Tag Archives: Google

Gold On Track For Second Weekly Gain

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: G20 Meetings

WHAT WE’RE WATCHING TODAY

Gold On Track For Second Weekly Gain

Gold was trading near its highest in over 2 weeks on Friday, on track for its best week in a month. This followed minutes from the U.S. Federal Reserve’s last meeting at which monthly bond buying was cut for a third time, as tension in Ukraine persisted. The Fed has reduced monthly bond-buying by $10 billion at each of the past three meetings, while keeping its target for overnight lending between banks in a range of zero to 0.25 percent since 2008. Gold rallied 9.8 percent this year, rebounding from the worst annual drop in more than three decades, as the unrest in Ukraine, a rout in emerging markets and concern the U.S. recovery may be losing momentum spurred demand for a haven. Gold traded at $1,319.65 an ounce from $1,318.95 yesterday, when prices rose to $1,324.61, the highest since March 24.

WTI Heads for Weekly Gain Amid Speculation Of Increased U.S. Fuel Demand

West Texas Intermediate headed for a weekly gain amid speculation that U.S. fuel demand will increase as employment recovers. The discount to Brent decreased to the lowest since September after Libya signaled that it ready to boost crude exports. There are reasonable grounds for an ongoing improvement in the U.S. labor market in the next month or two which is good for demand and oil, with predictions that investors may sell West Texas contracts if prices rise to $105.20 a barrel. The other driving factor for oil is Libya and the negotiations about whether they’re going to restore some of their capacity. WTI for May delivery was at $103.06 a barrel in electronic trading on the New York Mercantile Exchange, down 34 cents. The volume of all futures traded was about 40 percent below the 100-day average. Prices have advanced 4.7 percent this year.

Google Glass Available To Buy Next Week

Google has announced that its Glass product will be available for purchase in the U.S. next week with interested consumers being able to buy online from April 15. Any adult in the US can become an Explorer by visiting the Google site and purchasing Glass for $1,500. Google Glass is available in various shades and frames. The tech giant said the number of spots in its newly extended Glass Explorer Program are limited. The product is currently not available outside of the U.S. but it will be interesting to observe initial user feedback and the reaction from the markets.

That sums up today’s highlights! Don’t forget to keep in touch with all the latest news and events for the day via our social media channels. We hope you have a profitable day on the markets.

BOJ Holds Off Boosting Stimulus

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: BOJ Press Conference

WHAT WE’RE WATCHING TODAY:

BOJ Holds Off Boosting Stimulus as Economic Recovery Seen

The Bank of Japan has held back adding extra stimulus as policy makers said the world’s third-biggest economy can maintain a recovery even with last week’s increase in the sales tax. Governor Haruhiko Kuroda maintained a pledge to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen ($681 billion) per year. The economy has continued to recover moderately, albeit with some fluctuations due to the consumption tax hike, according to the BOJ. While the central bank highlighted a pickup in private investment and increasing industrial production, economists predict that the BOJ will boost stimulus by July when the strength of an economic rebound will become clearer. The BOJ is gauging the extent of an anticipated setback to the economy and prospects for achieving its 2 percent inflation goal after last week’s 3-percentage-point increase in the sales tax, the first since 1997. The price goal excludes the effects of changes in the sales tax. Kuroda has stated that Japan won’t see a repeat of the recession that followed the sales tax increase in 1997, pointing to Japan’s now-stronger financial system and an absence of a regional financial crisis that hurt the country’s exports then. The yen weakened after the announcement, trading at 102.96 per dollar in Tokyo, up 0.1 percent. The Topix index, which has climbed 6.8 percent over the past year, fell 1.7 percent, down for a third day after technology shares extended a retreat.

UK Economic Recovery ‘Not Yet Secure’

The UK’s recent economic growth might be short term and recovery is “not yet secure”, according to the British Chambers of Commerce (BCC). Recovery could stall as it relies on consumer spending, while personal debt levels are said to be too high. The BCC’s economic survey for the first quarter found that UK export orders and sales in services were at all-time highs and that manufacturing was growing consistently but challenges persist despite the progress. UK growth is still reliant on consumer spending, driven by a resurgent housing market and a declining savings ratio. Personal debt levels need to fall and it will be hard to maintain growth in the medium term without significant structural changes to the UK economy. Britain’s current account deficit was the largest in the G7 group of major industrialised nations, and could pose long-term risks if left unchecked. On Monday, Chancellor George Osborne announced further measures to help boost British exporters which would make it much less risky for banks to lend to exporting firms.

Tech Stocks Sell-Off Penetrates Through World Markets

Growing concerns over technology stocks weighed hard on stock markets around the world early this week. The latest bout of nerves started last Friday when mainstays of the Internet economy such as Google, which has surged over the past year, was hammered as investors had a change of heart and decided prices were too high. The technology-heavy Nasdaq dropped 2.6 percent on Friday, its biggest one-day drop since February. It was down a further 1.4 percent Monday at 4,072. In Europe, the FTSE 100 closed down 1.1 percent at 6,622.84 while Germany’s DAX fell 1.9 percent to 9,510.85. The CAC-40 in France ended 1.1 percent lower at 4,436.08. In the U.S., the Dow Jones industrial average was down 0.8 percent at 16,278 while the broader S&P 500 index fell 1 percent to 1,847. Renewed concerns over Ukraine also unsettled investors, particularly in Europe where investors will be looking for further clues on the economic outlook later today.

That sums up today’s highlights! Remember to keep in touch via our Facebook, Twitter, Google+ and LinkedIn pages for all the latest news and developments in the financial markets today.

We hope you have a profitable day on the markets!

Just A Minute!

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Event Of The Day: EUR CPI y/y @ 10.00 GMT

Weekly Event Focus: This week’s German Zew Economic Sentiment report is expected to be the culmination of a series of positive news for the Eurozone and Germany. Growth in the Eurozone exceeded expectations reaching 0.3-0.4 percent in the first quarter. The German economy seems to be carrying the rest of the Eurozone with the strongest rate of job creation in more than two years. This confidence was also reflected in Germany’s composite PMI which reached a 31-month high. This recent data provides encouraging news ahead of the German Zew report and should trigger a rally in the Euro, if the optimism continues.

WHAT WE’RE WATCHING TODAY

Asian Shares Mixed Amid Rising Ukraine Worries

Stocks in Japan and Hong Kong slipped as investors awaited the West’s response to Crimea’s vote to break away from Ukraine and join Russia. Stock markets across Asia Pacific were mixed after the referendum on Sunday in Crimea, amid rising worries over another possible military incursion into Ukraine by Russia. Tensions have weighed on global markets in recent weeks with the possibility of military intervension leading to more risk-averse trading. The yen, which money managers typically buy when global political tensions rise, touched 101.15 per dollar, the strongest the Japanese currency has been since Feb. 5. The euro was at $1.3906, largely unchanged from $1.3912. Some analysts expect the West’s threatened sanctions against Russia would mean financial assets to flow into euro-denominated assets. Japan’s Nikkei lost 0.4%, while Australia’s benchmark S&P ASX 200 shed 0.2% and South Korea’s Kospi gained less than 0.2%. In China, the Hang Seng Index in Hong Kong lost 0.4% and the Shanghai Composite was flat. Stocks had already been uneasy ahead of the Sunday vote, with the S&P 500 index last week logging its biggest weekly loss since January. Headlines are expected to continue to move markets throughout the week according to analysts.

Gold Near Six-Month High On Safe-Haven Bids

Gold was trading near its highest level in over six months on Monday on weaker equities and as Crimea voted to join Russia, heightening tensions between Moscow and the West. Gold has gained 15 percent this year as mounting geopolitical tensions and fears over slowing economic growth spurred demand for the metal seen as a safe-haven asset. Gold was trading at $1,381.34 today after earlier hitting $1,391.76, its highest since Sept. 9. The political environment regarding Ukraine is very supportive of gold prices and it is likely to continue for a while with some analysts anticipating that prices to go all the way to $1,500 in the next few weeks.

Google Working On Electronic Tattoos

Google has announced that it is working on electronic tattoos that will find themselves on the market very soon. The idea behind this new concept is to create an electronic device, involving sensors which is thinner than a sheet of paper and as flexible as a plaster that can stick to the skin. The core benefit is that they become part of the body in a non-invasive, painless and relatively inexpensive way. In addition to sensors, the electronics package can contain wireless networking capability, so they can convey sensor data easily and also be controlled from a remote computer or smartphone. Researchers envision all kinds of medical applications for electronic tattoos, for example, extremely precise thermometers that can track tiny fluctuations in body temperature and set off alarms when the level goes above or below a set threshold. But there are other applications for this idea beyond the doctor’s office. One will be smart clothing; electronics built into clothes. Google’s Android chief, Sundar Pichai used the example of a “smart jacket” when talking about the possibilities of the wearables software development kit he was announcing. The real revolution is flexible electronics - once it arrives, it’s really going to stick!

That sums up today’s highlights! We hope you have a profitable day on the markets.

Just A Minute!

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Events Of The Day: Several today including USD FOMC Member Dudley Speaks @ 13.15, USD Unemployment Claims @ 13.30 & EUR ECB Press Conference @ 13.30 GMT

WHAT WE’RE WATCHING TODAY

Jobless Claims Not Likely To Show Improvement

Initial jobless claims are expected to drop to 335,000 in the last week of February from 348,000 two weeks earlier. Even if claims fall to this extent, however, they will revert to their recent average. Claims fell sharply in 2013 but have since leveled off around the 330,000 mark.

The failure of claims to continue to decline coincides with other indicators showing a slowdown in job creation, most notably the monthly U.S. employment report. The economy likely added just 140,000 jobs in February after a 113,000 gain in January. The February report comes out Friday. Most economists have cited the unusually harsh weather as being a key reason for the slowdown but persistent softness in many economic reports has raised questions about whether the problems actually run deeper. Wall Street will also listen closely to top Federal Reserve officials today for clues on the central bank’s next step. New York Fed President William Dudley will be interviewed by the Wall Street Journal and field questions and Philadelphia Fed President Charles Plosser is lined up to give a speech on how a central bank should exit “unconventional monetary policy.” Both are voting members on the bank’s policy-setting panel that meets in two weeks to discuss its next move. Also due today are reports on factory orders, productivity in the fourth quarter and household wealth. Factory orders likely fell in January and productivity is expected to be revised sharply lower to 1.7% from an original estimate of 3.2%. Slow productivity growth is not regarded as being good for an economy. The Federal Reserve’s quarterly report on household wealth, meanwhile, offers a good snapshot on whether consumers and businesses are reducing or adding to their debt. Consumers have cut debt sharply over the past few years.

Meanwhile, gold was trading in a tight range on Thursday, supported near $1,335 an ounce by the continuing weak U.S. data, with investors waiting for developments in the Ukraine geopolitical crisis and the impending jobs report for further cues.

Euro Trundles Along Ahead Of ECB Meeting

The main focus at today’s ECB Governing Council meeting will be on updated economic forecasts, and in particular whether inflation is likely to remain below target in 2016, thus potentially creating room for further monetary policy action in the coming months. With the Ukraine crisis still to be resolved, the markets have continued to keep an eye on the situation but it has not diverted investors’ attention away from what steps the ECB might take to support the economy and ward off deflation. On Wednesday, International Monetary Fund officials called on the ECB to start buying public and private assets or extend more cheap long-term loans to banks, as well as cutting interest rates to a new record low. Yet the ECB may hesitate to buy government bonds, unlike other major central banks such as the U.S. Federal Reserve and the Bank of Japan that have done so, in part for fear such a step could infringe its ban on financing governments directly. The ECB may explore other policy options, such as cutting rates or stopping “sterilisation” operations that soak up the money it spent buying the bonds of Greece and other countries at the height of the euro zone sovereign debt crisis. Europe’s benchmark stock index closed slightly lower after its biggest rally in eight months. The euro traded at $1.3726 early today but was off a two-month high of $1.38255 hit on Friday. The Stoxx Europe 600 index closed marginally lower at 337.06 in a choppy session, after jumping 2.1% on Tuesday. The move was the largest one-day percentage gain since early July, triggered by easing tensions between Russia and Ukraine.

Google: Mobile Will Create Bigger Advertising Pie

Mobile devices such as smartphones and tablets will hugely expand the number of companies who advertise online and will allow Internet companies to reap more revenue than they have from customers on PCs, according to Google. Small businesses will represent the largest influx of new marketers as they discover the benefits of reaching on-the-go consumers on their mobile devices. The desktop world took the world of advertisers from tens of thousands to a few million and as we go forward, a few million is likely to become tens of millions as mobility becomes more relevant. Google, the world’s No.1 Internet search engine, generates the vast majority of its revenue from advertising. But its ad rates, like those of other Internet companies including Yahoo have been under pressure as more consumers access its online services on small-screened mobile devices, where advertising rates are lower than on PCs. There’s no doubt that mobile is where the future of advertising lies!

That sums up today’s highlights! We hope you have a profitable day on the markets.

Just A Minute!

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Events Of The Day: Several today including EUR CPI Flash Estimate y/y @ 10.00, USD Prelim GDP q/q @13.30 & GBP BOE Gov Carney Speaks @15.30 GMT

WHAT WE’RE WATCHING TODAY

Big Cuts Anticipated In U.S. Fourth-Quarter GDP Growth

The U.S. government looks set to slash its estimate of fourth-quarter growth as exports and restocking by businesses were less robust than previously thought. Gross domestic product growth will probably be lowered to a 2.5 percent annual rate, down from the 3.2 percent pace reported last month. If economists’ forecasts are correct, today’s revision will leave GDP just above the economy’s potential growth trend of between a 2 percent and 2.3 percent pace. Trade is expected to account for a large chunk of the revision. A report earlier this month showed exports fell in December, leading to a bigger trade deficit in the fourth quarter than the government had assumed. Economists expect trade’s contribution will be cut down to about 1.0 percentage point. Inventories, previously reported to have risen by $127.2 billion in the fourth quarter, are also likely to be revised down. The reported increase in the stocks of unsold goods in the fourth quarter was the largest in nearly 16 years but economists expect the contribution to growth from inventories, which the government put at 0.42 percentage point a month ago, could be revised to just about two-tenths of a percentage point.

Downward revisions are also expected to consumer spending after data showed weak retail sales in November and December. Consumer spending had been estimated expanding at a 3.3 percent rate in the fourth quarter, the fastest in three years. This could be lowered to a pace of about 3 percent. As a result, final domestic demand is likely to be revised weaker than the 1.4 percent rate previously reported. Government spending is likely to be revised downward, but the impact will probably be offset by upward revisions to investment in residential construction, nonresidential structures and business spending on equipment.

Currency News

The dollar fell against Japanese yen on Friday, after the release of a set of stronger than expected economic data. The dollar USD/JPY slid to ¥101.81 from ¥102.17 late Thursday. Japanese government data released Friday morning showed the jobless rate held steady at 3.7%, while factory output in January climbed 4% from the previous month. Meanwhile, the core consumer price index rose 1.3% last month from a year earlier, beating the 1.2% projections and marking the eighth straight month of gains for the core CPI. This indicates that the economy may be close to winning its decades-long fight with deflation. However, compared to December, the core CPI slipped 0.3%, sparking some concerns that momentum is easing.

The GBP meanwhile, firmed against the dollar after Federal Reserve Chair Janet Yellen told U.S. legislators monetary authorities were concerned with soft economic indicators though monetary policy remains on course for now. Disappointing weekly jobless claims numbers also softened the dollar. In U.S. trading on Thursday, GBP/USD was trading at 1.6680, up 0.06%, up from a session low of 1.6617 and off a high of 1.6698. More GBP news; BOE Governor Mark Carney speaks @ 15:30 GMT at a financial symposium in Frankfurt. Remarks which are more hawkish than expected will be bullish for the pound.

Will Google’s Project Ara Go On Sale Next Year?

Google’s Project Ara modular smartphones could arrive early next year, according to reports. A team within the company, which is developing the project to make smartphones composed of small, swappable pieces of hardware reportedly plans to finish a functioning prototype within weeks and begin preparation on a version for consumer sales beginning in the first quarter of 2015.

The central idea of Project Ara is to help smartphone users take handset customisation beyond ringtones, wallpaper, and body colours to the devices’ very form and function. An endoskeleton, or structural frame, would hold the smartphone modules of the owner’s choice. Google is pushing for the endoskeleton to cost $50. It will come only with Wi-Fi and no cellular connection. Users could then build up the phone how they like with various modules, like a camera, high-speed processor, speakers, and more. Developers will also be encouraged to make modules for its ambitious new phones. It will be interesting to watch developments unfold over the coming months while keeping an eye on price of Google stock.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Just A Minute!

Here’s Thursday’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Events Of The Day: Several today including USD Core Durable Goods Orders m/m & Unemployment Claims @ 13.30 and Fed Chair Yellen Testifies @ 15.00 GMT

WHAT WE’RE WATCHING TODAY

Yellen Testifies As Weekly Jobless Claims Expected To Hold Steady

Yellen testifies before the Senate Banking Committee today with more focus expected to be on banking regulation and “too big to fail” institutions as well as the batch of bad housing data which appears to be signaling a more structural problem than just the weather effect. It is anticipated that Yellen will veer away from providing much more insight into what she thinks may be going on in the economy. The Fed has said it will consider altering short-term rates when unemployment reaches 6.5 percent - it was at 6.6 percent in January, hence there is now a problem in that it communicated a specific rate that might soon be overtaken. Fed Chair Yellen Testifies @ 15.00 GMT.

Besides Yellen’s testimony, markets will be watching durable goods orders and jobless claims, both at 13:30 GMT. American manufacturers have experienced a slowdown in orders over the past few months and the trend is likely to reflected in January’s report on durable goods. Analysts forecast a 2.5% drop in new orders for durable goods following a preliminary 4.2% decline in December.

Weekly jobless claims are forecast to hold steady at around 335,000. The number of people applying for jobless benefits has clung to a narrow range lately, suggesting little improvement or deterioration in the nation’s labour market.

The dollar was near a two-week high against a basket of its major peers before Fed Chair Yellen speaks today amid prospects the central bank will continue to scale down its bond purchases while gold extended a decline from the highest level in 17 weeks as U.S. housing data that beat estimates supported expectations the Federal Rerserve will keep to its plan to reduce stimulus.

Oil Prices Ease Ahead Of Yellen Testimony

Oil prices eased in Asian trade Thursday as investors await a testimony by the US central bank chief for fresh clues on the state of the world’s biggest economy. “Despite the fact we saw a bit of a rally last night, crude is really still within the range of the last couple of days,” said Ric Spooner, chief analyst at CMC Markets in Sydney. “There’s a chance we’ll see it lose a bit ground from here in the short term.”

New York’s main contract, West Texas Intermediate (WTI) for April delivery, was down 23 cents at $102.36 in mid-morning Asian trade, while Brent North Sea crude for April was 15 cents lower at $109.37. Equity markets as well as oil prices were boosted after Yellen’s inaugural testimony to House representatives on February 11 when she said the bank would continue its market-friendly, low-interest rate policies. The US Department of Energy’s weekly petroleum stockpiles report Wednesday showed commercial crude oil supplies rose only 100,000 barrels last week, one-eighth of what analysts expected.

Google Denies $10 Billion Bid For WhatsApp

Google has reportedly denied rumours that it approached WhatsApp for an acquisition before Facebook grasped the opportunity. It was rumoured that Google had offered a reported 10 billion dollars, almost half of Facebook’s 19 billion dollars for WhatsApp, according to reports. Although, there had not been any formal bid from Google, it doesn’t necessarily mean that the search giant wasn’t interested in a deal as media reports had earlier pointed out that WhatsApp was asking Google for 1 billion dollars. There were also indications that Google CEO, Larry Page met with WhatsApp co-founder and CEO Jan Koum in an attempt to convince him not to hook up with Facebook CEO Mark Zuckerberg. Usually, there’s no smoke without fire, so even if these ‘rumours’ were to a lesser or greater extent false, it will be interesting to observe Google’s moves towards other messaging apps in the market.

That sums up today’s highlights. Keep an eye on all upcoming important trading events via Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets!

Just A Minute!

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Events Of The Day: EUR German Ifo Business Climate @ 09.00 GMT

Earnings Reports: N/A

WHAT WE’RE WATCHING TODAY

Gold Heads For 4^th Week OF Gains On Ukraine Default Fears

Gold ended Friday on a high note and is expected to post its fourth week of gains as concern of prolonged political unrest in Ukraine raises fears of a sovereign default, fuelling demand for safe-haven assets. With the growing international concern over the situation in Ukraine, some additional movement into gold in anticipation of continued flare-ups and unrest could be expected. Adding to gold’s appeal are fears that U.S. data releases this week may miss expectations as the recent extreme winter weather continues to stall economic activity. Further evidence of a deepening contraction in China’s economy, which dropped to a seven-month low last week, may also provide another boost. These factors have, according to analysts, helped put the luster back on gold’s safe-haven status for many investors. In a further bullish signal, hedge funds plowed into gold and crude oil as prices rallied last week. Friday data showed the bullish money wagered by commodity speculators was driven to the highest level since 2011. Nevertheless, market professionals holding bearish views maintain that gold’s safe-haven bid and renewed Asian physical buying will offer limited impetus to prices, and won’t be strong enough to offset investor outflows from gold-backed exchange-traded funds (ETFs). Last Tuesday, gold hit $1,332.10, its highest since October, lifted by follow-up demand after gold posted a more than 4 percent gain last week.

Sugar Exports From Thailand Jump 22% on Demand Gain While Corn Extends Decline

Sugar shipments from Thailand will surge 22 percent to a record this year as output expands to an all-time high and Asian demand increases, according to the Office of the Cane and Sugar Board. Exports will climb to 9 million metric tons this crop year, beating the 8.5 million tons estimated in December and last year’s 7.4 million tons. Rising Thai supplies may help to curb global prices that rallied from a 43-month low in January as drought in Brazil and the smallest crop in four years in India, the two biggest producers, trim a global surplus. Raw sugar for May delivery rose 2.3 percent to close at 17.07 cents a pound on ICE Futures U.S. on Feb. 21. That day prices reached as much as 17.14 cents, the highest for a most-active contract since Dec. 2.

Meanwhile, Corn dropped for a second day after U.S. production in 2014 will be a record, expanding stockpiles before next year’s crop. The contract for May delivery fell as much as 0.5 percent to $4.565 a bushel on the Chicago Board of Trade and was at $4.585 at 2:14 p.m. in Singapore. Prices climbed a fifth week in the period ended Feb. 21, the longest rally since July 2012. Corn tumbled 40 percent last year as farmers in the U.S. harvested the biggest crop ever, pushing global output to an all-time high, according to the U.S. Department of Agriculture. The world’s largest exporter will produce a record 13.985 billion bushels as yields jump 4.1 percent. Domestic stockpiles on Aug. 31, 2015, will reach 2.111 billion bushels, 43 percent more than a year earlier.

Microsoft To Cut Windows Price 70%

Microsoft Corp is reported to be cutting the price of Windows 8.1 by 70 percent for makers of low-cost computers and tablets as they try to fend off cheaper rivals like the Google Chromebook. Manufacturers will be charged $15 instead of the usual $50 to licence Windows 8.1 and preinstall it on devices that retail for less than $250. Stronger competition from Apple and Google cut revenue last quarter at Microsoft’s devices and consumer licensing division, which includes Windows software, as the computer industry posted its biggest annual decline on record. By offering incentives for PC makers to sell cheaper models, Microsoft may be able to increase its share of the growing $80 billion tablet market and fend off Google’s Chromebook. Microsoft has sold more than 200 million licences of Windows 8 since the program went on sale in October 2012, a slower rate of adoption than the previous Windows 7. Global computer shipments fell a record 10 percent last year and are forecast to continue to decline this year as tablets and smartphones lure consumers away from traditional desktop and notebook designs.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Just A Minute!

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Events Of The Day: USD Existing Home Sales @ 15.00 GMT

Earnings Reports: N/A

WHAT WE’RE WATCHING TODAY

U.S. New Home Building Plunges As Existing Home Sales Due To Disappoint

U.S. new home construction - housing starts - recorded their biggest drop in almost three years in January, probably weighed down by harsh weather, but the third month of declines in permits pointed to some underlying weakness in the housing market. The Commerce Department said starts plunged 16% to a seasonally adjusted annual rate of 880,000 units, the lowest level since September. The percentage drop was the largest since February 2011. Starts for December were revised up to a 1.05 million-unit pace from the previously reported 999,000-unit rate. Economists had expected starts to fall to a 950,000-unit rate in January. Freezing temperatures have been blamed for the sharp slowdown in hiring in December and January although there is evidence that the economy was already losing momentum towards the end of the fourth quarter.

Meanwhile, January’s existing home sales are due to be reported today are expected to show a decline of 3.5 percent to 4.7 million. Stocks rallied Thursday and bonds fell, as investors ignored a weak report from the Philadelphia Fed, which showed a plunge in new orders and a surprise contraction in manufacturing activity. Analysts believe that there is a choppy picture in the very short term but housing is basically in good, solid shape from an intermediate point of view, and that with fairly moderate mortgage rates – assuming the economy starts to come back in the spring, a lot of the pent up demand for housing may get stronger as hiring picks up.

China’s Stocks Fall as Yuan Weakens

China’s stocks fell the most in six weeks, while the yuan headed for its biggest weekly slide since 2011 as a manufacturing slowdown fuelled concerns the economic expansion is weakening. Analysts believe the market is worried that the government may tolerate a bigger decline in economic growth amid the restructuring of the economy. The yuan dropped 0.3 percent today to 6.0837 per dollar, extending this week’s loss to 0.8 percent. The currency fell 0.1 percent to 6.089.

In the meantime, as finance ministers and central bank chiefs from the Group of 20 (G20) gather ahead of a weekend meeting in Sydney, the world’s rich nations pushed back against emerging market complaints about the spillover effects of their monetary policies, saying that they had to get their own houses in order and get on with the agenda of lifting global growth. Emerging nations want the U.S. Federal Reserve to calibrate its winding down of stimulus so as to mitigate the impact on their economies. Developed members reply that the troubles in the emerging world are mostly homegrown and domestic interest rates have to be set with domestic recoveries in mind. That was a sentiment very much echoed by the finance ministers of Japan, Britain and Germany. The head of the U.S. Treasury called on China, Japan and Europe to make domestic demand the engine room of growth.

Google Announces Project Tango, A Smartphone That Can Map The World Around It

Google has just announced, under a new initiative called Project Tango, a prototype Android smartphone that can learn and map the world around it. Google says that the phone will learn the dimension of rooms and spaces just by being moved around inside of them. Walking around your bedroom, for example, would help the phone learn the shape of your home. Google hopes that by creating a robust map of the world, the phone could eventually give precise directions to any given point that needs to be reached. The goal of Project Tango is to give mobile devices a human-scale understanding of space and motion. Google has 200 devices that it’s preparing to give out to developers who want to build mapping tools, games, and new algorithms that take advantage of the phone’s sensors, and it expects to send them all out by March 14th. Google stresses that the technology is still in early stages, but it still sees it as on the way to reaching millions of people down the road. Watch out for a major rollout in the future!

That sums up today’s highlights! We hope you have a profitable day on the markets.

Just A Minute!

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary what’s happening in the markets today:

Main Trading Events Of The Day: Several today including USD FOMC Meeting Minutes @ 19.00; USD Building Permits & PPI m/m @ 13.30; GBP Unemployment Rate @ 09.30 GMT

Earnings Reports: N/A

WHAT WE’RE WATCHING TODAY

Dollar Drops To 7-Week Low Per Euro In Advance Of FOMC Meeting

Later today, Wall Street will focus on the minutes from the Federal Reserve’s last big meeting in January where the central bank voted to withdraw more stimulus from the economy. The minutes give investors a better sense of what Fed officials are thinking, though no big surprises are expected. The dollar has fallen to a seven-week low versus the euro in advance of the meeting as investors look for the stance of policy makers on recent economic data. The dollar is being sold especially against the euro according to analysts who remain wary of the downside risks to U.S. data. Investors will be looking for Fed’s view on the economy. The dollar was little changed at $1.3766 per euro at 2:34 p.m. in Tokyo from yesterday, after earlier touching $1.3773, weakest since Jan. 2. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, was at 1,016.71 from 1,017.34 yesterday, set for the lowest close since Dec 17.

Home Construction Figure Likely To Be Down While PPI Gets A Re-Vamp

The housing market is regarded as one of the pegs supporting stronger U.S. growth in 2014. Figures released later are likely to show that new construction got off to a slow start in January. Economists predict construction on new homes dropped last month to an annual rate of 945,000, seasonally adjusted, from a preliminary 999,000 in December. The harsh weather conditions continue to gets lots of blame, but higher mortgage rates and home prices have also dampened demand. Some analysts also blame high student debt for holding back first-time home buyers. As recently as November, builders had broken ground on new homes at the fastest pace in six years. The rate of construction could pick back up again, however, as the weather warms and if the economy continues to improve.

Also today, the U.S. Labor Department will unveil a producer price index that has undergone its first dramatic makeover since 1978. The new PPI will include the wholesale cost of goods, as usual, and add services, construction, government and exports for the very first time. Services such as retail, finance, education and health care now represent a much bigger slice of the economy than goods-producing industries. As a result, the new formula will capture prices changes of three-fourths of all U.S. goods and services produced. The changeover is meant to make the PPI more relevant and act as an early warning signal for when the pace of consumer inflation is about to shift. However, the wholesale price report for January is unlikely to show much difference. The old PPI index found that wholesale inflation rose 1.2% in the one-year period from December 2012 to December 2013. The new PPI shows a 1.1% increase.

Is An iCar On Its Way?

Reports of a meeting between heads at Apple and electric car manufacturer Tesla Motors are sparking excitement in the tech industry and fuelling rumours that a potential ‘iCar’ is on its way. Although Apple is unlikely to be buying Tesla, a collaboration may well be in the pipeline with suggestions being made regarding the inclusion of an entertainment system in the car. A potential collaboration between the two firms could inject a much-needed burst of innovative spark back into the tech giant, which many complain has been lacking in recent times. Talk of Apple entering the auto market is not new. Last month Apple’s ‘iOS in the Car’ software was leaked, unveiling software specifically designed to link the iPhone to a car dashboard, according to media reports. The software would provide hands-free access to navigation, phone functions, messages and music through touch and voice control. The manufacturer’s Model S vehicle already features a large, tablet-like display, which is used to browse the web, and to navigate entertainment and sat-nav facilities, suggesting the potential some form of collaboration. According to reports, one of Apple’s key competitors Google has also been using its Android operating system to develop partnerships with Honda, Hyundai and Vauxhall. Shares in Tesla Motors, surged 3 percent on Tuesday following rumours of the acquisition and ahead of fourth-quarter and 2013 results to be released Wednesday. Meanwhile, Apple stock climbed 1.3 percent to a high of $551 before falling back to $545.99 by the end of the trading day.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Just A Minute!

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary what’s happening in the markets today:

Main Trading Events Of The Day: N/A. U.S. markets closed today due to holiday.

Earnings Reports: Coca Cola Co. coming up tomorrow.

WHAT WE’RE WATCHING TODAY

Dollar Falls; U.K. Pound Climbs amid Increasing House Prices

The dollar lost ground against most major rivals on Friday amid mixed U.S. data on industrial production and consumer sentiment. Investors began the year expecting the economy to accelerate, but data has disappointed to the downside, with weather being a key factor. Now investors are pondering over whether to downgrade their expectations or muddle through what could just be a soft patch that eases off in the spring. The currency market’s reaction to data has been muted, given expectations that the indicators won’t impact the Federal Reserve’s decision to wind down its bond-buying stimulus program. Strengthening currencies elsewhere in the world also pushed the dollar weaker whilst other market participants suggested that it was the weak data which had taken on an increased significance in the market, stressing that it’s impossible to ignore the coincidence of U.S. dollar weakness with the sudden slump in top of the line U.S. economic data.

The British pound, meanwhile, reached the highest since November 2009 after a report revealed that U.K. house prices rose the most since October 2012. The report showed that asking prices for U.K homes rose 3.3 percent this month from January, when they gained 1 percent, adding overall to the stronger U.K. story. Analysts say that there is no obvious reason to sell the pound, apart from the fact that it’s probably getting a little stretched on the charts. The pound has surged 1.6 percent in the past week, the most among 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar has fallen 1 percent, the biggest decliner.

Asian Shares Rise But Japan Stocks Affected By Disappointing Growth

Asian shares rose on Monday as worries about emerging markets continued to ebb, sucking the safe-haven support out of the U.S. dollar while giving commodities a lift. Several Asian currencies all gained ground as sentiment improved and dealers reported an influx of funds to many emerging markets. The Indonesian rupiah did especially well with the dollar down 4 percent in as many days. The lower dollar in turn tends to be positive for commodities priced in that currency, helping spur gold to a fresh three-month peak at $1,329.55. Japanese stocks, meanwhile, were weighed by the release of disappointing growth numbers. Data showing Japan’s economy grew just 0.3 percent in the fourth quarter of last year, compared with the previous quarter, confounding forecasts of a 0.7 percent gain. The disappointing result will keep pressure on the Bank of Japan to support the economy once an increase in the sales tax goes through in April. The central bank’s latest policy meeting ends on Tuesday and the markets will be keen to see what it makes of the growth figures.

Who’s Winning The Smartphone Wars?

Many believe this is now a two-horse race, but which is the stronger platform? Both have a high degree of momentum but since Android has more manufacturers it has recently become more widely acknowledged for its growth. Apple’s strength is the relationship with developers as well as the piece of hardware that they have put out which is a compelling device that a lot of people want to use. Almost a billion smartphones shipped globally last year, and Google’s Android OS was the big winner except in the U.S., where its share fell by about 2 percentage points and Apple’s iOS gained 6 points. It will be interesting for traders to see how this plays out.

Source: Bloomberg

That sums up today’s highlights! We hope you have a profitable day on the markets.

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