Archive for March, 2013

“Winning is habit. Unfortunately, so is losing”

A cracking quote by the legend Vince Lombardi.Read this today and went , here here

Winning is habit. Unfortunately, so is losing.

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Global stocks remain flat on euro zone crisis

Global stocks remain flat on euro zone crisis.

Today European shares and the euro remained flat, losing early gains as investors fretted that Cyprus’s raid on bank deposits could become the template for future euro zone bailouts.

Banks in Cyprus remain closed following the country’s bailout agreement at the weekend, but comments from Jeroen Dijsselbloem, the new head of the Eurogroup of euro zone finance ministers, have stripped investors of the appetite for the kind of rebound that has followed other rescue deals.

The FTSE All-World is up 0.2% at 236.0, not far from the four-and-a-half-year high of 238.6 hit a couple of weeks ago.

Wall Street’s S&P 500 index is up 7 points to 1,559 at the opening bell, supported by data showing US house prices in January saw their biggest annual increase in six-and-a-half years.

On Monday the S&P traded just 1 point shy of the 1,565 level that was the previous closing high in 2007, before Jeroen Dijsselbloem triggered widespread “risk asset” selling by saying that the Cypriot rescue marked a watershed in how the region deals with failing banks.

But markets have now stabilised as traders absorb Mr Dijsselbloem’s attempts to clarify his initial comments, saying Cyprus was indeed a “specific case”, with “exceptional challenges”.

People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily.”

“People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily.”

Zig Ziglar

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Cyprus Bailout confirmed ! €10 billion 60% of GDP .

Eurozone ministers have agreed a deal on a €10bn bailout,

What i have seen and heard suggest the deal will include a levy on deposits of more than €100,000 in Cyprus’s two biggest banks.

Levi could be up to 40% !!!! For one of the banks, and also they could be split into a good and bad bank

What’s been said is that accounts under €100,000 will have no levi on them , but any above could have a Levi over up to 40% , this looks like a huge bitter pill for those account holders.

Also Cyprus has now have capital restrictions, so we have 2 systems in the Eurozones at the moment !!

One key element of the deposit tax, demanded by the IMF, is that it not require a parliamentary vote.

This is a $22billion economy Cyprus according to the United Nations they are the96th largest economy in the world and third smallest economy in the EU .

Jim O’Neill Chairman,Goldman Sachs Asset Management is fond saying :

China (at least in 2011) was creating the equivalent of another Greece every 12½ weeks. China creates another Cyprus every week.

So since the Banks in Cyprus has been closed China has created the equivalent of the GDP in growth!!

Tony Evans

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A cracking quote for Monday :”The problem is not the problem. The problem is your attitude about the problem. Do you understand?”

What a glorious and amazing Monday ,what a great start tian amazing week.

Saw this on the weekend and went how true is that ,

The problem is not the problem. The problem is your attitude about the problem. Do you understand?

Captain Jack Sparrow

No such things as problems just solutions that’s a little bit harder to see.

Lets lock and load.

T

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Re Blogging #nigeljgreen -UK should prepare for wealth exodus after next election

I am re blogging The below from Nigel Green site as its a great article on the effect of politics on the economy

Link to Nigel Green Blog with the below article

Wealthy Britons and UK-based foreigners are likely to flee Britain and take their funds with them after the next general election as high tax Britain is set to become even higher tax Britain.

Higher tax Britain? Really? Yes, it seems so.

A leading think tank has warned that tax hikes of up to £9bn, which equates to 2p on the basic rate of income tax, are likely to be imposed after the next election to plug the huge hole that will be left in the government’s finances following the spending cuts scheduled for 2015 that were announced in George Osborne budget.

The astute number crunchers at the Institute for Fiscal Studies have shown that the government will have little alternative but to borrow more or increase taxes to pay for the Chancellor’s budget. As this is after an election, a time when MPs can more afford to take unpopular measures, it is highly probable that the newgovernment would opt for the former – taxes would be hiked up.

As such, Wednesday’s budget represents a little bit of pain today for a whole lot more tomorrow.

A tax hike could be the tipping point for many high-net-worth and ultra-high-net-worth individuals, who are the most mobile in society due to their abundant resources.

As so-called ‘high tax Britain’ is set to become ‘even higher tax Britain’, I would fully expect there to be something of a wealth exodus from the UK as wealthyBrits and non-domiciled taxpayers in the UK seek to move themselves and assets to lower-tax jurisdictions in order to safeguard their funds.

Whilst proponents of tax hikes try to dismiss any notion of a global phenomenon of tax migration, both current examples and history prove just the opposite. It’s clear: when high-net-worth individuals are taxed to perceived excessive levels, they simply move – because they can. They are, in effect, taxed out.

Clearly, such capital flight would be detrimental to the UK. HM Revenue and Customs estimate that Britain’s top 275,000 earners contributed more than £41.4bn in tax over the last financial year, which equals 25.7 per cent of the UK’s total income tax bill. This is revenue the country simply cannot afford to lose.

If the UK is serious about boosting its coffers, it should be becoming more tax competitive, to attract high-net-worth individuals and job-creating firms, not less. Indeed, as David Cameron has previously said, the red-carpet should be rolled out for them.

Nigel Green

blog written 23rd March

Nothing great was ever achieved without enthusiasm

Superb quote ,

“Nothing great was ever achieved without enthusiasm.”

Ralph Waldo Emerson

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Some succeed because they are destined to, but most succeed because they are determined to.

A inspirational quote I saw today and had to share.

Some succeed because they are destined to, but most succeed because they are determined to.

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Japanese Economy Gives Investors A Yen For Risk

A great article on iExpats on the JPY and how Abenomics is changing Japanese mentally and the world attitude to risk in Japan .

A very good read.

Japanese Economy Gives Investors A Yen For Risk
By Lisa Smith March 22, 2013

A number of different factors have joined together to encourage investors to ditch safe assets and head for riskier investments.

Many professional investors are heading towards Japanese equities because of the country’s weak yen which helps boost exports and increasing confidence among Japanese companies.

Others are ditching Australian bonds and reducing their gold holdings.
The downward slide of the UK pound is also making British equities more attractive, particularly in those firms which trade in dollars or export in volume.
To underline this move, one major player, Baring Multi Asset Fund, has increased its equity exposure in Japan from zero at the end of last year to a current standing of 4% – and they are looking to invest more.

Flagging economy

Fund manager Andrew Cole said that the Japanese government’s manipulating of the yen was helping to boost the flagging economy and, as a result, the recovery in Japanese equities was sustainable.

He added: “The measures taken by the Bank of Japan appear to be more credible than anything we have seen in the past and, as such, we believe Japanese equities are set to provide good opportunities for investors.”

Mr Cole says gold exposure has been reduced and will need an unorthodox fiscal intervention in the US for the price to keep rising.

The fund is also slashing the proportion of assets which are hedged in Sterling from 79% last autumn to 68% in the first quarter of this year.

They are also selling Australian bonds as government debt in safe havens comes under pressure and investors move to riskier profiles against what is seen as an expensive asset class.

The outlook of Barings is underlined by a Credit Suisse report which highlights two reasons as to why investors are adopting a riskier stance for their investments.

Stops and starts

The first, they say, is that economic growth in the US will pick up this year and lead the global recovery and, secondly, that the world’s central banks will raise interest rates this year as they leave their stimulus measures behind them.

However, they warn that the markets will fluctuate dependent on economic data being published but that the swings will be pauses rather than peaks and troughs and that the markets will continue their upturn.

Economists at Credit Suisse are predicting an up-coming slowdown in the world economy but this will not be followed by a sharp decline in growth and that the market’s mood of optimism could be undermined leading to short term falls.

The firm also points to the Japanese economy enjoying a strong rebound this year with better growth figures for both China and Europe.

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J.P. Morgan Asset Management launches JPM Fusion Fund range through deVere Group

J.P. Morgan Asset Management launches JPM Fusion Fund range through deVere Group.

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