George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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mrtibbles - gold mining company :-)
Central Banking
Powell presser
If you thought the press conference of Jay Powell would provide some clarity for the markets... guess again. Stocks initially rallied Wednesday, but ended the day lower, and futures sold off heavily overnight, only to pare much of their losses. Meanwhile, the yield curve shrank to the flattest since 2020 following the FOMC meeting, with two-year Treasuries extending declines today even as 10-year notes rebounded.
Quote: "This is going to be a year in which we move steadily away from the very highly accommodative monetary policy that we put in place to deal with the economic effects of the pandemic," Powell declared. "I would say that the committee is of a mind to raise the federal funds rate at the March meeting, assuming conditions are appropriate for doing so. I don't think it's possible to say exactly how this is going to go, and we're going to need to be, as I've mentioned, nimble about this so that we can respond to the full range of plausible outcomes."
The hawkish pivot, coupled with uncertainty, comes as red-hot inflation plagues the economy with an annual rate of 7% seen in December. The central bank also approved one final round of asset purchases, bringing an end to its pandemic-era bond-buying in March. There will be additional discussions about reducing the Fed's nearly $9T balance sheet, which will be "led by the incoming data and evolving outlook."
What's in the cards? Following the press conference, futures betting markets showed an 86% chance of a 25 basis point hike for the March FOMC meeting, while 14% predicted a 50 bps increase (a half-point hike hasn't occurred since May 2000). "Powell said that the Fed's focus has always been on the underlying economy, and a byproduct of that has been inflated asset prices," noted Max Gokhman, chief investment officer at AlphaTrAI. "But now that inflation is here and real while labor markets have slack, it's time to focus on fighting that fire, and if that burns euphoric bulls then so be it."
Facebook's (FB) grand plan to bring cryptocurrency, or more specifically stablecoins, to the social network's billions of users has reportedly gone up in smoke. The idea was to have money spent, transferred and paid across its platform just "as easily as sending a text message" and could even bring financial services to many of the world's underbanked citizens. While the company initially hoped to peg the asset to a basket of currencies, which used distributed ledger technology, it eventually narrowed its focus to one-for-one to the dollar to reduce volatility.
Backdrop: Facebook founded the Libra project, now known as the Diem Association, back in 2019, though the initiative immediately struggled to get off the ground. As regulatory scrutiny picked up across the globe, many founding members pulled out of the endeavor including PayPal (PYPL), eBay (EBAY), Stripe, Visa (V) and Mastercard (MA). Policymakers cited existing privacy concerns about how Facebook handles user information, and they saw the potential for the new scheme to enable crime, money laundering and erode their control over the monetary system.
Last October, Facebook (should we be saying Meta?) finally launched a "small pilot" to test its crypto wallet Novi, but without its planned cryptocurrency called Diem (it used a different stablecoin called the Pax Dollar instead). Criticism from lawmakers immediately erupted, while David Marcus, the founder of Diem, subsequently left the company. The project also attempted to shift its operations from Switzerland to the U.S. - with crypto-focused bank Silvergate Capital becoming the exclusive issuer of Diem - though the Federal Reserve "dealt the effort a final blow."
Outlook: Meta currently owns about a third of the Diem venture, with the rest retained by venture capital firms and tech players that are members of the association. While discussions are still in the early stages, Bloomberg reports that Diem's intellectual property might be sold to in order to return capital to its investor members. The association is also looking out for a new employer that could take on the "engineers who developed the technology, and cash out the value left in the project."
Which goldie is that Chique?
Wingingit
Don't beat yourself up ,this is the usual reaction from the market taking the chance to churn the shares and stamp down the POG when Powell talks about the the POSSIBILITY of 4 or 5 interest rate increases of a piddling 0.25% a time, he has'nt actually raised them yet, and even if he does people have still got to be able to repay the interest rates,and they can't cope now!
Will raising interest rates this time curb inflation, might do, might not, the situation is somewhat different considering all the other factors in play this time prices may just keep rising and raising rates further could bring about another market crash and what does the FED ans all the other central banks do then, bail out buggers that have caused the crash and make the ordinary people pay the bill by printing more money, Oh and cut interest rates!
The worlds monetary system is buggered, the ultra rich have moved their wealth to tax havens, Amazon, Apple, Microsoft, Mc Donalds ,Star Bucks and most of the other multi nationals aided by our worlds crooked political elites exploit the broken and unfit for purpose system to the full and the ordinary people pay the price!
Because of the previous Sukari managements, corner cutting and flawed mining practice the share price has been decimated to the pain of many long term holders, but that said just like them in the past you have been able to buy in at bucket shop price!
It is annoying to long term share holders to say the least when it becomes apparent that the previous management are guilty of creating a dangerous almost unworkable mess at Sukari, rather than than than world class mine they promised and that many millions of dollars have been squandered on drilling holes in Batie West, but infuriating as it is ,that is the past!
Now under the new professionally competent and focused management Sukari will become the promised world class mine, able to operate safely and deliver estimated guidance on a sustainable basis and if all goes as planned the flagship mine of a number of other Centamin operated and profitable gold mines.
It's easy to became depressed at times like this, but there is the likely hood of some very positive developments as we progress through 2022!
Tibbs
Berenberg £1.12 buy
The reason I sold out here on the last rally to 1850 was the belief that the Fed would respond and have this effect. I bought into a goldie with an AISC of 680 and production of 85k oz , which to me somewhat cushioned any fall in gold price
Winging don't kick yourself. A lot of us have done far worse and that is a promise.
Might be opportune time for the management to sell all the West African assets it intends to and use some or all of proceeds for a share buy back at this level?
Or use the WA sale proceeds to cover some of the Sukari waste clearance costs and for Egyptian exploration and mine development costs ?
If the share price remains at this level it will be wise to transfer up to the £20,000 use all this years allowance and 2022's or x2 if the spouse has opened an ISA, the the lovely divi will be tax free , just like all the Tory Toff's enjoy!
I did think 1800 would hold a little longer!
Wonder where CEY Will bottom. Kicking myself for the 91p top up
This morning, IG announced a record first-half performance. Net trading revenue increased 16% to £471.9m over the six months to the end of November. Pre-tax profit also rose 8% to £245.2m. That’s pretty impressive stuff considering that markets were fairly stable over the period (IG makes money when traders try to capitalise on volatility).
Today, the FTSE 250 member elected to keep its interim payout steady at 12.96p per share. Assuming the full-year cash return stays at 43.2p, that means IG yields 4.9% — eight times what the best Cash ISA will give.
At yesterday’s close, IG shares traded at just 11 times earnings. While the threat of further industry regulation may go some way to explaining this valuation (and dividends are never guaranteed), I’d have no issue buying more.
Another option
Of course, IG isn’t the only cheap dividend stock out there. Shares in Polar Capital Holdings (LSE: POLR) also grab THE attention.
The fund manager’s price has tumbled 19% in 2022 to date as investors have become increasingly skittish. As far as I can see, it’s nothing to do with Polar itself.
https://uk.sports.yahoo.com/news/forget-cash-isa-d-buy-125328961.html
The Most Shorted Stocks on the FTSE
January’s spike in market volatility came after a fairly benign 2021 for stocks, reminding investors that what goes up sometimes also comes down. Whether this is a long-expected collapse or just a wobble is hard to tell at this juncture. What a market correction does do is offer opportunities for short sellers, who bet on the prices of share prices falling.
There have been plenty of heavy one-day falls in recent trading sessions, especially in the US, where Peloton (PTON) and Netflix (NFLX) have plunged on negative newsflow. In UK we’ve seen some strong price moves in individual stocks, not least at The Hut Group (THG), whose shares are down 40% so far this year after a precitipous decline in 2021.
Handily, the Financial Conduct Authority (FCA) produces a daily list of the most shorted stocks. This dynamic list gives an insight into what professional investors think about particular sectors, and sometimes gives an early warning sign of a company in trouble. That could be helpful to retail investors if they’re looking to sell out of an underperforming stock.
The list shows changes in sentiment towards certain sectors: oil shares were heavily shorted in 2020, for instance, but the latest rebound means they have dropped out of the main list.
What's on the daily FCA register of short positions is always of interest to investors, large and small
https://www.morningstar.co.uk/uk/news/218418/the-most-shorted-stocks-on-the-ftse.aspx
MrBond and other readers,
For those of us in the investor position, is the best thing to do nothing and just come back in 12 months time and let whatever course flows happens? Tony
Tony I am afraid you are right.
And will continue till end of year,when time runs out for them.
Then hopefully they will feel the pinch.
Dont forget all equities are feeling this ,thanks to FED and Bankster mafias.
So called major gold support gone will God knows how many paper gold contracts. This is before Chinese New Year.
Shares in this stock are close to a 5 year low. Is there still an inherent risk investing in Egypt?
Quite so Mr Gnome!
The other view, from a friend in the US
" When Germany and Russia make a deal for a pipeline that will bring energy across Europe and the US blocks it, is Russia the villain?
When the US prevents poorer African countries from accepting Chinese money while China keep us afloat by buying treasury bonds and aiding US companies with labor, factories, and parts, is China the villain?
At what point does US imperialism and propaganda stop being everyone else’s fault?"
You think the US would have invented something more productive than shooting one another,
You think the US would have invented something more productive than a conlficted, rickety self serving financial system
oh well, back to the tennis... Ash Barty is into the finals, and she is a real champion !!!!
best
the gnome
From a good friend in Russia
"Gas crisis is created by US and EU, because they blocking North Stream 2 pipeline . Gas prices can be dropped back where it was just overnight, all what is needed just to open the valve at the north stream 2. America by blocking north stream 2 wants Russia to continue pumping gas through Ukraine , and this is what creates crisis.
Hungary signed contract for 15 years for getting Russian gas via Turkey pipeline, avoiding Ukraine and Hungarary doesn’t experiencing any gas shortages .
No crisis at all, plenty of gas in north stream 2 pipe, just Europe not opening the valve to use it. If they prefer to freeze."
And so the new great idea is "lets have a war" and it develops, and blame? ...Russia this time (must spread it around, Iraq, Afghanistan, Libya, Vitenam, Venezuela, etc etc ... yawn).
https://www.cfr.org/global-conflict-tracker/conflict/conflict-ukraine
Black Adder was devestating
https://www.youtube.com/watch?v=rblfKREj50o
back to the trenches LOL
good luck, the US Game is as old and tired as the us$
the gnome.
The world's largest stock market in the US has already lost 10 percent of its value in the first few weeks of this year as Joe Biden's administration come under mounting pressure. Stocks in the global superpower have tumbled as fears continue over potential interest rate hikes, which have spooked "growth" investors who are now backing businesses that are expanding rapidly but often generate little to no profit. Historically, interest rate hikes have sent forecast profits plunging, meaning companies promising future rewards are less appealing to investors around the world.
On Tuesday, the FTSE 100 dropped 2.6 percent while the FTSE 250 plunged 3.6 percent as increasing fears of conflict between Russia and Ukraine, as well as the prospect of higher interest rates, spooked investors.
In a day of turmoil in the City of London, that had wiped £68billion off the value of Britain's 350 leading listed companies.
But a totally different story is unfolding in China - home to the world's second-largest economy behind the US - where shares in the country are quickly gaining ground.
Hong Kong's Hang Seng index has overtaken the American benchmark S&P 500, reporting gains of six percent since the start of this year.
In a major boost for China, its central bank has cut a key interest rate for the first time in almost two years in a huge attempt to inject significant momentum into the economy.
The move has improved the outlook of shares following a controversial crackdown on regulations in 2021 that saw some of the biggest companies in China take a massive hit.
Paris Jordan, of the wealth manager Waverton, explained: "China is one of the few countries that is cutting rates, with most developed nations tightening their monetary policy.
"As such, this could be a tailwind for the stock market and appears to have created an attractive buying opportunity."
Sharukh Malik, manager of the Guinness Best of China fund, said stocks in the country appeared cheap on a historic basis.
The expert said: "At a 12.6 times multiple of 2022 earnings, they are valued at an eight percent discount to the average over five years, since the big technology stocks were added to the index.
"There is little future growth priced in, though market earnings are forecast to grow 16 percent a year in 2022 and 2023.
"This is faster growth than the wider Asian region, faster than Europe and faster than the US and yet is valued much lower."
The US wants a war to keep King $ on the front foot hence the sabre rattling within NATO orchestrated by the US, but will Putin bite?
Anyhow standby for stagflation in the coming months no matter what rhetoric is spouted imho..
Can confirm gold is heading back up in pounds. Now just a £5 down on yesterday. So the FED has talked up the dollar value to try and help lower inflation perhaps. There is a limit what talking can do. I suspect gold gaps in charts to get eventually back filled.
Dollar strength has pushed gold lower this morning. It has gapped the charts in London and Asia. At some point gold will go up and we await the next move. Gold has barely changed in pounds say around $10 an ounce from its peak. We shall soon see how they play it.
Added on the dip yesterday risking the rate increase. Perhaps a bit prematurely. Was always a LTH for me regardless. Looking forward to boost in output and back to higher gold prices once all this crypto rubbish dies down