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How Currencies Impact Earnings
It’s earnings season. And more and more companies are talking about currencies.
The headlines read like this …
“Alliance Data 2Q Profit Down 37 Percent, Hurt By Currency Headwinds”
“McDonald’s Profit Narrows By 8 Percent On Currency Exchange Impact”
“Pepsi 2Q Down 2 Percent On Currency, North American Pressures”
“Omnicom Profit Plummets As Economy, Currency Do Damage”
It’s important to realize the role that currencies play in the performance of multi-national businesses. The impact can be huge. However, the attention given to managing such a powerful force is, in many cases, shockingly little.
S&P 500 companies derive nearly half of their sales from outside the U.S.…
28Jul2009 | Money and Markets | 0 comments | ContinuedThis Major World Currency Is About to Plummet
“I had no place to stay and I wanted the police to take care of me,” said the 79-year-old Japanese woman. She had just slashed two people with a knife so the police would take her to jail.
A “gray” crime wave is sweeping Japan. According to the UK’s Independent, people over 65 years old make up 10% of Japan’s prison population, the highest rate of incarceration for pensioners in the industrialized world. Another source reported Japanese pensioners were responsible for one in seven arrests last year, up from one in 25 a decade ago.
The surge in “senior crime” is so…
18Mar2009 | Stansberry and Associates | 0 comments | ContinuedLooking At Economic Failure
"A massive paradigm shift away from everything we have known for all our lives to something we have read about in history books, with numerous twists; history never repeats itself but many times rhymes. As we have watched the credit crisis unfold over the last 2 years most peoples’ lives have been largely unaffected as residual momentum and habits built up over decades haves crested and reversed, but now the slippery slope downward is set to accelerate VISCIOSLY." -Ty Andros
Mr. Andros has been spot on both leading up to and during the current financial crisis. He is one of the…
20Jan2009 | Oxbury Research | 0 comments | ContinuedA New, Slicker Currency
The Holy Book tells us that there is a time to every purpose under heaven. Or was that the Byrds? In any event, these times have done an outstanding job of confounding all the investment world’s beastly inhabitants, bull and bear alike. Just where the markets are headed a day or two from now is anybody’s guess.
The only clear item to emerge from this last week’s trade is a decided shift in sentiment toward the pessimistic. Yet whether this shift has been large enough to be used by contrarians appears doubtful. There’s not enough genuine fear, in our view, to…
20Jan2009 | Oxbury Research | 0 comments | ContinuedFX MARKETS QUIET AHEAD OF THE CHRISTMAS
The dollar was stronger against most of the G10 on light trading volume, which is typical prior to a major holiday. The EurUsd rose 30pips to the mid 1.39 level, while the UsdJpy picked up 10pips to the low 90 price area. The GbpUsd dropped 95pips to low range of 1.48, probably due in part mostly to heightened volatility. Bond yields gave up little ground in terms of prices, as treasury yields remain extremely tight. Eurobond yields dropped across the board, with the French and German 10yr down 7bps. Equity markets closed lower in the US, with the Dow down…
22Dec2008 | Advanced Currency Markets | 0 comments | ContinuedUS SESSION: FX PRICES DEVIATE FROM RISK AVERSION TRADE, GOLD AN OIL RALLY STRONG
The dollar fell to its lowest levels in seven weeks against the majors displacing the recent trend trading across the financial markets. The EurUsd rose over 300 pips to the low 1.33 price area, while the UsdJpy fell 137pips to the mid range of 91. The GbpUsd gained 245pips to the low 1.50 level, marking the decoupling of the risk aversion trade which has been a consistent theme in the market over the last several weeks. Equity markets performed poorly with the Dow sliding 2.24% or 196pts on weak economic data and delays with the auto sector bailout. Bond yields…
12Dec2008 | Advanced Currency Markets | 0 comments | ContinuedBailout World update
Canada cuts rates by 3/4 percent
The Bank of Canada has dramatically cut its key interest rate by a hefty three-quarters of a percentage point, blaming a “broader and deeper” global slowdown for driving Canada into recession.
The central bank’s overnight lending rate now stands at 1.50 per cent, a generational low and the likes of which have not been seen since the 1950s.
In response, however, Canada’s major banks cut their prime lending rates by only half a percentage point, to 3.5 per cent, rather than following with a full three-quarters of a point reduction.
Canada’s central bank joins a host of other central…
10Dec2008 | The Real Deal | 0 comments | ContinuedEQUITIES LOOKING AT A NEGATIVE SESSION AS TRADERS SCALE BACK RISK AHEAD OF RATE CUTS
The Dollar and yen hold their stature as safe haven currencies, as investors brace themselves for a selloff in the US trading session. The EurUsd fell 85 pips to the low range of 1.26, while the UsdJpy dropped 140pips finding support near 94. The GbpUsd collapsed 400pips pushing the pair through 1.50 currently trading with a 1.49 handle. Equities in the US declined with the Dow down 360pts or 4.0% and the S&P500 off 30pts or 3.6%. The US followed the trend of the European stock indexes which are also in the red, both the FTSE and the DAX down…
1Dec2008 | Advanced Currency Markets | 0 comments | ContinuedUS SESSION: CALM BEFORE THE STORM, CENTRAL BANKS ARE SET TO MEET NEXT WEEK
Dollar strength carried into Black Friday, seeing strong against the majors. The EurUsd fell a bit over 200pips to the low 1.27 level, while the UsdJpy rose 30 pips to the mid 95 price area. The GbpUsd slipped 90 pips to the low range of 1.53, on a light trading day. Equities are mostly flat following the US holiday, traditionally a low volume session. Bond yields remain compressed with the 2yr at 1.1% and 10yr at 2.9%, we should look for more activity next week considering monetary policy decisions out among the G7. Commodities declined across the board with oil…
28Nov2008 | Advanced Currency Markets | 0 comments | ContinuedUS SESSION: SELLERS CONTINUE TO DRIVE MARKETS SOUTH JPY STRENGTHENS
The dollar seems to be breaking away from the risk aversion trade which has been the persistent theme in the marketplace. The EurUsd rose nearly 130 pips to the low range of 1.26, while the UsdJpy moved 50 pips to the downside trading at the mid 96 price area. The GbpUsd rallied over 300pips to the low 1.50 level, recovering some of last week’s losses. Equity markets opened lower in the US with the Dow down 1.2% or 100pts, the European stock indexes are negative as well with the DAX off 2.1% or 100pts in intraday trading. Bond yields are…
17Nov2008 | Advanced Currency Markets | Comments Off | Continued
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