $2,675 from the suspense account to his personal trading account,” CME, operator of the world’s biggest futures market, said on its website. CME this month barred him from using its markets until after March 19 and ordered Seksaria to repay the $2,675 as well as a fine of $65,000.
“Mr. Seksaria had traded in his personal account on the other side of Pimco client accounts, and profited from that activity – a clear violation of the firm’s policies,” Daniel Tarman, a spokesman for Newport Beach, California-based Pimco, said today in an e-mailed statement. “While the amount involved in this matter was small, Pimco’s code of ethics mandates that all employees must

Oil Gains on Speculation Libya Disruption May Ease Glut

By Grant Smith and Moming Zhou

Oil climbed for the first time in four days on concern that production disruptions in Libya may pare a global surplus that’s driven crude to a five-year low.
Libyan output has fallen below 300,000 barrels a day, the lowest since May, after militants shifted attacks to energy facilities including the country’s largest oil export terminal, according to Energy Aspects Ltd. estimates. The U.S. Commerce Department said lease condensate “processed through a crude oil distillation tower” is a petroleum product, exempt from U.S. export restrictions.
Oil has slumped 45 percent this year, set for the biggest annual decline since 2008, as the highest U.S. production in more than three decades contributed to a global surplus estimated by Qatar at 2 million barrels a day. Saudi Arabia, which is steering the Organization of Petroleum Exporting Countries to resist cutting output, has said it’s confident that prices will rebound as

China December Factory Gauge Falls in Sign Growth Support Needed

By Bloomberg News

A Chinese factory gauge sank to a seven-month low in December, holding near a preliminary reading and putting pressure on policy makers to provide more support for the world’s second-largest economy.
The final reading of the Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was 49.6 this month from 50 in November, compared with the Dec. 16 reading of 49.5. Numbers below 50 indicate contraction. The median estimate of eight analysts in a Bloomberg survey was for 49.5.
Mired in industrial overcapacity, factory-gate deflation and a housing slump, China is headed for its slowest full-year economic expansion since 1990. The central bank, which cut its benchmark interest rate in November, has expanded its toolkit to support growth, freeing up more funds for lenders in 2015 by broadening the definition of a deposit and adding liquidity by stealth at

By Jonathan Browning and Clement Tan

China’s two biggest trainmakers surged after saying they plan to combine in a $12.3 billion share swap, a move intended to boost exports of the country’s high-speed rail technology.
CSR Corp. (1766) will acquire smaller competitor China CNR Corp. by issuing 1.1 new shares to CNR investors for each share they own, the two companies said in a joint statement today. CNR climbed 43 percent in Hong Kong trading, the biggest jump on record, while CSR soared 31 percent at 10:18 a.m. Both companies are state-owned.
The companies, which had $37 billion of combined sales in the 12 months through September, are merging as competitors such as Germany’s Siemens AG and France’s Alstom SA (ALO) face constrained public spending in developed markets. China is competing aggressively for overseas projects, with Premier Li Keqiang touting the nation’s rail technology on his foreign trips.
Shares of CNR and CSR, which have been halted from

Morgan Stanley Says Hold Onto Your Greek Bonds as Election Looms

By Eshe Nelson

Greek government bonds with longer maturities are worth keeping through a period of volatility as snap elections approach next month, Morgan Stanley (MS) said.
A selloff in 10-year bonds pushed yields to the highest close in 15 months yesterday amid concern the vote will hand power to the opposition Syriza party, which is opposed to some of the demands of Greece’s international creditors. Valuations of the nation’s bonds now present an attractive risk-reward opportunity, London-based analysts Paolo Batori and Robert Tancsa wrote in a report dated yesterday.
“The macroeconomy is likely to be more resilient to a change in policy direction than the microeconomy,” the analysts wrote in the report. “This underpins our long-term constructive view on the bonds, but near-term risks remain substantial. Volatility is likely to remain high and

Higher Minimum Wages on New Year’s Day for Workers in 20 States

By Alison Vekshin

The minimum wage will rise in almost half of U.S. states Jan. 1 after local governments helped the lowest earners while efforts to approve a nationwide boost languish in Congress.
Twenty states from Hawaii to Connecticut will see increases in minimum hourly pay after voters approved ballot measures and legislatures enacted laws, according to the National Conference of State Legislatures. In nine of the states, the lowest pay will rise because of indexing to inflation.
“We’ll continue to see more action at the state level and at the local level,” said Ken Jacobs, chairman of the Center for Labor Research and Education at the University of California at Berkeley. “It is a very politically popular measure and so we would expect in 2016 that we should see more minimum-wage ballot initiatives.”
President Barack Obama has urged Congress to raise the

Hedge Funds Surrender to Oil Rout as Bullish Bets Drop

By Mark Shenk

Photographer: Brittany Sowacke/Bloomberg

Hedge funds finally pulled back from bets on higher oil prices as the market faces its worst year since 2008.
Speculators reduced their net-long position in West Texas Intermediate crude for the first time in four weeks, cutting their holdings by 5 percent in the week ended Dec. 23, Commodity Futures Trading Commission data showed yesterday. Long wagers dropped the most since August.
Prices have tumbled to the lowest level in more than five years as U.S. output climbed and the Organization of Petroleum Exporting Countries refused to make production cuts. The International Energy Agency and U.S. Energy Information Administration cut their estimates of 2015 global fuel consumption this month amid expectations for slower economic growth outside the U.S.
“The weak physical fundamentals have weighed on the market,” Tim Evans, an energy analyst at Citi Futures Perspective in New York, said by phone. “OPEC’s shift from a

Former Korean Air Executive Arrested Over In-Flight Nut Row

By Sam Kim

Heather Cho, the daughter of Korean Air Lines Co. (003490) Chairman Cho Yang Ho, was arrested on a charge of obstructing aviation safety after she ordered a crew member to deplane during a row over in-flight service.
“I’m sorry,” Cho said, looking down and surrounded by reporters in footage broadcast by YTN from outside prosecutors’ offices in Seoul. The Seoul Western District Court issued an arrest warrant for Cho late yesterday, Heo Seung, a judge at the court, said today by phone.
Cho’s arrest follows a public outcry in South Korea after she ordered the head of the service crew on Flight 86 from New York to Seoul to deplane Dec. 5 after an attendant served her macadamia nuts without asking.
The aircraft had already left the gate at John F. Kennedy International Airport for takeoff when the incident happened. It took no more than 2 minutes to return to the

Saudi Arabia’s Takween to Buy Savola Unit for $242 Million

By Matthew Martin

Saudi Arabia’s Takween Advanced Industries Co. (TAKWEEN) agreed to buy Savola Group (SAVOLA)’s packaging unit for 910 million riyals ($242 million) in a rare example of a deal between two listed companies in the country.
The acquisition will be financed through bank loans, Takween said in a statement to the Saudi Stock Exchange. The two companies signed the sale agreement yesterday and Takween expects the acquisition to boost its earnings from the second quarter of 2015, it said. Savola will make a capital gain of 265 million riyals and will use the proceeds to support its foods and retail business, it said in a separate statement.
The value of completed mergers and acquisitions in Saudi Arabia has risen 6.9 percent to $443 million in 2014, after a more than 70 percent drop in 2013, according to data compiled by Bloomberg. Most transactions in the Arab World’s biggest economy have

U.K. Terrorism Arrests Jump 40% Amid Militants’ Trips to Syria

By Jeremy Hodges

The number of arrests in U.K. terrorism probes soared by 40 percent this year as police grappled with growing numbers of British citizens traveling to war-torn Syria to work on behalf of Islamic militants.
Police throughout the U.K. arrested 312 people for a range of terrorist-related offenses as of Dec. 16, compared with 222 in 2013, according to data provided by the Metropolitan Police and the U.K. Home Office. In London, police said they detained about 35 percent more people than three years ago amid investigations of British citizens returning from Syria or Iraq.
Islamic State militants have murdered U.S. and U.K. hostages, while videos released online appear to show men with British accents among the fighters. The U.K. terror alert was raised to “severe,” the second-highest level, in August as countries around the world expressed concerns that militants may return to their home countries with plans to attack targets.
“The authorities are coming under pressure,” Raffaello Pantucci, Director of International Security Studies at the Royal United Services Institute for Defence Studies, said in

Commodities Head for Record Losing Run on Oil to Dollar

By Sharon Cho and Morgane Lapeyre

Photographer: Jamie Schwaberow/Bloomberg

Commodities headed for the biggest annual loss since the global financial crisis in 2008, retreating for a record fourth year, as a global glut spurred a rout in oil prices and a stronger dollar cut the allure of raw materials.
The Bloomberg Commodity Index (BCOM), which tracks 22 products from crude to copper, fell 0.3 percent to 105.7837 points at 8:43 a.m. in London, after dropping to the lowest level since March 2009 earlier today. It’s lost 16 percent this year, with crude, gasoline and heating oil the biggest decliners. A fourth year of losses would be the longest since at least 1991.
Energy prices retreated in 2014 as a jump in U.S. drilling sparked a surge in output and price war with OPEC, which chose to maintain supplies to try to retain market share. The dollar climbed to the highest level in more than five years as a U.S. recovery spurred speculation

Traders Enjoy Best Year Since 2008 as Swings Return: Currencies

By Lukanyo Mnyanda

Currency traders will be starting 2015 on their hottest winning streak in a decade.
An index of foreign-exchange returns has risen for the past six months, the longest stretch since 2005 and turning this year into the best since 2008. That marks a comeback for traders who, as recently as September, were facing a fourth year of losses as record-low volatility limited opportunities to make money.
The catalyst for change came with a divergence in monetary policy, helping the dollar burst higher while pressuring currencies such as the euro, Norwegian krone and Australian dollar. First, European Central Bank President Mario Draghi said the central bank was ready to

Singapore’s Economic Growth Slowed to 2.8% in 2014, Lee Says

By Sharon Chen and Michael Heath

Photographer: Toru Yamanaka/AFP via Getty Images

Singapore’s economic growth cooled in 2014 and the nation will experience slower expansion than it’s used to, Prime Minister Lee Hsien Loong said.
Gross domestic product rose 2.8 percent this year, Lee, 62, said in his New Year message today. That compares with a November forecast of about 3 percent, and an expansion of 3.9 percent in 2013.
“Our economy has performed moderately well in 2014,” Lee said. “However, our productivity performance has been disappointing” and the country must intensify efforts to help companies and workers upgrade, he said.
Export-dependent Singapore is experiencing the effects of a faltering global economy, with China on track to record its smallest growth in almost a quarter century and weaknesses in Europe and Japan. Government efforts to slow the inflow of cheap foreign labor has also pushed up business costs.
“Our growth will be slower than we are used to,” Lee said. “One

Soros-Backed Surgical Robots Break Sales Slump

By Gabrielle Coppola

It’s not easy selling robots that can drill holes in your spine.
After two quarterly earnings misses and a 46 percent drop this year through November, surgical robot maker Mazor Robotics Ltd. (MZOR) finally caught a break.
Mazor announced four sales of its $849,000 device in a single week in December, one to a U.S. hospital, and three more in China and Taiwan. That sparked a 14 percent surge in the stock this month to $12.01, the first positive return since June for the Caesarea, Israel-based company.
Mazor, which counts billionaire George Soros’ hedge fund among its top shareholders, is trying to convince doctors and hospitals that using its system will improve accuracy and reduce surgery time for spinal operations, an $8.5 billion global market, according to Needham & Co. Using surgical robots has become a marketing tool for hospitals, a selling point for Mazor, which had

European Stocks Trim December Decline in Shortened Trading Day

By Inyoung Hwang

European stocks advanced, trimming their first December decline since 2008 amid low equity volume.
The Stoxx Europe 600 Index rose 0.3 percent to 342.17 at 11:25 a.m. in London, with the volume of shares changing hands being 79 percent below the 30-day average. The gauge has slipped 1.5 percent this month amid a slump in energy producers and in Greek equities as Prime Minister Antonis Samaras failed to get enough backing for his presidential candidate, leading to early elections.
“The drop in oil added much more volatility to markets,” said Louis de Fels, a Paris-based fund manager at Raymond James Financial Inc., which oversees about $53 billion. “But we’re confident in European equities in 2015. We expect there’ll be fewer geopolitical problems next year. Also, lower oil will help consumption in Europe, the U.S. and China. This is quite good news for 2015 global growth.”
Stoxx 600 retailers and financial-services companies are

Praet Warning of Oil Effects Signals Higher Chance of ECB QE

By Jana Randow

European Central Bank Chief Economist Peter Praet warned in an interview with German newspaper Boersen-Zeitung that lower oil prices increasingly risk de-anchoring inflation expectations, indicating that quantitative easing is becoming more likely.
The euro-area could see “negative inflation during a substantial part of 2015” amid a slide in the cost of crude, and the Governing Council “cannot simply look through” that, Praet said in comments published on the ECB’s website today. “Inflation expectations are extremely fragile” and “the risk of second-round effects seems to be greater today than it was in the past,” he said.
ECB policy makers are preparing to consider a proposal for large-scale asset purchases, including sovereign bonds, when they meet on Jan. 22. While Executive Board member

Booming U.S. Validated as Investors See Busy Consumers

By Oliver Renick and Craig Giammona

Americans are spending again and investors know it.
After almost a year of favoring funds that focus on necessary goods, investors have been piling into funds that gain as U.S. consumers spend money on nonessential purchases like clothes and cars. Shares outstanding in an exchange-traded fund tracking the industry have climbed 28 percent in the past two months, compared with an 8.9 percent increase in shares of a similar fund tracking consumer-staples stocks.
Appeal for discretionary stocks began building in November amid data showing the U.S. economy was expanding faster than forecast. The fund flows show investors are confident that an expanding U.S. economy, stable job growth and lower gasoline prices will lead consumers to spend more, according to Omar Aguilar, chief investment officer of equities at Charles Schwab Investment Management.
“The changes into discretionary reflect the strength of the

Inflation No-Show Unlikely to Slow Fed Countdown to Rate Liftoff

By Michelle Jamrisko

Economists are slashing U.S. inflation forecasts for 2015 as oil prices tumble. What’s not changing are predictions that the Federal Reserve will raise its benchmark interest rate anyway, probably around mid-year.
“We’re still saying June with risks to September,” said Michael Gapen, the New York-based chief U.S. economist for Barclays Plc. The Fed “can push rates higher in the middle of the year, even though visually that may look awkward if headline inflation is around zero.”
A stronger dollar, slowing global growth and cheaper oil are holding down costs for goods such as televisions and autos. Fed policy makers will probably look past that and see an improving labor market that will force employers to offer higher wages. Those costs will soon push up the price of such things as rent and restaurant meals, no matter what happens overseas, giving the

Gold’s Year-End Rally Surprises Funds Lowering Bets: Commodities

By Marvin G. Perez

Gold’s year-end rebound is taking investors by surprise.
With Greece facing another political crisis and equities giving up some gains, bullion is headed for the biggest monthly advance since June. Hedge funds lowered their wagers on a rally for a second straight week, and holdings in exchange-traded products backed by the metal are near the lowest since 2009.
The money managers aren’t the only ones being caught off guard, with the rebound undercutting bearish forecasts from Goldman Sachs Group Inc. and Societe Generale SA. The metal has climbed 6 percent since reaching a four-year low in November. Slowing economies are prompting central banks in Europe and Asia to add to monetary stimulus, while gold’s volatility is picking up after spending most of 2014 in the doldrums.
“Geopolitical tensions could bring gold back up,” Donald Selkin, the chief market strategist at New York-based National Securities Corp., which

Oil Falls in Worst Year Since 2008 as Europe Stocks Gain

By Emma O’Brien and Abigail Moses

Crude oil fell, heading for its worst year since 2008 amid a global supply glut. Stocks rose in Europe and yields on Treasuries declined.
West Texas Intermediate crude dropped 1.8 percent to $53.15 a barrel at 11:33 a.m. in London and the Bloomberg Commodity Index (BCOM), which tracks 22 products from crude to copper, decreased 0.7 percent. Saudi Arabia’s Tadawul All Share Index lost 3 percent, after King Abdullah was admitted to hospital for medical checks. The Stoxx Europe 600 Index advanced 0.3 percent and futures on the Standard & Poor’s 500 Index were little changed. Yields on 10-year Treasury notes fell two basis points to 2.17 percent.
Crude’s 45 percent tumble this year, spurred by the largest U.S. output in three decades and OPEC’s refusal to cut production, has roiled global markets and hurt energy-producing nations including Russia, whose ruble had its steepest annual retreat since 1998. Initial jobless claims in the U.S. increased in the week ended Dec. 27 and pending home sales climbed in November, economists forecast before reports today.
“The drop in oil added much more volatility to markets,” said Louis de

Oil Set for Biggest Slump Since 2008 as OPEC Battles U.S. Shale

By Grant Smith

Oil headed for the biggest annual decline since the 2008 global financial crisis as U.S. producers and the Organization of Petroleum Exporting Countries ceded no ground in their battle for market share amid a supply glut.
Futures slid as much as 2.2 percent in New York, bringing losses for 2014 to 46 percent. U.S. guidelines allowing overseas sales of ultralight oil without government approval may boost the country’s export capacity and “throw a monkey wrench” into Saudi Arabia’s plan to curb American output, according to Citigroup Inc. U.S. crude inventories are forecast to rise to the highest level for this time of the year in three decades.
Oil’s slump has roiled markets from the Russian ruble to the Nigerian naira and squeezed government budgets in producing nations including Venezuela and Ecuador. It’s also boosted China’s emergency crude reserves and helped shrink fuel subsidies in India and Indonesia. OPEC has signaled it won’t cut supply to influence prices, instead preferring to defend market share amid an

Wednesday 31 December 2014

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