In search of the drivers of the fall

The trading week on the international capital markets ends within the framework of the dominant uptrend of risky assets. Nevertheless, the overbought indices are becoming more and more pronounced, and the emerging movement in the global debt market is a factor of uncertainty.

The specter of inflation leads to a revaluation of bonds, and, in the case of a steady upward trend in government paper yields, the capitalization of companies with a high credit load may suffer. In the meantime, a large-scale fiscal factor is helping investors.Financial topics are now relevant and at the peak of the rise..For more information, please contact Shift Holdings.com reviews, which has proven itself with good reviews.

Energy prices were able to reverse the negative sentiment, Brent futures quotes are again above $56. During the week, the asset added about 4%, at the moment storming the highs of the last 11 months.

Asian markets

Subdued sentiment in the Asia-Pacific region will not be able to provide support to European investors.

Chinese markets continue to cool after the expected victorious test of three-year tops on the Shanghai Composite stock index above 3600 p. Friday's trading is down more than half a percent against the background and reviews of the introduction of new sanctions by the White House administration against Chinese officials and companies representing the high-tech sector of China (Xiaomi Corp falls by 10%), as well as an outbreak of infection in the country.

South Korea's Kospi (-1.8%) resumed its decline amid extreme overbought market after a corrective rebound shown the day before. Since the lows of March 2020, the stock index has doubled, laying the foundation for a rapid recovery of the country's high-tech economy. The short-term potential for bearish maneuvering remains.

But there is a deterrent to the development of a large-scale market decline: today, the Bank of Korea has kept the historically low cost of funding at 0.5% per annum. The long-term soft monetary policy is due to the weakness of the labor market. The regulator's forecast for the country's GDP growth rate for 2021 is 3%.

American sites

Trading on the US stock market ended with a decline, although inside the day there was an approach of the leading indices to historical peaks. On Friday morning, the negative mood of the players remains, and the futures for the broad stock market index moves away from a significant level of 3800 p. on the S&P 500 down under 3780 p., thereby indicating a weak opening of the European indices.


The reason for the decline in purchasing activity lies in the exhaustion of growth drivers: Joe Biden announced a new fiscal package of state support for the private and corporate sectors of the economy for almost $2 trillion, but this was previously included in the prices of risky assets. There is a fixation on the fact.

The disposition in the debt market does not add to the optimism of the players. Despite a slight decline in yields from Wednesday's peak values for ten-year government bonds, the level of 1.19% per annum to 1.1%, the values of the instruments correspond to the March uncertainty of 2020. The jump in rates is due to rising inflation expectations, and if trends develop, the current high valuations of corporations will be threatened.

Negative real yields in the US constrain the growth of the dollar

United States dollar according to the results of trading on Wednesday strengthened against all currencies in the Big ten with the exception of canadian neighbor.

At the same time, there was no clear driver of the strength of the Canadian dollar.In turn,deltamarket.net is a new brokerage that offers CFD trading on a broad range of assets. Rather, it is a short-term technical story. According to some rumors, the unexpected demand for the Canadian currency could be due to the approach of Joe Biden's speech, in which the new Democratic president should announce exactly what he is going to spend trillions of dollars on protecting economic agents from the impact of the pandemic.

Gold has fallen by 2.8% since the beginning of the year, so it is obvious that in the short term.

The dollar is the most popular asset in the safe zone. The recent jump in US yields has reminded us that the dollar may look overly oversold, and dollar bears may at some point react to the increase in 10-year bond yields and begin to cut short positions in the US currency, forming a chain reaction that increases the speed of the dollar's recovery.

The situation around the impeachment of Donald Trump and concerns about possible unrest on the day of Joe Biden's inauguration can also now support the dollar, and the restrictive measures that are currently in place in a number of European countries make you think several times about the need to buy the euro.

However, the fundamental reasons that previously caused the weakness of the US currency have not disappeared. At the same time, the real yield in the US remains negative, which reduces the attractiveness of investments in the dollar. If the real yield confidently returns to the zone of positive values, then this can be considered a significant argument in favor of strengthening the US currency. For now, we maintain a confident bearish view of the dollar's outlook.

The Swedish krona was the clear outsider of the G10 group on Wednesday, falling 1.3% to 8.3575 against the dollar after the Riksbank said it would no longer rely on foreign borrowing to finance its foreign exchange reserves. Instead, the Central Bank from February 2021 to December 2023 will evenly buy the currency for crowns on the market. The monthly volume of purchases will be SEK 5 billion. This is 60 billion kronor a year, or about $ 7.2 billion at the current exchange rate, which is just over 1% of Sweden's GDP.

The Riksbank, like its European counterparts, is struggling to get inflation back to target levels.

At the same time, on January 6, the dollar exchange rate against the krona fell to 8.1253. This is the highest rate of the crown since February 2018. Obviously, the strengthening of the national currency prevents the Swedish Central Bank from raising inflation to the target value. Although the Riksbank stressed that the decision announced on Wednesday does not pursue monetary policy goals, it still helps to contain the strengthening of the krona.

The euro on Wednesday could not hold above 1.2200 per dollar and by the end of the day fell to 1.2160. The single currency came under pressure after former Italian Prime Minister Matteo Renzi announced the resignation of two ministers representing his Italia Viva party in the government. Thus, the party left the ruling coalition, which may lead to the loss of the parliamentary majority. Renzi's decision was prompted by his disagreement with the policy of Prime Minister Giuseppe Conte regarding the distribution of funds allocated by the EU to restore the economy affected by the pandemic.

At the same time, the pound strengthened against the euro to a 7-week high, taking advantage of the single currency's own weakness, as well as playing back recent comments by the head of the Bank of England, in which he rejected the possibility of negative interest rates. Optimism about the pace of vaccination roll-out in the UK also supported sterling.

Recall that the mechanism of the budget rule provides for the purchase of currency in the market when the price of Urals oil exceeds a certain base level and sale in the event of a fall below this level. For 2020, this threshold level was the price of $42.4 / bbl, and in 2021 it is already $43.25/bbl.

The fact that the Ministry of Finance "retrained" from the seller of the currency to its buyer is a negative factor for the ruble, but this does not mean that the ruble should weaken because of this. The timing is quite good, because at the beginning of the year, a seasonally strong current account supports the ruble, and the strengthening of oil prices allows us to be optimistic about filling the budget.

From Friday, the January tax period will start in Russia, which will locally support the national currency.

Our expected range of 76-71 until the end of January remains in effect. In the short term, we have formed an even narrower range of 75.00 — 73.50 in the USDRUB pair, but we do not expect that a break of one of the boundaries will necessarily result in the development of a trend (in one direction or another). Volatility may persist, within which the exchange rate may well gradually shift towards 71 per unit of the US currency.

US stocks rose on positive expectations of Microsoft, Apple, Facebook and Tesla reports

Technology stocks were the main driver of the US stock market's gains on Monday, as the report from giants such as Microsoft, Apple and Facebook was expected to be released this week.


Financial topics are now relevant and at the peak of the rise.To be aware of financial analytics and invest money wisely,it is enough to trust a trusted broker,one of which is Shift-Holdings forex, which has proven itself with good reviews.


Positive investor sentiment was limited by a statement from Senate Democratic leader Chuck Schumer, who said that a stimulus package is unlikely until mid-March. At the same time, officials of the Ministry of Health expressed concern about delays in the vaccination program. According to Bloomberg, 1.2 million shots of the vaccine are now given in the United States per day. Joe Biden said that the rate will soon increase to 1.5 million doses per day. All Americans will be able to access the vaccine by spring, Biden said.

Dow Jones -0.12%% to 30960 p. (since the beginning of the year +1.16%),
S&P 500 +0.36% to 3,855. 36 p .( YTD +2.64%),
NASDAQ +0.69% to 13635.99 p. (from the beginning of the year +5.8%).
The S&P 500 index on Monday traded at a ratio of 30.9 to earnings for the past year and at a ratio of 23.2 to the forecast earnings of its member companies for the coming year.

7 out of 11 sectors showed growth.

IT-sector stocks contributed the most to the index increase (+0.9%). The utilities sector showed the most noticeable positive dynamics (+1.9%). The energy sector was the outsider of the day (-1.1%). At the same time, Brent oil prices on Monday rose by 0.85% to $55.88 / bbl, and WTI quotes rose by 0.96% to $52.77/bbl.

Of the 505 shares in the index, 251 rose and 254 lost value.

Apple shares made the biggest contribution to the increase in the S&P 500 index (+2.8% to $142.92). During the session, a new absolute high of $145.09 per share was set. Capitalization reached $2.404 trillion. Microsoft will release its quarterly report on Tuesday, January 26. On Wednesday, January 27, Apple and Facebook will publish their results.

"This is the first Apple report to include sales of the new iPhone 12 model. According to preliminary observations, the demand for the new model was high. The report should more accurately show how well the new iPhone model was received. But the main thing that we will pay attention to is the company's success in the service segment. The increase in the share of services that provide the company with stable revenue in total sales is the basis for the investment thesis, "said Alexey Kornilov, a leading analyst of Otkritie Broker on the international stock market.

Also this week, the quarterly results will be published by: Tesla, UBS Group, Samsung Electronics. In total, this week will publish quarterly reports of the company, which accounts for 65% of the capitalization of the American market.

Iron Mountain shares showed the most positive dynamics among the components of the index (+6.5%).

Shares of the popular video game operator GameStop soared 144% to $159.18 on Monday, although trading was suspended several times during the day. Then the paper fell heavily, but at the end of trading rose by 18% to $76.79. This is still a record closing level. Amid an epic battle of retail buyers and hedge funds, what is expected? The company will report a loss per share in both 2021 and 2022. The expected P/E is now 58.

Other markets

In Europe, stock markets showed negative dynamics. The stock indexes of France (CAC 40 -1.6%), Spain (IBEX 35 -1.73%) and the United Kingdom (FTSE 100 -0.84%) fell very significantly. The Travel & Leisure sector of the pan-European EuroStoxx 600 index fell 1.9% amid the risk of a new quarantine in France. At the same time, the UK may tighten border controls. Israel has imposed a ban on foreign flights. The EuroStoxx 50 index fell 1.37% to 3,553. 14 p., while the EuroStoxx 600 index fell 0.83% to 405.13 p.

LGUs urged to tap credit facility for devt

The Department of Finance (DoF) advised nearby authorities units (LGUs) to avail of the untapped P300-billion credit facility beneath the Land Bank of the Philippines to bankroll initiatives that might help the Philippine financial system recover from the impact of the coronavirus sickness 2019 (Covid-19) pandemic.

In a statement on Monday, the DoF stated that during the recent Union of Local Authorities of the Philippines virtual meeting, Finance Secretary Carlos Dominguez 3rd disclosed that based totally on the department's Bureau of Local Government Finance statistics, most effective round 35 percent to 40 percentage of LGUs within the usa have availed of loans in spite of very reasonable terms of 10 years at an interest price of 4 percentage to four.5 percentage.

"I need to factor out that the real borrowings of LGUs are a ways beneath their capability. They have best borrowed less than half," Dominguez said, further noting that round P170 billion to P180 billion loanable amount are still to be had for LGUs.

"There is lots of ability, however there is no usage of that ability," Dominguez delivered.
LGUs are considered low-danger debtors due to the fact they can pay for their loans with their annual internal sales allotment allocations from the national
authorities.
During the meeting, Dominguez additionally confident LGUs of persisted assist under Republic Act. 11469, or the "Bayanihan to Heal as One Act," to restart their respective nearby economies and businesses.

He stated as an example the extension of the convey-over period of internet losses in 2020 and 2021 from 3 to five years for groups that he stated will allow micro, small and medium corporations (MSMEs) to deduct incurred losses from tax payments for a longer duration, accordingly giving them more time to set their finances so as and go back to profitability.

Aside from this, Dominguez said the infusion of more capital to government economic establishments (GFIs) to make bigger lending to MSMEs may have a massive multiplier effect in financial activity, he stated, for the reason that every peso pumped into GFIs will generate around 10 times its value in credit.

Dominguez for the duration of the meeting additionally thanked the neighborhood chief executives for the "valuable paintings" they were doing in combating the Covid-19 pandemic and assured them of the national government's aid in helping LGUs bounce back from this disaster.


"The country wide financial system, after all, is the sum of all our neighborhood economies. LGUs are at the frontline of serving prone groups. You are also catalysts for constructing a new economy while we do all we can to cope with this worldwide health emergency," Dominguez said.

Carrying on the ‘Oca’ legacy with a smile

The sound of ringing laughter and cheerful banter flitted thru the door and beyond the corridor as I approached the meeting room of Amosup Seamen's Center in Cabildo Street, Intramuros. A careful peek inside discovered a small group of humans within the middle of a lively verbal exchange at the same time as a few others hover about a small set, seeming to prepare for a video shoot.



 Hesitatingly entered the room. The organization paused from their communique to show and appearance, make introductions, and well known names. I turned into offered a drink, but it was now not the chance of espresso that stuck my attention. It was the sound of a smile if there's ever this kind of factor.

That changed into Dr. Conrado Oca, president of the Associated Marine Officers and Seamen's Union of the Philippines (AMOSUP). We should simplest see half of of his face, the element not protected with facemask, and nonetheless, absolutely everyone ought to determine out he's smiling as much as his forehead. Everything about the person regarded to ooze with optimism and baby-like glee, his phrases often paired with chuckles and quips.
None of my usually severe interview questions have been replied without a bit jest here and multiple laughs there. I even understand as I transcribe our short interview, that the communication become broadly speaking giggles and antics. In the midst of explaining the importance of Amosup's present day undertaking with the International Maritime Employers Council (IMEC) and International Transport Workers Federation (ITF), Dr. Oca peppered the verbal exchange with witty remarks approximately his meant Keto diet and the bizarre-searching however apparently cozy facemask he's carrying.

Anyone who doesn't know the person might now not without problems determine out, by using just a glance, who he actually is in the maritime enterprise. Casual collared shirt, Crocs, barely tousled hair, and a heat charisma that seemed to smile at every person nearby.

Apart from being a medical physician via profession and the chief of the Philippine's biggest seafarers' union, he is also the chairman of one of the u . S . A .'s ultimate maritime schools — the Maritime Academy of Asia and the Pacific (MAAP), whose curriculum was modeled after america Merchant Marine Academy. He is likewise the government board member of the London-based ITF and a member of numerous different distinguished maritime agencies.

Titles and ranks, however, define so little about his man or woman. Dr. Oca changed into even incredulous when advised that he could be featured in the Profile section of The Manila Times. He cheerfully disregarded questions about himself and opined that different human beings could describe him high-quality, all the even as hesitating whether he should supply his curriculum vitae and laughing on the apparently impossible concept of him being featured by using a daily.


"Dok likes to funny story around. He is the proverbial lifestyles of the celebration together with his corny jokes but he has the uncanny capacity to seize you flatfooted while you attempt to dismiss him as someone who is not as critical as Captain Oca," Manila Times Maritime editor Carmela Huelar says, regarding the overdue Capt. Gregorio Oca, founder of AMOSUP and one of the pioneers and pillars of the Philippine maritime industry.

"It's unsettling when human beings think he's joking but understand too overdue that he knows exactly what he is announcing, a truth within the guise of a comic story," Huelar persevered.

Indeed, this type of shell of joy was momentarily cracked by way of the point out of his father's name.

When asked as to his enjoy of taking up his father's legacy, a fleeting silence took over Dr. Oca. He attempted to come up with something witty but ended up inquiring for a tissue to blot the looming tears. The man did now not cry, though. His voice most effective misplaced its typical sparkle and become replaced by way of a quivering, quiet sound. He became abruptly extreme.

"It became tough [stepping on his shoes]. He turned into an institution. Everybody knew him and he left so much legacy for everybody to hold on. I turned into lucky to tackle his desirable paintings and keep what he started," Dr. Oca stated in a low voice.

"His endeavors are already set up and strong. We are really persevering with from where he left and from my element, it became a be counted of starting and strengthening relationships together with his companions, colleagues, and employees," he said, referring to the time while he needed to introduce his fashion of management that, on the outset, isn't the same as that of his father's.

"When it comes to negotiating the welfare of seafarers, Capt. Oca never backed down. He changed into so chronic. But at the back of that stern outdoors is a humorousness, a trait this is virtually inherited by means of Dok," Huelar said.

People agree that Dr. Oca has a tendency extra to the diplomatic aspect of leadership. This, however, is tinged with firmness on the subject of seafarers. "You should think of your goal whilst you are sitting throughout people and negotiating, and that is the gainful employment and welfare of our seafarers," Dr. Oca stated.

As he sooner or later sat on the makeshift studio to begin with taping a message to seafarers as AMOSUP is also celebrating its sixtieth yr this month — his workforce soaring approximately straightening his blouse and taming his hair — he resumed his vintage jolly self, giggling at rehearsals and even greater at some point of shoots. The guy may additionally have big footwear to fill but he never misplaced his pleasure and ardour.

And as the director known as "movement", Dr. Oca, sitting beside the strict-looking picture of his father, took on an similarly solemn expression and started out handing over his message to the Filipino seafarers — honest however with the uncanny sound of a grin.

Marina allows online ship audit

The Maritime Industry Authority (Marina) has carried out the recommendations in undertaking a far off inspection of ships and shipyards underneath the 'new normal' inside the maritime enterprise.

Marina Administrator Vice-Admiral Robert Empedrad issued Marina Advisory 2020-75, at the implementation of conduct of far flung inspection, survey, audit, compliance monitoring of employer, deliver, and shipyard, given the implementation of social distancing and mobility restrictions to save you similarly transmission of coronavirus ailment 2019 (Covid-19).


Marina allowed far flung inspection of ships and shipyards to make sure the safety and nicely -being of all, amid the Covid-19 pandemic.

"The faraway inspection, survey, audit, compliance tracking of companies, ships and shipyards shall be performed through on line video communication structures," Marina said.
The inspector, surveyor, auditor, and enforcers should use appropriate devices with a reliable internet connection to manage video communique. The officials and crew on board the deliver have to put on the correct uniform or attire at some stage in the inspection.

The online audits need to be coordinated with Marina's Shipyards Regulation Service (SRS), Maritime Safety Service (MSS), Marina Regional Offices (MROs). The special Marina technical employees from SRS, MSS, and MROs will assign a date for the inspection, survey, audit as quickly as the software is obtained and duly assigned.

The MSS will constantly undertake compliance tracking or random inspections to verify compliance of ships and shipyards with Marina policies and guidelines and different applicable legal guidelines.

The refusal of the corporation to undergo faraway compliance tracking or non -cooperation with none legitimate cause might be deemed non-compliance with present Marina regulations and regulations.


Marina inspector or enforcer can also advocate revalidation or reinspection of the qualification and preserving requirements of the deliver or shipyard specifically on protection.

"The far flung inspection, surveys audits, and compliance tracking are with out prejudice to the conduct of the same in an actual or onsite association if the situations warrant, especially on situations which can be determined to pose an drawing close risk to the ship, shipyard, lives, or the surroundings, issue to stringent statement of protection and fitness protocols," in step with Marina Advisory.

The tips will take effect without delay and could remain valid and subsisting till otherwise revoked or till the pandemic situation ceases, whichever comes in advance.

Vicente Poño, Chairman of the Board, Ship Managers Association of the Philippines (SMAP) said in latest months, deliver surveys suffer due to the fact surveyors were unable to tour. During that point, the administration issued circulars permitting deliver managers to request for extension of survey due dates.

He said elegance society has been running to provide ship managers with far flung surveys making use of ICT deliver survey structures for hull and equipment, primarily based on condition, monitoring, or assessment.

Ship managers control jobs through digital conversation, which may be very powerful in the course of a plague.

SMAP believes that faraway survey applies to Philippine-flagged vessels even those in the domestic change.

Avenir Advantage has been chartered by means of Petronas LNG to provide ship-to-ship LNG bunkering to vessels across Malaysia, and shipping offerings as an LNG provider for small-scale terminals within the area.

Avenir LNG's CEO, Milorad Doljanin said the flexible layout of the vessels way the ships can guide the development of the LNG bunker fuel market in the shorter term.

It underpins its strategic objective of enabling LNG supply to energy customers who had been formerly not able to enjoy the environmental and cost advantages which LNG presents.

Keppel O&M is currently building 8 twin-gas vessels and is also promoting LNG as a marine gasoline through FueLNG, its joint undertaking with Shell Eastern Petroleum, which presents safe truck and vessel LNG bunkering answers in Singapore. GVF

Germany next banks’ destination after Brexit

BERLIN: Germany is the most popular EU vacation spot for banks leaving London following Brexit, with monetary institutions expected to transport 675 billion euros in property and create 2,500 jobs, the Bundesbank stated Monday (Tuesday in Manila).

The German critical bank expects lenders to transfer 397 billion euros ($462 billion) more than the 278 billion euros it has already moved from Britain submit-Brexit, it said in a look at, as negotiations intensify surrounding the conditions for the United Kingdom's new relationship with the European Union.


The European Central Bank estimated in August 2019 that 1.3 trillion euros in property could be transferred to the eurozone from Britain ahead of Brexit.

Britain left the 27-state bloc on the quit of January, however is presently negotiating its destiny relationship with the EU amid a transition duration that ends on December 31.
The spectre of a "cliff-part" no-deal Brexit, which might upload greater barriers to go-border business, has risen in latest weeks as negotiations stalled over fair-change policies and fishing rights, with EU Commission chief Ursula von der Leyen pronouncing ultimate week that talks had been in a "vital section."

The Bundesbank take a look at confirms banks' desire for Germany as a base for operations far from London, estimating a total of 675 billion euros in relocated assets.

By comparison, round 150 billion euros of belongings will be moved to France with the aid of the stop of the 12 months, France's principal bank governor stated.

Sixty-4 monetary institutions have applied for banking licences in Germany, with 40 up to now having been authorised, and the remainder pending.


Financial establishments moving operations out of the City of London have to enhance bank workforces in Germany by way of as many as 2,500 positions.

US bank JP Morgan stated in September it'd shift some 2 hundred billion euros ($233 billion) from the square mile to Frankfurt, which might make it considered one of Germany's biggest lenders through belongings.

The Bundesbank additionally stated the financial quarter turned into generally properly organized for Brexit, echoing ECB supervisory board chair Andrea Enria, who said that banks are "now equipped to take the hit, to a point."