Today - Monday, November 30, 2015
- BlackBerry (NASDAQ:BBRY) is shutting its Pakistan operations to avoid allowing authorities in the nation to monitor its main business enterprise server and e-mail messages.
- The Pakistan Telecommunication Authority notified the country's mobile phone operators in July that BlackBerry's BES servers would no longer be allowed to operate for security reasons, Marty Beard, chief operating officer at BlackBerry, said in a blog post on Monday. "The truth is that the Pakistani government wanted the ability to monitor all BES traffic."
- Update: Since this post, Pakistan has notified BlackBerry that it has extended its shutdown order from November 30 to December 30. BlackBerry will delay its exit from the Pakistan market until then.
- Japan -0.69%.
- Hong Kong -0.33%.
- China +0.26%.
- India +0.07%.
- London -0.24%.
- Paris +0.29%.
- Frankfurt +0.40%.
5:34 AM| 5:34 AM | Comment!
- October monthly performance was: +7.87%
- AUM of $176M
- 52-week performance vs. the S&P 500 is: n/a
- No dividends were paid in October
- Top 10 Holdings as of 10/31/2015: MAN SE (OTC:MAGOF): 3.29%, Cofinimmo (COFB): 1.52%, Sodexo (OTC:SDXOF): 1.47%, Munchener Ruck AG (OTCPK:MURGF): 1.47%, Kabel Deutschland Holding AG (OTCPK:KBDHF): 1.46%, Rhoen Klinikum AG (OTC:RHKJF): 1.45%, Ageas NV (OTC:AGESF): 1.43%, Heineken Holding NV (OTCQX:HKHHF): 1.42%, NN Group NV (OTC:NNGPF): 1.41%, Danone (OTCQX:GPDNF): 1.41%
- BHP Billition (NYSE:BHP) -6.6% premarket after Brazilian authorities threatened a $7.2B legal suit over the company's mine disaster in the south-eastern state of Minas Gerais.
- The amount comes on top of 250M reais ($66.2M) by Brazil's environmental agency for the dam burst, which covered the flood plain in mud for 80 kilometers as well as polluting a major river valley.
- BHP has also confirmed that the death toll from the disaster had risen to 13, with six people still unaccounted for.
- Previously: Brazil to file $5.3B suit against Vale, BHP over mining disaster (Nov. 27 2015)
- Previously: BHP sinks after UN dam spill accusations (Nov. 27 2015)
- The International Monetary Fund is expected to grant China's yuan reserve currency status at an executive board meeting today, in a decision that will elevate the renminbi and China's influence in the global economy.
- The group's benchmark currency basket, also known as special drawing rights, so far contains the U.S. dollar, euro, British pound and Japanese yen.
- Although the decision is likely to be announced later today, the yuan will not officially become a reserve currency until September 2016.
- ETFs: CYB, CNY, FXCH
- Bids for one of the world's most lucrative defense contracts, to build Australia's new submarine fleet worth up to A$50B ($36B), were submitted on Monday.
- Ten months ago Australia, under pressure from Germany and France, withdrew plans to award the contract to Japan without a competitive tender.
- Key bidders are Germany's ThyssenKrupp (OTCPK:TKAMY, OTCPK:TYEKF), France's DCNS (privately-held), and Japan's Mitsubishi Heavy Industries (OTCPK:MHVYF) and Kawasaki Heavy Industries (OTCPK:KWHIF, OTCPK:KWHIY).
- Bidders must submit three separate proposals: building the submarine fleet in their own country; building the fleet in Australia; and a hybrid option whereby work is conducted in both countries.
- Australia plans to to announce its partner next year.
- Source: FT - see there for an excellent comparison of the the merits and disadvantages of each bid.
- Volkswagen's (OTCQX:VLKAY) top executives knew a year ago that some of the company's cars were markedly less fuel efficient than had been officially stated, Germany's Bild am Sonntag reports.
- Months after becoming aware of excessive fuel consumption, former CEO Martin Winterkorn decided in the spring to pull the company's Polo TDI BlueMotion off the market as the discrepancy was particularly pronounced.
- Winterkorn then resigned in September following VW's admission that it had deceived global regulators, but denied knowing anything about the scandal.
- Japan’s Government Pension Investment Fund (GPIF) is the world’s largest pension fund.
- GPIF was hit hard by this summer’s global stock rout, which wiped out $64B.
- The loss is GPIF’s first (see chart) since doubling its allocation to stocks and reducing debt last October. It highlights the risk of the fund’s more aggressive investment style.
- Fund managers have argued that holding more stocks and foreign assets is a better approach as Japanese Prime Minister Abe seeks to spur inflation that would erode the purchasing power of bonds.
- Source: Bloomberg
- ETFs: DXJ, EWJ, FXY, YCS, JGBS, DFJ, JGBD, DBJP, NKY, JYN, JOF, EZJ, JEQ, JPNL, DXJS, EWV, YCL, SCJ, HEWJ, JSC, JPXN, JGBL, JPP, JGBT, QJPN, FJP, JGBB, JPMV, DXJT, DXJC, DXJR, JHDG, DXJH, DXJF, HGJP, HEGJ, JDG, FXJP, JPN
- Ten companies are expected to begin taking orders for new listings on the Shanghai and Shenzhen stock markets this week, marking China's first IPOs since July, when the government banned new share sales to halt a heavy market selloff.
- The companies are among 28 that are expected to list before the end of the year, part of a backlog of nearly 700 firms.
- Orders for shares must be prefunded under current rules and are expected to temporarily lock up hundreds of billions of dollars in funds, which may have contributed to the Shanghai Composite's 5.5% drop on Friday.
- Upcoming IPOs
- Previously: China to lift IPO ban (Nov. 06 2015)
- ETFs: FXI, ASHR, EWH, CAF, YINN, KWEB, PGJ, GXC, FXP, HAO, YANG, TAO, CHIX, CHN, PEK, CHIQ, CQQQ, MCHI, TDF, QQQC, XPP, YAO, GCH, ASHS, YXI, CN, CXSE, FCA, CNXT, CHNA, CHII, CHIE, ECNS, EWHS, CHIM, KBA, KFYP, FCHI, JFC, FHK, AFTY, XINA, CHAD, ASHX, CHAU
- Swatch (OTCPK:SWGAY) is launching a project that lets Visa (NYSE:V) cardholders in the U.S., Switzerland and Brazil make payments with its new "pay-by-the-wrist" Bellamy watch.
- The transactions will require absolutely no energy from the watch itself, a serious advantage to poor battery life rivals.
- Swatch Bellamy is set to hit the market in early 2016 and will be able to be used wherever contactless NFC Visa payments are accepted.
- Previously: Swatch and Visa to partner on smartwatch (Nov. 25 2015)
- The euro is headed for a steep monthly decline as economists unanimously forecast the ECB will unveil additional stimulus this week.
- The currency has weakened 3.8% in November, its biggest loss since a 4.2% decline in March, when the central bank embarked on a €1.1T asset-purchase program.
- In contrast, the U.S. Federal Reserve is widely expected to hike interest rates at its mid-December policy meeting, sending up the dollar index to 100.23, its highest level since mid-March.
- Euro -0.1% to 1.0585.
- ETFs: FXE, UUP, EUO, UDN, ERO, DRR, FORX, USDU, EUFX, ULE, URR
- European Union leaders and Turkey have agreed on measures to help stem the flow of migrants to Europe and other border controls, aided by a pledge to relaunch Turkey's EU membership bid and a €3B aid package.
- The money is intended to raise refugee living standards to persuade more of them to stay in the country instead of attempting perilous crossings to the EU via the Greek islands.
- Problems ahead? Leaders still haven't agreed on the final sum or how much each nation will contribute.
- ETFs: TUR, TKF
- The Federal Reserve Board is considering a proposal to curb its emergency lending powers, a change demanded by Congress following the central bank's controversial decision to support many "too big to fail" banks in 2008.
- An open central bank meeting today will propose Dodd-Frank provisions that require any future emergency lending be only "broad-based" to address larger financial market problems, and not tailored to specific firms.
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