Athens Must Deliver on Reforms Under latest Bailout Deal

Following an E.U. bailout offer slated to start in two years, Greece’s 10-year bond yields dropped below 8 percent, a decrease not seen in over 6 months.

The offer to Athens is dependent on the government following through with certain financial reforms connected to the agreement.

The small print of the deal, which was opposed by Germany which believes a bailout is a mistake, will be hammered out by euro zone economic authorities before the end of the month. In contrast to the German view, the IMF was convinced that a further loan agreement is the only option.

Debt relief will begin to flow once further deals are reached concerning the country’s fiscal reforms. The reform deal is expected to be confirmed in the next few days according to comments by the Eurogroup following its meeting last Monday.

“The International Monetary Fund has been fairly insistent on a course of action that sees further loans being made to prop up the Greek economy. It seems as if Germany are now coming around to the idea, if not wholeheartedly, and that is restoring some investor confidence” said Robert Barkley, – Executive Vice President of Portfolio Management at Orix Trading.

The financially beleaguered country saw its 10-year…….

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Office supplier deal breaks down following federal intervention

A proposed deal to unite two of the country’s biggest office suppliers collapsed last week after a judge agreed with federal antitrust authorities that the merger would result in an unfair monopoly.

After the ruling shares in the two companies, Office Depot and Staples, plummeted 25 percent and 11 percent respectively.

Judge Emmet Sullivan of U.S. District Court for the District of Columbia thwarted the $6.4 billion deal…….

……….“You really don’t want to second guess a judge’s decision based on their actions during a hearing,” said Robert Barkley, Executive Vice President of Portfolio Management at Orix Trading. “Having said that, I am relatively surprised that the result went the way it did having observed Sullivan’s attitude toward the FTC in the course of the trial,” he added.

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Alibaba Digital Sales Up 39% on Increased Public Spending in China

The Alibaba Group, owners of China’s greatest online commercial centers, is getting more cash out of abating development.

The Chinese e-commerce goliath, who lists shares on the NY Stock Exchange, published a press release on Thursday showing a surge in profit and income in the initial three months of the year contrasted with the same period a year prior. The organization profited charging retailers to……

…….Robert Barkley, Executive Vice President of Portfolio Management at Orix Trading commented, “Alibaba are still doing well. Even with the dips in its satellite activities the core business is still making great strides in the online marketplace and is far and away the leader in its field.”

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Japan’s Prime Minister To Release 10.3 Trillion Yen Stimulus

The current Prime Minister of Japan, Shinzo Abe, has revealed that the government has decided to push 10.3 trillion Yen into the Japanese economy. This is the first major policy step the current government has taken to promote growth and push the Japanese economy out of recession.

In a statement released by the Cabinet Office, it was announced that of the total sum approximately 3.8 trillion Yen will be allotted to reconstruction and disaster prevention sectors and another 3.1 trillion Yen will be put into promoting private investment. The government is of the opinion that the money pushed into the economy will provide returns by accentuating the gross domestic product by about 2 percent. The government also stated that the fiscal stimulus would create close to 600,000 new jobs in Japan.
An increase in China’s inflation was seen today while most other Asian economies rebound. It is believed that these factors will help Japan to emerge from its third recession. However, certain concerns were raised from various quarters of the financial world. Some pundits believe that increasing public debt to twice the size of economy might cause an undesirable increase in bond yields.

More recently, Japan’s short-term bonds witnessed an upsurge while the country’s long-term debts dwindled. This has caused the yield spread between the 30-year and 5-year securities to reach an all-time high since March 2010. The benchmark 10-year note also saw an increase. This has caused the yield to decline by one basis point. The yield is currently at 0.81 percent which is the lowest it has been since December 28.
While speaking to a group of journalists in Tokyo, the Prime Minister said that his government is wholly committed to economic revamping and this is supported by the proposed fiscal stimulus.

The Central Bank of Japan has offered solid support to Abe. Following the advice of the Prime Minister, Japan’s central bank has decided to increase its inflation target to 2% from the current 1%. The bank has not yet put a timeline for achieving this target.
Robert Barkley, Executive Vice President of Portfolio Management at Orix Trading says, “The fiscal stimulus which the Japanese government is planning to release into the economy has the potential to change Japanese economy for good. People are already putting their bets on Japan. Since the government is already doing whatever it can to pull Japan out of recession, this fiscal stimulus will put the onus on the Central Bank of Japan. The BoJ may finally have to relent and begin easing.”

According to the data…..

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Oil Price Jump Brings Good News for Australia

The Australian share market opened with a bang. This upsurge in the share market can be attributed to the fact that the price of crude oil climbed in the offshore session. When the official market opened at 10:15 am, the share market’s benchmark S&P/ASX index climbed by 0.62 percent or 32.1 points and reached 5,219.8. At the same time, the all ordinaries index climbed by 0.61 percent or 32 points and reached 5,282.9.

However, the share markets were affected most by an increase in the price of Brent crude. In a single night, the price of Brent crude climbed by 2 percent and reached $47 per barrel.
Robert Barkley, Executive Vice President of Portfolio Management, at Orix Trading says, “A weaker dollar and an increase in oil prices have led to an upbeat commodity sentiment in general.”

He added, “The Reserve Bank of Australia…..

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Goldman Targets Affluent Borrowers with Lending Solution

Goldman Sachs, sees a future in less prosperous financial investors.
An inventive technique coming to fruition inside the bank calls for it to band together with smaller financiers and wealth administration firms to loan funds to their customers, a significant number of whom have far less money than what’s in the run of the mill Goldman private ledger.

The bank is hoping to make earnings from a more extensive borrower base as benefits from conventional methods like bond exchanges have backed off. In April, Goldman finished an arrangement to purchase $17 billion worth of online assets from GE CapitalBank to push its growth on Main Street.

“Developing the loaning business to a more extensive customer base counterbalances a portion of the pain that has been occurring on the trading level” said Robert Barkley, Executive Vice President of Portfolio Management at Orix Trading.

Loaning to richer people and corporate types amounted to…….

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EU Referendum: 110 Bosses Support EU Exit

More than 100 influential business bosses came together to support the campaign for the UK to quit EU. The group is of the opinion that the City of London will flourish and boom if its leaves the EU.

According to these 110 business bosses, excessive regulations being imposed by the EU will harm London’s supremacy in the global financial services sector. However, according to another school of thought, leaving the EU will cause job losses as well as a decline in investment.

In the referendum campaign that was held previously, institutions like the CBI and EEF supported the idea of the UK staying in the EU. Likewise, people who are supporting the idea of UK staying in the EU had also brought the support of 36 FTSE 100 bosses to support their claim.

Economists, traders and politicians have been discussing and weighing the impact of the UK quitting the EU’s single market. This move will affect trade deals and thus, the economy of UK.

However, the current government is of the opinion that quitting the EU is not a good move for the UK as leaving the Eurozone will hamper economic growth and reduce the household income of people.

Contrary to this, leave campaigners are stating that all such claims of the government are untrue and that the government is only trying to scare people. In their letter to the Evening Standard, the 110 business figures have said that, leaving the EU will not reduce growth. Instead, it will cement London’s status as the world’s largest international financial centre.

Chained to the Euro
Drawing from their personal experiences, the signatories, which includes an impressive list of Chief Executives, Economists and Fund Managers, said that they are devoted to establishing and maintaining London’s status as an ideal and competitive place to do business. The signatories warned that the EU’s intentions are contrary to that of the UK and thus, staying in the EU will harm UK badly in the long run.

Robert Barkley of Orix Trading says……

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Japan Fast Approaching the Quantitative Limits of Quantitative Easing in light of New Highs in Yen in Q2 and Lower Valuations

Currently, the bank of Japan is running out of bonds from the government to buy. The Central Bank would be counterparts are also not willing to sell the debt which monetary policy makers have made a pledge to buy. The 30-year bond that was most recently used failed to record a single trade during a session last week since current owners opted to hoard all their holdings. The Japanese Central Bank has come up with a target of $960 billion in purchases of government bonds every year in a continuous attempt to curb deflation. This amount is about three times the issuance rate and sums up to about 1% of GDP, according to Orix Trading Executive Vice President of Portfolio Management, Robert Barkley.

However, safe assets such as government debt are not as attractive to central banks looking to coerce investors into other riskier assets thus push down the cost of borrowing. These assets are also in high demand by financial institutions since they can be used as collateral. This comes from the reasoning that whenever there is a dearth of safe assets…….

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In the last three months of 2015, the economy of Japan slumped majorly.

It’s been three years since Shinzo Abe, the Prime Minister of Japan, took oath. His ‘Abenomics’ plan was unleashed with the intention of freeing Japan from the claws of deflation. However, the nation has remained stuck in cycles of expansion and contraction since last three years.

At the end of the year, the Gross Domestic Product had shrunk by 1.4 percent. During the third quarter, the Gross Domestic Product had exhibited a 1.3% increase. Bloomberg News had surveyed a few economists earlier this year. The economists were of the opinion that Japan will exhibit a decline of 0.8% However, the final number, which is 1.4%, is far ahead of what the economists had predicted.

One of the prime reasons behind this slump has been reduced private consumption. A decrease in private consumption has directly hit Abenomics, Shinzo Abe’s ambitious economic plan for Japan.
The Economic contraction affecting the country has also affected the Yen. Japanese currency registered a hike of 5.6% against the Dollar. This is not a good sign for exporters.

The Bank of Japan had recently released a money stimulus. However, given the increase in the value of Yen, the money stimulus has been able to do little for the exporters especially.

According to Robert Barkley, Executive Vice President of Portfolio Management at Orix Trading, “The household consumption has weakened in the last couple of months. It was believed that seasonal factors will induce growth. However, people aren’t willing to loosen their purse strings.” He further explains, “If Yen continues to grow…..

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Japans’ 10.3 Trillion Yen Fiscal Stimulus — Extra Spending in a Bid to Enhance Economic Growth

In a bid to end deflation and enhance economic growth, the Japanese government is planning a recovery mission that is speculated to cost over 10.3 trillion Yen, the equivalent of $116 billion. This initiative marks the Japanese Prime Minister Shinzo Abe’s first major policy initiative aimed at restoring economic stability of Japan.

The government has structured the initiative in a way that will see the larger portion going to the sector for disaster management and reconstruction, which accounts for 3.8 trillion yen. The other part of this budget will be promoting the private sector. The private sector investment will be granted 3.1 trillion Yen, out of the total 10.3 trillion Yen. The budget is aiming at increasing the Gross domestic product (GDP) by over 2% and boosting the job sector through the creation of 600000 jobs.

What are the possible effects of this economic stimulus?
Contrary to China’s inflation pick-up, Japan, one of Asia’s biggest economies is recording a negative growth rate. The newly elected Prime Minister must reorganize the strategies in a way that will fully convince the citizens of Japan about the economic stability of their nation. Mr Abe has to lead the way and organize the country’s priorities to rescue the…..

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