Tell a friend:
 
.... Business

02nd September 2010
Daily Markets Wrap Up – Tuesday, August 31st, 2010

Global Markets

• Consumer confidence climbed more than forecast in August as Americans turned less pessimistic about the outlook for jobs, easing concern households will retrench.

• Business activity in the U.S. expanded in August at the slowest rate this year, signaling the economic recovery may be cooling.

• Home prices in 20 U.S. cities rose more than forecast in June from a year earlier, reflecting the influence of a government tax incentive and a sign the market was stabilizing before sales plunged in July.

• Canada’s economy grew at a slower-than-projected 2 percent rate in the second quarter, almost one-third the pace of the January-March period, amid a widening trade gap and slower household spending.

• European inflation slowed this month and unemployment held at the highest in almost 12 years in July as companies continued to cut costs to help shore up earnings.

• Spain’s central government budget deficit narrowed by almost half in the first seven months of the year as tax revenue surged and spending cuts took effect.

• German unemployment declined for a 14th month in August after surging exports and investment fuelled record economic growth in the second quarter.

• U.K. consumer confidence unexpectedly rose in August for the first time in six months in a sign that rebounding economic growth is cheering shoppers.

• India’s economy expanded at the fastest pace in 2 1/2 years, increasing pressure on the central bank to extend the most aggressive round of monetary-policy tightening in Asia.
 
 
Caribbean Markets

Caribbean: BBC reports that Standard and Poor’s (S&P), has once again rated the Barbados-based Caribbean Development Bank (CDB) as a ‘Triple A’ institution. In its just-released full analysis of the Bank’s operations, S&P identified the bank’s strong capitalization, its diversified and well-performing loan portfolio, its prominent position as a lender in its borrowing member countries (BMCs), the recent demonstration of strong shareholder support in the form of a large paid-in capital increase, and adequate liquidity.

The BBC also reports that MasterCard’s Latin America and Caribbean (LAC) region has announced its operating results for the second quarter 2010, reporting that it has posted double-digit growth in gross dollar volume, purchase volume and transactions for its MasterCard-branded programmes.

Barbados: In local press reports, the outgoing President of the BET Cooperative Credit Union Limited, Tyrone Branch, raised the possibility of a merger or some kind of strategic alliances with another partner or partners. Commenting on the challenges facing small to medium sized credit unions such as BET, Branch said “It may become necessary to consider merging with a smaller or perhaps a larger credit union or developing some strategic alliances to ensure our services to members can continue,”

Bahamas: The Ministry of the Environment has suspended consideration of all applications for oil exploration and drilling in the waters of the Bahamas as it seeks to maintain and safeguard marine environment. Additionally all existing licenses will be reviewed to determine legal entitlement for renewal.The Ministry advised that it will work to complete and implement guidelines and environmental protocols for oil exploration prior to further consideration of applications.

Jamaica: Local press reports that over US$100 million ($8.6 billion) went into developing the Digital Video Broadcast (DVB) system that powers the LIME Mobile TV service that was launched on Thursday by the telecommunications provider. Jamaica Money Market Brokers Limited (JMMB) plans to issue new preference shares next January to replace $2.5 billion worth of shares that become due in December. The financial institution notified the Jamaica Stock Exchange that two classes of its preference shares will become due on December 14, 2010 and will be paid out in full at that time.

St. Lucia: Planning permission has been granted for a 420,000 sq ft eco-luxury development in St Lucia. The gross development value of the scheme is around US$300m and it will be built in three phases over a five-year period.The venture is the brainchild of commercial property tycoon Robert Whitton, Chairman of ROM Capital Asset Management and Whitton International, and Brad Lincoln, Chief Executive of The Best Group.

Trinidad: The auction of the National Insurance Property Development Company Limited (NIPDEC) $360 million 18-year 6.10% bond to be issued on September 2, 2010 has been oversubscribed, with the total bids received amounting to $854.249 million. The bond was allotted at a premium, with a clearing price of $102.15 per $100.00 face value, offering investors a yield to maturity of 5.90%. Industry reports that Trinidad and Tobago announced the offering of 11 deepwater blocks for bid in its 2010 licensing round. The bid round will be open on Sept. 8. Seepersad-Bachan said 9 of the 11 blocks are believed to be oil-prone, while the remaining 2 are thought to contain natural gas.

Trinidad Composite Index remained at 816.47 and of the 6 stocks traded none advanced, none declined and 6 closed unchanged while Bahamas Stock Exchange index gained 0.05 or 0.01% to 1519.23.

Figure 3: Tracking key Caribbean financial indicators

DISCLAIMER- This document is for informational purposes only. This information is based on the close of the previous business day activity. The information presented is from usually reliable sources. FirstCaribbean has not independently verified the facts, assumptions, and estimates contained in this report. No representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, or completeness of the information and opinions contained in this report. FirstCaribbean International Bank accepts no liability for any loss occasioned by reliance on any information contained herein which may prove to be incorrect.

Discuss Story
 
 
Top Stories  
 
 
   
Developed