Medvedev is pushing for the Russian Ruble to be a reserve currency which would cut into the dominance of the U.S. Dollar. His wish is to make Moscow a global financial hub and to help lift an ailing Russian economy. The Russians saw their GDP shrink 7.9% last year and that marked the worst decline since the fall of communism.
To read a related Bloomberg article, please click here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=a3bvnrUreAF4&pos=6
Jim Sutliff
European banks are facing another round of sovereign debt concerns. Some analysts believe that European banks that have exposure to Greek, Portuguese, and Spanish bonds may have to writedown values. Some firms are leaving cash with the central bank and not lending the funds to counterparties. One reason would be a concern that the counterparty could collaspe.
To read a related Bloomberg article, please click here:
http://www.reuters.com/article/idUSTRE65D40R20100614
Jim Sutliff
Economic reports from China, Japan, and Australia showed accelerating growth and that helped to send stocks higher. Stocks, commodities and the Euro all rallied at the same time as Treasuries declined and gold fell. The S & P 500 index increased 3 % by the end of the day.
To read a related Bloomberg article, please click here:
http://www.bloomberg.com/apps/news?pid=20601010&sid=aYeNQDkGQp0Y
Jim Sutliff
John Dorfman outlines four stocks that he believes to be undervalued and that are trading below book value. Dorfman writes articles for Bloomberg and is also chairman of Thunderstorm Capital. One of his favorite selections is Loews Corp which has CNA Financial and Diamond Offshore Drilling as subsidiaries.
To read the Bloomberg article, please click here:
http://www.bloomberg.com/apps/news?pid=20601039&sid=avToSnEL7Aqc
Jim Sutliff
Businessweek has an article on the fall and rise of REIT investing and makes the case for real estate investments. The article mentions that finance markets are working better now than a year ago and that commercial real estate already took a hit and bounced back. Some of the REITs mentioned are Avalon Bay, Simon Property, and Starwood.
To read the Businessweek article, please click here:
http://www.businessweek.com/magazine/content/10_24/b4182088715429.htm
James Sutliff
At least one analyst is suggesting to purchase gulf coast bonds when the pirces start to drop. The oil leak will cause the surronding economies to take a hit and the bonds may follow in line. One analyst believes that that is a good time to purchase the bonds and receive a solid return.
To read a related Bloomberg article, please click here:
http://www.bloomberg.com/apps/news?pid=20601039&sid=aoxa5Y4U9uiU
Jim Sutliff
Investing in movies can be very risky but it still draws a great deal of interest. For some investors, the value of calling yourself a movie investor can overcome the risks associated with the business. The Wall Street Journal has a great article on this lesser known investment vehicle. It even briefly discusses the tax credits that can help finance the ventures.
To read the Wall Street Journal article, please click here:
Jim Sutliff
A downgrade of Spain by Fitch sent the markets lower before the holiday weekend. Concerns over the spread of the European debt crisis have continued and the prospects of lower global demand also contributed to market problems. The government of Spain has passed a number of austerity measures but that still did not prevent the downgrade by Fitch.
To read a CBS Marketwatch article, please click here:
http://www.marketwatch.com/story/us-stocks-falter-on-flat-consumer-spending-2010-05-28
Jim Sutliff
Reuters reports that Barclays Private Equity will spin out through an MBO over the summer. Barclays is also reported as targeting it’s first independent fund at 1.5 to 2 billion Euros. Regulatory pressures may also be at work in the decision to spin out from the bank.
To read the Reuters article, please click here:
http://www.reuters.com/article/idUSLDE64K0UE20100524
Jim Sutliff
Concerns over sovereign debt and a breakup of the Euro continue to plague banks in Europe. It has been reported that rates on commercial debt are also rising as a result of the crisis.
To read a related Bloomberg article, please click here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aW6jZlK2SYSw&pos=3
James Sutliff
