The document provides an overview of key concepts for covering stock markets and shares, including:
- What a share represents in terms of ownership stake and entitlement to profits
- Factors that influence share prices such as supply and demand, the economy, and company earnings
- How share prices reflect market expectations about a company's future performance
- Tools for analyzing stocks such as indexes, sectors, market capitalization, price-earnings ratios, and technical indicators
- Sources of information like brokerage ratings and finding contextual factors behind price movements
JPM Prime Brokerage Global Hedge Fund Trends September 2013Brian Shapiro
- Hedge funds posted an aggregate loss of -0.73% in August as risk assets sold off broadly due to renewed macro concerns. Event driven strategies fared best with a loss of -0.04% while global macro suffered most with a decline of -1.20%.
- Gross leverage for equity strategies on JPMorgan's prime brokerage platform fell from 1.84 to 1.82 as net exposure declined from 0.78 to 0.74.
- Several large endowments are shifting exposures from hedge funds to long-only strategies in search of isolating alpha generation.
Central banks have convinced investors that inflation will rise, causing a rotation out of safe haven assets like tech and into riskier sectors like financials. The document discusses two market sequences: 1) how central bank comments on rising inflation led to a shift out of tech and into financials, and 2) how oil saw a corrective rally but is expected to resume its decline toward $40. Trades are suggested shorting tech like the Nasdaq 100 and going long financials and oil based on expected trends. Upcoming economic reports and central bank minutes are seen as potential market movers.
SGMT Capital September 2016 Investor Letter FinalDavid Smith
The SGMT trading system had a gross return of 3.17% in September 2016. The FED decided to hold rates in September due to conflicting economic data and a split vote. Markets remained volatile due to uncertainty from the FED and lack of clear economic signals. SGMT positioning was proven correct by following Yellen and adjusting to evolving forecasts and market conditions.
FOMC meeting crucial for forex and commoditiesHantec Markets
After the huge swing in positioning for the Fed to turn dovish, this week's meeting of the FOMC will be crucial for the medium term outlook on financial markets. We look at the impact on forex, equities and commodities markets in the coming days.
Political risk of a trade war continues to drive sentimentHantec Markets
Political risk remains key moving into what looks to be a quiet week on financial markets. How the issue of US trade tariffs continues to develop over the coming days will be key for sentiment. Will protectionist fears subside or proliferate? We look at the outlook for financial markets and impact on forex, equity indices and commodities.
The document discusses investment outlooks for 2016. Key points include:
- Continued low global growth is expected, along with subdued inflation and accommodative monetary policy.
- Risks remain skewed downward, and markets could become volatile on negative news.
- In equities, favor areas with economic tailwinds like the Eurozone, Japan, and US financial and consumer sectors.
- In fixed income, favor a balanced approach including credit sensitive sectors like high yield bonds and senior loans.
Payrolls affecting markets with inflation in focus this weekRichard Perry
Traders continue to react to the mixed Non-farm Payrolls report on Friday that hampers building expectation for a fourth rate hike by the Fed this year. However attention will turn back to US inflation this week, with the core CPI data, whilst Trump's trade tariffs are still on investors' minds. We consider the outlook for forex, equity indices and commodities markets.
JPM Prime Brokerage Global Hedge Fund Trends September 2013Brian Shapiro
- Hedge funds posted an aggregate loss of -0.73% in August as risk assets sold off broadly due to renewed macro concerns. Event driven strategies fared best with a loss of -0.04% while global macro suffered most with a decline of -1.20%.
- Gross leverage for equity strategies on JPMorgan's prime brokerage platform fell from 1.84 to 1.82 as net exposure declined from 0.78 to 0.74.
- Several large endowments are shifting exposures from hedge funds to long-only strategies in search of isolating alpha generation.
Central banks have convinced investors that inflation will rise, causing a rotation out of safe haven assets like tech and into riskier sectors like financials. The document discusses two market sequences: 1) how central bank comments on rising inflation led to a shift out of tech and into financials, and 2) how oil saw a corrective rally but is expected to resume its decline toward $40. Trades are suggested shorting tech like the Nasdaq 100 and going long financials and oil based on expected trends. Upcoming economic reports and central bank minutes are seen as potential market movers.
SGMT Capital September 2016 Investor Letter FinalDavid Smith
The SGMT trading system had a gross return of 3.17% in September 2016. The FED decided to hold rates in September due to conflicting economic data and a split vote. Markets remained volatile due to uncertainty from the FED and lack of clear economic signals. SGMT positioning was proven correct by following Yellen and adjusting to evolving forecasts and market conditions.
FOMC meeting crucial for forex and commoditiesHantec Markets
After the huge swing in positioning for the Fed to turn dovish, this week's meeting of the FOMC will be crucial for the medium term outlook on financial markets. We look at the impact on forex, equities and commodities markets in the coming days.
Political risk of a trade war continues to drive sentimentHantec Markets
Political risk remains key moving into what looks to be a quiet week on financial markets. How the issue of US trade tariffs continues to develop over the coming days will be key for sentiment. Will protectionist fears subside or proliferate? We look at the outlook for financial markets and impact on forex, equity indices and commodities.
The document discusses investment outlooks for 2016. Key points include:
- Continued low global growth is expected, along with subdued inflation and accommodative monetary policy.
- Risks remain skewed downward, and markets could become volatile on negative news.
- In equities, favor areas with economic tailwinds like the Eurozone, Japan, and US financial and consumer sectors.
- In fixed income, favor a balanced approach including credit sensitive sectors like high yield bonds and senior loans.
Payrolls affecting markets with inflation in focus this weekRichard Perry
Traders continue to react to the mixed Non-farm Payrolls report on Friday that hampers building expectation for a fourth rate hike by the Fed this year. However attention will turn back to US inflation this week, with the core CPI data, whilst Trump's trade tariffs are still on investors' minds. We consider the outlook for forex, equity indices and commodities markets.
Trump continues to be a driver of market sentimentHantec Markets
Traders that have been getting worked up by the impact of "risk on, risk off" are now having to get used to this morphing into "Trump on, Trump off" (as dreadful as this sounds). You even have some expanding this with "Trumpflation" and "Donald down", but this will be the final time you hear these terrible terms on these pages. Anyway, Donald Trump continues to have a significant impact on market sentiment across financials with forex and commodities especially driving off moves on Treasury yields and the dollar. With a light economic calendar this is likely to continue this week.
This document introduces topics that will be covered in a course on financial markets and institutions. It provides an overview of why these topics are important to study, including how financial markets and interest rates impact individuals, businesses, and the economy. The three main financial markets discussed are the bond market, stock market, and foreign exchange market. The roles of the Federal Reserve, central banks, and other financial institutions are also introduced. The document outlines how the course will use analytical frameworks, case studies, problems, and web exercises to explore these concepts.
The portfolio manager reviewed his top trade ideas from 2008-2009. His best performing long trade was China Mengniu Dairy, which rose 190 percentage points after a milk scandal. His favorite trade, Korea Exchange Bank, was a loser rising only 1% as a legal dispute dragged on. For 2008, his four high conviction winners included Mengniu while his losers were energy sector shorts. In 2009, four of six high conviction calls were longs that collectively outperformed the index by 662 percentage points, while retail sector shorts lost money. The analysis found bottom-up stock ideas performed best while top-down thematic calls generally underperformed. Going forward, the portfolio manager intends to provide more fundamental bottom-up ideas than
Trade talks still dominate sentiment with focus on US GDPHantec Markets
The outcome of the trade negotiations between the US and China will continue to impact on market sentiment this week, but the tier one US data will also be in focus with Advance GDP and the Fed's preferred inflation measure along with the forward looking PMIs all key. We look at the impact on forex, equities and commodities.
Join our FREE Forex e-course: http://tradinginsingapore.com/forex-ecourse/
Forex trading for dummies. Lear how to master the markets in just 30 minutes. This free ebook Forex trading for dummies will help you learn how to trade Forex market and become a successful trader.
Markets still coming to terms with China devaluation this weekHantec Markets
Market sentiment has been rocked hugely by the shock decision of the People’s Bank of China to devalue the yuan last week. The move is twofold, helping to liberalise the currency in preparation for potentially making it into the basket of the International Monetary Fund’s basket of Special Drawing Rights, but also will help China to benefit in the wake of ongoing economic slowdown.
The document contains three proposals for small business profiles to cover:
1. A Chinese company called Yage Era Corp. that deletes negative posts and links online for clients and how it navigates regulations in a growing market.
2. A cat cafe in Hong Kong called The Cat Cafe that lost its restaurant license but continues operating as a cooking school with resident cats.
3. A music therapy center in Hong Kong called Pang's Music Therapy Center that offers treatments to both special needs and normal clients, and the growing but limited market for music therapy in Hong Kong.
The document provides an overview of analyzing corporate profit and loss statements. It discusses key components of a P&L statement such as revenue, expenses, profit, earnings per share, and how it shows the path from revenue to net profit. It also discusses interpreting P&L statements, including checking footnotes and understanding the treatment of items like depreciation, subsidiaries versus associates, and minority interests. An example P&L statement is then presented for Hutchison Whampoa Limited to demonstrate these concepts.
The stock market rebounded after earlier losses as concerns eased over European banks' access to funding. French banks reassured markets and investors watched for progress on Europe's debt crisis. Major U.S. stock indices ended higher, led by gains in industrial, materials and tech stocks, as signs pointed to stabilization in the markets.
PCCW reported a 20% decline in first-half net profit due to lower revenue contribution from its property development unit. Net profit fell to HK$656 million from HK$822 million a year earlier, while revenue declined 2% to HK$11.37 billion, mainly due to smaller contribution from its property development subsidiary. Revenue from PCCW's core telecommunications services rose 11% and from its broadband TV business increased 45%, but it did not offset the decline in property revenue. An analyst said net profit was below expectations due to continued investment in the TV business.
The document provides an overview of covering company news as a financial journalist. It discusses why companies exist, the differences between private and public companies, and how public corporations function. It also outlines various types of corporate stories to cover, including earnings announcements, new products/business lines, executive changes, initial public offerings, and secondary fundraising. Key details on how to report on these stories such as common questions to ask and elements to include in articles are also reviewed.
This document provides an overview of foreign exchange and bond markets. It discusses the major global currencies and daily forex trading volumes. It also outlines factors that influence currency values such as interest rates, inflation, and trade imbalances. Additionally, it defines what bonds are, how bond markets work, and key factors like interest rates and credit ratings that affect bond prices. Yield curves and spreads are also explained as tools used in analyzing bond markets.
This document provides an introduction to economic journalism. It defines economics as the study of how people deal with scarcity and make choices about allocating limited resources. Key economic concepts discussed include supply and demand, incentives, business cycles, and how governments measure and influence economic performance. The role of economic journalists is to provide context and perspective on these issues.
This document provides an overview of a course on global financial journalism. It discusses key themes like how everything in today's global financial system is interrelated and how business journalism isn't just about numbers but also about people. It defines what constitutes business news and explains why business journalism is important. The document outlines learning outcomes, assignments students will complete, reading assignments, the assessment process, and the course schedule. The goal is for students to learn to write different types of business news stories and analyze financial documents and events.
This document provides an overview of financial markets for journalists. It discusses the key characteristics of markets, including that they bring together buyers and sellers, allow standardized trading of fungible products by any participant, and make trade information public. The document also summarizes the main types of financial markets like commodities, stocks, bonds and forex, and the participants, price formation processes, and factors that influence prices in these markets.
This document provides an introduction to economic indicators for journalism students. It defines economic indicators as data used to evaluate the health of an economy. It discusses established indicators like the Consumer Price Index and copper prices. It also categorizes indicators as lagging, coincident, or leading in relation to economic activity. The document advises that good indicators are original, measure important economic activity accurately and consistently, and correlate closely with broader economic measures. It gives some hypothetical alternative indicators as examples from past classes.
The document provides an overview of key concepts related to covering stock markets, including what a stock is, initial public offerings, factors that influence share prices, and how to analyze different aspects of the market such as indexes, sectors, and individual stock prices and performance. It offers guidance on finding news and context, researching sectors, and structuring market commentary with introductions to change, cause, expectations, comments, context, and future implications. The document is intended as a reference for journalists reporting on financial markets.
The document discusses key economic goals of governments including full employment, steady annual growth, and stable prices. It then covers concepts of absolute and comparative advantage in determining what goods countries will produce. It provides an overview of common economic indicators used to measure economic performance such as GDP, CPI, unemployment, and money supply. It also discusses important considerations for analyzing and reporting on economic data.
This document provides an overview of financial markets for journalism students. It discusses the main types of financial markets (commodities, stocks, foreign exchange, bonds, derivatives), how they operate (floor trading, electronic trading, private markets), and the participants (retail and institutional investors, companies, governments). It also covers how prices are formed through bids and offers, the importance of prices, factors influencing different market movements, and key concepts like indexes, interest rates, and trade imbalances.
The document summarizes GLC's comments on the impact of the 2011 Japanese earthquake on the economy and capital markets. It notes the Japanese economy will take a hit but rebound due to rebuilding, while the global economic impact is expected to be modest. In capital markets, a short-term sell-off has occurred but stocks and commodities are expected to regain strength. GLC advisors recommend investors stick to their long-term plans and diversified portfolios.
This document analyzes the fundamental factors affecting stock prices on the Indian stock market index SENSEX. It examines previous research on factors influencing stock markets in India and internationally. The paper identifies critical variables with a significant effect on stock price movements and aims to establish relationships between explanatory variables and stock prices. Factor analysis is used to condense variables into critical factors influencing stock prices. The analysis finds higher earnings, returns on investment, growth potential and favorable valuations positively impact stock prices, while higher risk and volatility have negative impacts. These factors can help investors, corporations and brokers make better investment decisions.
Trump continues to be a driver of market sentimentHantec Markets
Traders that have been getting worked up by the impact of "risk on, risk off" are now having to get used to this morphing into "Trump on, Trump off" (as dreadful as this sounds). You even have some expanding this with "Trumpflation" and "Donald down", but this will be the final time you hear these terrible terms on these pages. Anyway, Donald Trump continues to have a significant impact on market sentiment across financials with forex and commodities especially driving off moves on Treasury yields and the dollar. With a light economic calendar this is likely to continue this week.
This document introduces topics that will be covered in a course on financial markets and institutions. It provides an overview of why these topics are important to study, including how financial markets and interest rates impact individuals, businesses, and the economy. The three main financial markets discussed are the bond market, stock market, and foreign exchange market. The roles of the Federal Reserve, central banks, and other financial institutions are also introduced. The document outlines how the course will use analytical frameworks, case studies, problems, and web exercises to explore these concepts.
The portfolio manager reviewed his top trade ideas from 2008-2009. His best performing long trade was China Mengniu Dairy, which rose 190 percentage points after a milk scandal. His favorite trade, Korea Exchange Bank, was a loser rising only 1% as a legal dispute dragged on. For 2008, his four high conviction winners included Mengniu while his losers were energy sector shorts. In 2009, four of six high conviction calls were longs that collectively outperformed the index by 662 percentage points, while retail sector shorts lost money. The analysis found bottom-up stock ideas performed best while top-down thematic calls generally underperformed. Going forward, the portfolio manager intends to provide more fundamental bottom-up ideas than
Trade talks still dominate sentiment with focus on US GDPHantec Markets
The outcome of the trade negotiations between the US and China will continue to impact on market sentiment this week, but the tier one US data will also be in focus with Advance GDP and the Fed's preferred inflation measure along with the forward looking PMIs all key. We look at the impact on forex, equities and commodities.
Join our FREE Forex e-course: http://tradinginsingapore.com/forex-ecourse/
Forex trading for dummies. Lear how to master the markets in just 30 minutes. This free ebook Forex trading for dummies will help you learn how to trade Forex market and become a successful trader.
Markets still coming to terms with China devaluation this weekHantec Markets
Market sentiment has been rocked hugely by the shock decision of the People’s Bank of China to devalue the yuan last week. The move is twofold, helping to liberalise the currency in preparation for potentially making it into the basket of the International Monetary Fund’s basket of Special Drawing Rights, but also will help China to benefit in the wake of ongoing economic slowdown.
The document contains three proposals for small business profiles to cover:
1. A Chinese company called Yage Era Corp. that deletes negative posts and links online for clients and how it navigates regulations in a growing market.
2. A cat cafe in Hong Kong called The Cat Cafe that lost its restaurant license but continues operating as a cooking school with resident cats.
3. A music therapy center in Hong Kong called Pang's Music Therapy Center that offers treatments to both special needs and normal clients, and the growing but limited market for music therapy in Hong Kong.
The document provides an overview of analyzing corporate profit and loss statements. It discusses key components of a P&L statement such as revenue, expenses, profit, earnings per share, and how it shows the path from revenue to net profit. It also discusses interpreting P&L statements, including checking footnotes and understanding the treatment of items like depreciation, subsidiaries versus associates, and minority interests. An example P&L statement is then presented for Hutchison Whampoa Limited to demonstrate these concepts.
The stock market rebounded after earlier losses as concerns eased over European banks' access to funding. French banks reassured markets and investors watched for progress on Europe's debt crisis. Major U.S. stock indices ended higher, led by gains in industrial, materials and tech stocks, as signs pointed to stabilization in the markets.
PCCW reported a 20% decline in first-half net profit due to lower revenue contribution from its property development unit. Net profit fell to HK$656 million from HK$822 million a year earlier, while revenue declined 2% to HK$11.37 billion, mainly due to smaller contribution from its property development subsidiary. Revenue from PCCW's core telecommunications services rose 11% and from its broadband TV business increased 45%, but it did not offset the decline in property revenue. An analyst said net profit was below expectations due to continued investment in the TV business.
The document provides an overview of covering company news as a financial journalist. It discusses why companies exist, the differences between private and public companies, and how public corporations function. It also outlines various types of corporate stories to cover, including earnings announcements, new products/business lines, executive changes, initial public offerings, and secondary fundraising. Key details on how to report on these stories such as common questions to ask and elements to include in articles are also reviewed.
This document provides an overview of foreign exchange and bond markets. It discusses the major global currencies and daily forex trading volumes. It also outlines factors that influence currency values such as interest rates, inflation, and trade imbalances. Additionally, it defines what bonds are, how bond markets work, and key factors like interest rates and credit ratings that affect bond prices. Yield curves and spreads are also explained as tools used in analyzing bond markets.
This document provides an introduction to economic journalism. It defines economics as the study of how people deal with scarcity and make choices about allocating limited resources. Key economic concepts discussed include supply and demand, incentives, business cycles, and how governments measure and influence economic performance. The role of economic journalists is to provide context and perspective on these issues.
This document provides an overview of a course on global financial journalism. It discusses key themes like how everything in today's global financial system is interrelated and how business journalism isn't just about numbers but also about people. It defines what constitutes business news and explains why business journalism is important. The document outlines learning outcomes, assignments students will complete, reading assignments, the assessment process, and the course schedule. The goal is for students to learn to write different types of business news stories and analyze financial documents and events.
This document provides an overview of financial markets for journalists. It discusses the key characteristics of markets, including that they bring together buyers and sellers, allow standardized trading of fungible products by any participant, and make trade information public. The document also summarizes the main types of financial markets like commodities, stocks, bonds and forex, and the participants, price formation processes, and factors that influence prices in these markets.
This document provides an introduction to economic indicators for journalism students. It defines economic indicators as data used to evaluate the health of an economy. It discusses established indicators like the Consumer Price Index and copper prices. It also categorizes indicators as lagging, coincident, or leading in relation to economic activity. The document advises that good indicators are original, measure important economic activity accurately and consistently, and correlate closely with broader economic measures. It gives some hypothetical alternative indicators as examples from past classes.
The document provides an overview of key concepts related to covering stock markets, including what a stock is, initial public offerings, factors that influence share prices, and how to analyze different aspects of the market such as indexes, sectors, and individual stock prices and performance. It offers guidance on finding news and context, researching sectors, and structuring market commentary with introductions to change, cause, expectations, comments, context, and future implications. The document is intended as a reference for journalists reporting on financial markets.
The document discusses key economic goals of governments including full employment, steady annual growth, and stable prices. It then covers concepts of absolute and comparative advantage in determining what goods countries will produce. It provides an overview of common economic indicators used to measure economic performance such as GDP, CPI, unemployment, and money supply. It also discusses important considerations for analyzing and reporting on economic data.
This document provides an overview of financial markets for journalism students. It discusses the main types of financial markets (commodities, stocks, foreign exchange, bonds, derivatives), how they operate (floor trading, electronic trading, private markets), and the participants (retail and institutional investors, companies, governments). It also covers how prices are formed through bids and offers, the importance of prices, factors influencing different market movements, and key concepts like indexes, interest rates, and trade imbalances.
The document summarizes GLC's comments on the impact of the 2011 Japanese earthquake on the economy and capital markets. It notes the Japanese economy will take a hit but rebound due to rebuilding, while the global economic impact is expected to be modest. In capital markets, a short-term sell-off has occurred but stocks and commodities are expected to regain strength. GLC advisors recommend investors stick to their long-term plans and diversified portfolios.
This document analyzes the fundamental factors affecting stock prices on the Indian stock market index SENSEX. It examines previous research on factors influencing stock markets in India and internationally. The paper identifies critical variables with a significant effect on stock price movements and aims to establish relationships between explanatory variables and stock prices. Factor analysis is used to condense variables into critical factors influencing stock prices. The analysis finds higher earnings, returns on investment, growth potential and favorable valuations positively impact stock prices, while higher risk and volatility have negative impacts. These factors can help investors, corporations and brokers make better investment decisions.
Comments On The Japanese Earthquake And Current MarketMartin Leduc
The document summarizes GLC's comments on the impact of the 2011 Japanese earthquake on capital markets and the global economy. It notes that markets initially saw a sharp sell-off and flight to safe assets like US Treasuries and gold. The Japanese economy will be negatively impacted in the short-term but is expected to rebound due to rebuilding. The global economic impact is forecast to be modest as production can be sourced elsewhere. Market volatility is predicted to be short-lived as the situation becomes clearer. Investors are advised to maintain a diversified portfolio and long-term perspective.
This document is the first chapter of a textbook on financial markets and institutions. It introduces why students should study these topics and provides an overview of what will be covered. The chapter discusses the major financial markets for bonds, stocks, and foreign exchange. It also explains how financial institutions operate these markets and facilitate the flow of funds from savers to borrowers. The chapter concludes by outlining the basic analytical frameworks and learning objectives that will guide the course.
The euphoria of the past year carried into the first quarter of 2014 only to be rudely interrupted by geopolitical events as Russia took over the Crimea. The hue and outcry was heard around the world and global markets were shaken by this event.
Markets Corrects Amidst Economic Uncertainty Aug 5 2011ll19046
The document summarizes a market correction that occurred in early August 2011 due to fears about the global economy and Europe's debt crisis. Investors grew nervous and stock markets declined, erasing year-to-date gains. While economic data didn't indicate an imminent double dip recession, macro concerns were overriding market fundamentals in the short term. The author recommends keeping a long term perspective, as volatility creates opportunities and market fundamentals will ultimately prevail.
This document provides an introduction to economic indicators for journalism students. It defines economic indicators as data used to evaluate the health of an economy and gives examples like the Consumer Price Index. It describes different types of indicators such as lagging, coincident, and leading indicators. The document discusses qualities of a good indicator and past student examples. It also notes that indicators should be original, measure an important activity accurately, and correlate with broader economic measures.
This document provides an overview of the current volatile market environment and outlines 10 rules of thumb for navigating periods of increased volatility. It discusses recent declines in major indexes and rise in market volatility. While the authors' base case sees continued slow economic and earnings growth, they note several signs of uncertainty globally. The 10 rules of thumb focus on identifying companies with organic growth opportunities, flexible finances, strong cash flow, and earnings quality to invest successfully through the market cycle.
This document provides an overview of covering foreign exchange and bond markets in business and financial journalism. It discusses the major global currencies traded in forex markets, how currency prices are determined by interest rates, inflation, and trade balances. It also explains what bonds are, how they are quoted and traded, and how interest rates and inflation can impact bond prices. The document contains guidance on reporting on factors that influence currency and bond market movements.
The document provides an overview of market conditions in December 2018, noting high levels of uncertainty from political, economic, and policy factors. It summarizes that markets have seen steep declines with many sectors and companies in correction or bear market territory. However, it notes that asset classes often see mean reversion over the long run and emphasizes the importance of diversification. The document also reviews the Federal Reserve's recent interest rate hike and comments, as well as concerns over global trade tensions dampening company revenues.
This document provides an overview of stocks and the stock market. It defines what stocks are, including common stock and different types. It discusses factors that influence stock prices such as company news, earnings, and investor sentiment. It introduces several major stock indices like the Dow Jones Industrial Average and S&P 500. It also explains why stock prices change in both the short-term due to news and long-term due to company fundamentals like earnings. The document is meant as an educational guide for understanding stocks and the stock market.
This document discusses volatility and provides strategies for managing risk. It begins by stating that moderate volatility is healthy for financial markets as it separates strong from weak investments. The document then discusses three components needed for a well-functioning financial system: cognitive diversity among investors, full disclosure of information, and rewards/penalties for correct/incorrect views. It suggests investors should focus on owning businesses rather than reacting to market fluctuations, and construct diversified portfolios that are not overly correlated with any single index. Strategies discussed for managing risk include owning a variety of assets, investing globally for currency exposure benefits, and focusing on long-term goals rather than short-term volatility.
JPM Prime Brokerage Global Hedge Fund Trends November 2013Brian Shapiro
Hedge funds posted broad gains in October and year-to-date, led by equity long/short and event-driven strategies. Leverage declined slightly while short positions increased 2%. Most regions saw increased equity prices and tightening credit spreads. Earnings exceeded estimates but revenue growth was flat, raising uncertainty around sustained earnings growth. Global earnings forecasts continue to decline.
This document provides a summary of market conditions and investment opportunities in May 2016. It notes that investor sentiment has been unusually neutral for an extended period. Real estate markets in Vancouver and Toronto have seen large price increases, which some see as a distortion caused by low interest rates. Earnings are expected to decline in the first quarter of 2016 but resume growth in the second half of the year. Three sectors - healthcare, telecommunications, and consumer discretionary - are expected to see earnings growth. Within consumer discretionary, strong double-digit earnings growth is forecast for retailing, consumer services, and other sub-sectors.
The document summarizes the reaction of markets to a recent agreement by European leaders to address the sovereign debt crisis. It notes that stock prices rose significantly as investors were relieved by the three-point deal involving Greek debt relief and boosting the bailout fund. However, details remain unclear and challenges loom with the U.S. debt panel deadline approaching. Overall investors were in a relief rally but surprises can still occur as with sudden market moves or unexpected weather, much like the forecasting abilities of analysts and meteorologists.
This document provides an overview of mergers and acquisitions (M&A), initial public offerings (IPOs), and international trade. It discusses different types of M&A deals, global M&A activity from 2004-2012, the M&A process, questions to consider in M&A deals, and valuations. It also covers the IPO process, trade terminology, arguments for and against free trade, government trade policies, and the relationship between trade and currency values.
The banking system channels savings from individuals to borrowers. As financial intermediaries, commercial banks take deposits and make loans. They must keep a portion of deposits as reserves set by the central bank. When the reserve ratio is lower, banks can lend out more, expanding the money supply through the money multiplier effect. Non-bank financial institutions also participate in shadow banking.
The document provides an overview of international trade concepts including absolute advantage, comparative advantage, trade barriers, and trade policies. It discusses how free trade creates winners and losers between importing and exporting countries. Specifically, domestic consumers in importing countries and domestic producers in exporting countries tend to benefit from free trade, while the opposite is true for domestic consumers in exporting countries and domestic producers in importing countries. The document also outlines the effects of tariffs on prices and trade volumes.
This document provides an overview of government economic policy tools used by central banks and finance ministries. It discusses fiscal policy tools like taxation and government spending and how they can be used to stimulate or contract the economy. It also explains monetary policy tools controlled by central banks, including interest rates, required reserve ratios, and open market operations to influence money supply and achieve goals of steady growth and low inflation. Specific policy examples from the US, UK, Japan, and Europe are also mentioned.
This document provides an overview of economics concepts for journalists. It discusses three main types of corporate financial disclosures - profit and loss statements, balance sheets, and cash flow statements. When reporting on earnings, journalists should focus on net profit and revenue year-over-year changes. The document also summarizes an article about Hong Kong's Hutchison Whampoa reporting a 12% rise in profits and explains economic growth and business cycles.
Hutchison Whampoa reported a 12% rise in net profit to HK$14.17 billion in 2009, despite a 14% drop in revenue to HK$300.55 billion. Gains from property and asset sales offset losses in its energy and 3G businesses. While losses in 3G operations fell 67%, the division is still dragging on earnings. However, results from property completions and asset sales boosted profits.
This document provides an overview of corporations for journalism students. It discusses why companies exist, the difference between private and public companies, key industries, how public companies function, costs and profit, types of corporate stories to cover, and earnings announcements. The document is from a class on economics for journalists that focuses on reviewing supply and demand, examining the economic efficiency of gifts, and discussing corporations.
This document provides an overview of week 2 topics from an economics course for journalists, including supply and demand. It discusses key concepts such as scarcity, opportunity costs, comparative advantage, and how supply and demand determine market prices. Government policies like rent control are also examined. An example writing assignment is given asking students to explain why a dog walker earns more than nurses based on economic concepts from class. Assessment criteria for the assignments focus on correctly applying relevant economic ideas and constructing a logical argument.
This document provides an introduction and overview for a course on economics for journalists. It defines economics as the study of how people deal with scarcity and make choices with trade-offs. The course will cover topics like how economies, companies, banks, markets and governments work, and economic theories. Students will write assignments, do a group project, and take a midterm and final exam. The instructor emphasizes applying economic concepts clearly and citing sources to avoid plagiarism. The first assignment is to set up an RSS reader for daily economic news and write an economic diary entry.
The document discusses initial public offerings (IPOs) and the IPO process. It explains that an IPO is the sale of shares in a private company to investors, resulting in the listing of the company on a stock exchange. The IPO process involves several steps, including announcing the intention to list, appointing an underwriter, setting an indicative price range, determining subscription levels, and finalizing the pricing before the company's shares are listed. The document provides details on these various stages to educate about fundamentals of business and financial journalism related to IPOs.
The document discusses mergers and acquisitions (M&A) and initial public offerings (IPOs). It defines different types of M&A transactions like mergers, acquisitions, take privates, and joint ventures. It also outlines the M&A process including initiation, due diligence, shareholder votes, integration, and questions to consider in M&A deals. Additionally, it covers global M&A trends in recent years and methods for valuing transactions.
The document discusses key economic indicators such as GDP, CPI, unemployment rates, and confidence indexes. It explains how governments and central banks use tools like fiscal policy, monetary policy, interest rates, and reserve ratios to influence economic goals of steady growth, low unemployment, and stable prices. Specific indicators covered in depth include CPI, which can have issues due to arbitrary baselines and basket changes over time, and unemployment rates, which don't include discouraged workers.
Indonesia's economy grew at its fastest pace since 2008 in the first quarter of 2010, expanding 5.7% year-over-year driven by increased household spending, business investment, and exports. This exceeded economists' median growth forecast of 5.78% and reversed the previous quarter's contraction, showing Indonesia's economic recovery remains on track. Strong growth, stable inflation, and improved politics are expected to foster a better investment environment going forward.
The document provides an overview of key corporate financial disclosure documents including the directors' report, auditor's report, profit and loss statement, balance sheet, and cash-flow statement. It discusses the importance of these documents for understanding a company's financial performance and position. The profit and loss statement is described as a roadmap from revenue to net profit, and the balance sheet provides a snapshot of a company's assets and liabilities. Footnotes and definitions of common financial ratios are also provided.
This document provides an overview of key topics in covering company news and corporate disclosure, including:
1) It discusses different types of corporate stories journalists may cover, such as IPOs, M&A deals, and earnings announcements.
2) It outlines various models for writing spot news articles and commentary pieces on corporate developments.
3) It provides guidance on how to approach covering specific corporate events like new product launches, executive changes, and secondary share offerings.
4) It explains key components of corporate disclosure documents like annual reports and what financial information journalists should focus on.
This document provides an overview of fundamentals of business and financial journalism, focusing on covering corporate earnings stories. It discusses key elements to include in earnings stories such as the change in net profit from the previous year, the cause of the change, market expectations, context about the company and industry, and comments from executives and analysts. It also reviews common structures for earnings stories and financial measures to consider beyond just net profit.
This document provides an overview of covering financial markets for business and financial journalism. It discusses using Twitter to follow market news sources, the types of information needed to report on markets, and characteristics of markets like bringing together buyers and sellers. It also covers topics like market participants, price formation, types of financial markets and trading methods, and where to find different elements like causes and context for market commentary. The goal is to equip journalists with fundamental knowledge for reporting on financial markets.
2. What’s a share?
✤ Entitles owner to a partial ownership stake in a company
✤ Entitles owner to a (small) share in everything the company owns,
including its profits
✤ Net profit = profit attributable to shareholders
✤ Dividends are paid to shareholders from net profit
✤ Does not entitle owner to a management role in the company
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3. What moves share prices?
✤ Supply & Demand
✤ The broader economy
✤ Economic growth
✤ Inflation/interest rates
✤ Prices of other assets
✤ Company earnings, especially expectations of future earnings
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4. Share prices are news because...
✤ They reflect market participants’ expectations of the future
performance of that company
✤ And those expectations are focused on how much those companies
will earn in the future (net profit)
✤ Changes in those expectations lead to changes in share prices
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5. Advance prep
✤ Get a list of potential market sources – and their contact details –
ready beforehand
✤ You’re welcome and encouraged to share sources
✤ Try to start writing your comment before market close
✤ Much of background (on global/local events) can be prepared in
advance
✤ Can use “told Reuters” quotes if totally unable to get own quotes/
good quotes.
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6. Breaking down the stock market
✤ Benchmark index
✤ Sectoral sub-indexes
✤ Individual share prices
✤ Compare individual prices with other prices and sub-indexes
✤ The index doesn’t tell the whole story: it’s a market of stocks
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7. Writing about indexes & averages
✤ Focus (usually) on the benchmark index in your lede, but don’t
neglect sector indexes or broader indexes
✤ Comparisons between indexes can be illuminating
✤ Use percentage change for daily moves
✤ Has a trend been broken?
✤ Has a new high or low been reached?
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8. Hong Kong stock indexes
Source: Hang Seng Indexes (12:00pm Feb. 28, 2013)
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9. Top 10 Hang Seng Index levels
Source: Hong Kong Exchanges, data as of Sept. 31, 2010
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10. Sector Research
✤ Sectors broken into industries
✤ Compare individual companies with their industries to find stories
✤ Individual sectors often have their own market sub-indexes, for easy
comparison
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12. Writing about shares
✤ A good stock market comment delves below the index to look at the
individual shares driving the market activity
✤ Always check moves of big market-cap shares
✤ Look at market breadth: number of “gainers” vs. “decliners”
✤ An indication of the conviction of sentiment
✤ Don’t forget about volume
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13. Market
capitalization
✤ Total shares outstanding
multiplied by current share
price
✤ A measure of the size of a
company
✤ Denominated in a particular
currency
✤ Used to weight shares in a
market index Source: Google Finance
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15. Stock Analysis
✤ Fundamental
✤ Examines company’s finances, operations relative to competition
✤ Focus on ratio analysis
✤ Technical
✤ Examines company’s past stock price & trading volume for clues to
future
✤ Focus on chart patterns
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16. Price/earnings
ratio
✤ Current share price divided by
earnings per share
✤ A measure of how “cheap” or
“expensive” a share is
✤ Can be based on past earnings
or predicted future earnings
✤ Compare individual share’s
P/E with market or sector
average Source: Google Finance
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17. Technical Measures
✤ Support & Resistance
✤ Moving averages
✤ Visual chart patterns: head and shoulders
✤ Relative strength, stochastics, Bollinger bands
✤ Volume analysis: upticks and downticks
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18. Support & Resistance
Resistance
Support
20-day
moving
average
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19. Brokerage Ratings
✤ Brokers initiate coverage, then upgrade or downgrade
✤ Based on expectations of future earnings
✤ Range from “buy” to “sell,” with different jargon
✤ Sell recommendations are seldom issued
✤ Upgrades/downgrades can affect a stock’s price
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20. Finding “cause”
✤ Any big economic news?
✤ Any major local news?
✤ What’s happening in other markets?
✤ Look for sector-wide moves, then individual share moves
✤ Don’t always believe traders’ explanations
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21. Finding “context”
02 Oct 2006 07:40 GMT DJ Tokyo Shares End Up For 4th Session On Exporter Gains
TOKYO (Dow Jones)--Strength in export-oriented shares helped guide Japan's stock market higher for the fourth straight session
Monday, but market watchers said the market's sluggish volume indicates the rally will have a tough time overcoming strong resistance
in coming sessions.
The Nikkei 225 Stock Average rose 126.71 points, or 0.8%, to 16254.29. Monday's gain followed a combined 570.13-point rise in the
previous three sessions, including a 102.73 rise last Friday. It was the first time in almost three months that Japan's market had a
four-session winning streak.
Blue-chip exporters such as Canon and Honda led the way, boosted by a drop in the yen to its lowest level against the dollar since Apr.
17 and the stronger-than-expected corporate sentiment reflected in the Bank of Japan's "tankan" survey released earlier Monday.
Canon closed 1.6% higher at Y6,260 while Honda gained 2.5% to Y4,070.
Still, volume for the day was 1.606 billion shares on the TSE's first section, or Y2.3 trillion by value - below the 100-day moving
average of 1.686 billion shares.
"The biggest weakness is the sluggish volume," said Hiroshi Arano, an adviser at Dai-ichi Kangyo Asset Management.
For the rally to overcome near-term resistance between 16300 and 16400 this week, volume needs to increase to around Y2.5 trillion
in value terms, he added.
A month ago, traders said, local institutional investors sold off shares when the Nikkei 225 broke above its monthly average level for
March of 16311. Selling above that level allows institutions to book capital gains for the current fiscal year ending in March 2007. While
the market touched an intraday high of 16329.24 Monday, it soon afterwards dropped below the 16311 level.
The odd man out Monday among the exporters was Sony, which dropped 1.0% to Y4,730 on lingering concerns about the company's
brand image from quality problems. Last Friday, Toshiba and Fujitsu said they would also recall Sony-made lithium-ion batteries
following earlier recall plans by Lenovo and other computer makers.
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22. Hong Kong shares may start higher, trim February losses
572 words
28 February 2013
01:12 GMT
Reuters News
LBA
English
(c) 2013 Reuters Limited
HONG KONG, Feb 28 (Reuters) - Hong Kong shares may start higher on Thursday, trimming steep losses so far
this this month, after U.S. Federal Reserve Chairman Ben Bernanke reaffirmed his commitment to strong stimulus.
Bernanke, facing a congressional panel for a second day, also downplayed signs of internal divisions, saying the
policy of quantitative easing has the support of a "significant majority" of top central bank officials.
Sun Hung Kai Properties and Citic Pacific are among companies expected to post corporate earnings later in the
day.
On Wednesday, the Hang Seng Index edged up 0.3 percent to 22,577. The China Enterprises Index of the top
Chinese listings in Hong Kong climbed 0.4 percent.
The benchmarks are down 4.9 and 8.1 percent respectively so far this month, the worst performance for both indices
since May 2012.
Elsewhere in Asia, Japan's Nikkei was up 2 percent, while South Korea's KOSPI was up 1.1 percent at 0100 GMT.
FACTORS TO WATCH:
* Brazilian mining company Vale SA expects moderate growth in the Chinese steel market in 2013, a situation that
should keep average prices close to current levels, a company executive said. Vale posted its first net loss in 10
years in the fourth quarter after taking $5.66 billion in charges for underperforming mines and other mills, a loss twice
as big as expected.
* China Vanke Co Ltd, the country's biggest real estate developer, is looking to extend its foreign investment drive
beyond the high-end U.S. market, as Beijing weighs new measures to cool mainland property prices.
* Macau casino SJM Holdings Ltd, controlled by the family of billionaire tycoon Stanley Ho, posted a 27 percent
increase in net profit for 2012.
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