Thanks Fleecy.... Was explaining the reason why many mis-spell your post name.... You may like this INVESTOR'S CHRONICLE (current issue) BELOW :-
"The lesson to learn is that breaking from consensus can be a very profitable approach – in fact, logic dictates that you will not outperform the market unless you do so. But this market timing approach is easier said than done, especially against a noisy – and quite likely misleading – backdrop of short-term economic data. As Warren Buffett once put it: “the stock market is a device for transferring money from the impatient to the patient”. Indeed, just as changing lanes in a traffic jam won’t get you to your destination any faster, so jumping around the market is less likely to make you rich than buying quality assets when they’re cheap and holding onto them for the long term."
The stress tests find Europe’s bank sector would survive fresh crisis. That's very encouraging for investors. It's another uncertainty out the window and as a result the bank sector should open up Monday.
The EBA hypothetical stress tests are not BS. Scenarios like if GDP falls x% and what happens? Is for investment good, it is for rectification information. It is win win, information aid. Conversely, keeping it a secret, ignoring it, non-transparent was why the 2008 GFC occurred -- Cries of we do not want to know, we will not prevent it. Drown it out, no or little prevention. Thousands were actually pointing it out. Shoot all those messengers was the mantra of 1999 and beyond 2008.
Instead Money Supermarket fee based lending, at places like HBOS (Crosby and Hornby), pushing PPI as well as the best thing going, and then the non due diligence take-over of HBOS by LLOY - has severely damaged a great bank. period. It was preventable. If folks want to be ignorant of the facts, please ignore.
If anybody wants loose lending and also wants to invest in such companies doing the lending, it is their choice.
Carney and Bailey made it well clear that LLOY is in good shape, the capital buffers worked well. BOE got a lot of stick from ignorant posters, for the BOE being knowledgeable and correct -- rgds RM
Hi Mick, the reason I got on a high horse about Lloyds and Barclays was purely down to the markets reaction to the respective banks results. I think Barclays is extremely undervalued and deserved a much bigger rise, but the market isn't reacting to the information released in a consistent way. Whichever way you look at it, Lloyd results were better than Barclays. Lloyds is downsizing it's branch network and has been for a long time, I've no doubt that the property disposals will more than cover any redundancy costs, as many of the closures are in sought after areas. Barclays still has to unload a lot of its non core assets and not necessarily at a good price. I just think the market is undervaluing both banks, but aren't reacting to the results as I would have expected. Needless to say, I trust my own judgement over the market's.
Could not post some things last night - until NDA v public domain checked out. MBNA have poor risk controls. - it is a known
EBA, formerly CEBS, is not just a re-branding - they have real teeth, and now have superirority over the sovereign regulators, it was the other way around beforehand.
Lloyds will be fuly floated before the we leave the EU in Dec 2018 - which simplifies things.
By the way AHO is smart, and he was a keen Brexit man (knows European Banking of course), despite GO Osborne being his effective boss and big shareholder. That was super brave stance by him. But correct. We also now have a much better Chancellor.- rgds RM
Thursday will be the day. 80% of analysis predicted a cut would happen in July. It didn't happan. I still think its too early for a cut.
03.45am - China Caixin manufacturing PMI (July): Analysts expect the figure to come in virtually unchanged at 48.8, compared with 48.6 in June.
Market to watch: AUD crosses
09.30am - UK Markit/CIPS manufacturing PMI (July, final): The final figure is expected to remain unrevised from the preliminary figure if 49.1. That was the first indication that the Brexit vote is going to lead to economic deterioration, being firmly in contraction territory and the worst reading since March 2009.
Market to watch: GBP crosses
15.00pm - US ISM manufacturing PMI (July): Expected to come in virtually unchanged at 53.0 compared with 53.2 in June.
Market to watch: US indices and USD crosses Tuesday
05.30am - Reserve Bank of Australia interest rate decision: Will it cut, won’t it cut? The chance of a further cut in the cash rate target to 1.5% from 1.75% appears a touch higher after second-quarter inflation hit a 17-year low of just 1.0% on the year. There’s certainly no certainty – underlying inflation rose 0.5% on the quarter and 1.7% on the year.
Market to watch: AUD crosses, NZD crosses and Australian indices
09.30am - UK Markit/CIPS construction PMI (July): The figure dropped to 46 in June, from 51.2 in May, marking the first contraction since the start of 2013 and Brexit fears took hold. Economists expect an even worse figure for July at 45.2
Market to watch: GBP crosses Wednesday
09.30am - UK Markit/CIPS services PMI (July, final): The preliminary services PMI reading also slipped into contraction territory following the Brexit vote. The final reading is expected to remain unchanged at 47.4, compared with 52.3 in June.
Market to watch: GBP crosses Thursday
12.00pm - Bank of England interest rate decision: The central bank held fire in July in the immediate aftermath of the Brexit vote, but has said it will need to ease monetary policy because it expects economic fallout from the vote. So will it cut interest rates from the 0.5% level held since 2009? Or does it bring back Quantitative Easing and/or expand its Funding for Lending scheme? There’s no indication the UK is heading for recession yet, but all the recent surveys suggest a downturn is coming.
Markets to watch: GBP crosses and global indices
15.00pm - US factory orders (June): The decline in factory orders is expected to accelerate to 1.2%, from the 1.0% contraction recorded in May.
Markets to watch: USD crosses Friday
13.30pm - US non-farm payrolls (July): June heralded a market turnaround from May’s shock figures as 287,000 jobs were added compared with just 38,000. So was May a blip in the growth road? Economists expect the addition of 175,000 jobs in July. The unemployment rate is expected to remain steady at 4.9% and average hourly earnings are expected to rise 0.2%,
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