FLGS – Global Finance Report

Is there a relationship with the movement of a soccer tournament in the stock market index? Apparently there! The brokers and fund managers simply do not see soccer mere spectacle.

The result of the match of a country in a grand football tournament like the World Cup could affect the movement of stock indices in the country. This is the result of Diego Garcia, a finance professor at the University of North Carolina, United States, in the year 2007.

Keith Wirtz, Chief Investment Officer of Fifth Third Asset Management Inc., said, Garcia still relevant research for the 2010 World Cup in South Africa (South Africa). If a country was thrown from the tournament in the early rounds, the index in such countries tend to need longer time to climb back, and vice versa.

The results of this study also states, bearish market conditions will override the 31 participants from 32 countries the World Cup. ‘When a country teams eliminated in the second half of this championship, the country’s stock index fell 0.49 percent the previous closing value. Create states that consider football as important, the failure will affect larger, “wrote Garcia.

Unfortunately, this study did not show the effects of a country’s victory against its index. However, Wirtz predict the euphoria of victory would make investors more confident to buy shares. The reason is, people will feel happy and will be spending more shares when the country won. “That’s what helps the economy. Index higher share of line with profits,” said Wirtz

Blessing the World Cup

Blessing the World Cup in 2010 against the world’s stock markets are awaited. Since April, the debt crisis in Europe and credit restrictions in China have cut off money in the stock market worth six trillion U.S. dollars. These two events have slowed global economic recovery.

In line with this research, the Managing Director of Bedlam Asset Management in London, England, Jon Compton guess would put investors bearish on the stock position of South Africa to see the possible results of this team in the World Cup. “Attention to the South African people disappear and re-investment dries up,” said Compton.

To organize this event, South Africa spent 5.6 billion U.S. dollars. This money to build and renovate the stadium and improve the transportation and telecommunications infrastructure.

Compton added that the economic downturn that would befall South Africa also experienced all the international event organizers. He predicted the economic downturn will run for six months post-termination events.

However, Bloomberg columnist Matthew Lynn argues, the possibility of flagging South African economy is still fifty-fifty. When the tournament was a success, not only South Africa, the economy of all African countries would be bright. Investors will note that African countries are capable of organizing a global event in a way that a modern and chic. “This success would bring investor interest throughout Africa,” said Lynn.

Lynn offers investors refer to the World Cup. When the Spanish champions, he recommends investors buy the euro. The reason, the weak point of this currency in Spain. As the European credit crisis, the EU is still able to bail out of Greece and Portugal, but not for Spain that are too big. “Winning the World Cup premiere in Spain could save the euro,” he said.

Conversely, when Germany became champions, Lynn requested the investors to sell euros. Tim “Panzer” in the event this time is not the best team in the history of Germany. When you win, it means this team simply relies on discipline, hard work and cooperation. Related to the European crisis, they were probably reluctant to tighten the economy for the Mediterranean countries.

If Brazil win their sixth trophy, Lynn mernpersilakan investors buy all the investment products from Brazil, Russia, India and China. Brazil Victory will remind the world at the owners of energy.

- Stocks on Wall Street ended almost flat on Wednesday (06/16/2010) local time (Thursday morning GMT), amid U.S. economic data are varied, new fears of European debt and BP agreement to memeberikan 20 billion U.S. dollar fund for victims of the Gulf of Mexico oil disaster.

Dow Jones Industrial Average rose 4.60 points (0.05 percent) to 10409.46, trimming earlier losses. The Nasdaq technology index rose a thin 0.05 points (0.00 percent) to 2305.93, while the S & P 500 index, a broader measure of Pasa, slightly down 0.62 points (0.06 percent) to 1114.61.

The atmosphere on Wall Street “be careful” because investors digesting “the weaker economic data and fears of new debt in European countries,” Briefing.com analysts said in a note to clients.

Monthly data of the construction of new housing units (housing starts) and the U.S. building permits fell in May, after the expiration of termination of federal taxes, the Ministry of Commerce said in a report worse than expected for the housing sector.

The number of new housing construction projects dropped 10 percent to 593 000, its lowest level this year, and permits fell 5.9 percent to as low as one year at 574 000.

Federal Reserve (Fed) ebih reported stronger than expected U.S. industrial production data for May, while the Labor Department said producer prices fell in May for the second month in a row, directly reduce inflation worries.

Also received positive market sentiment, after BP agreed to pay 20 billion dollars into the fund (fund) to meet the growing oil spill claims for U.S. President Barack Obama obtained a major concession from the company boss in talks at high risk.

Dow and Nasdaq “rebounding” (turned up) on the announcement, and appeared “to ease investor uncertainty,” said Wells Fargo chief market strategy Advisors, Al Goldman.

BP shares listed in New York ended 1.43 percent higher at 31.85 dollars.

Chairman Carl-Henric Svanberg BP said the company would stop shareholder dividends for the rest of the year because the battle to save his reputation after a major oil pollution.

BP also will sell assets worth 10 billion U.S. dollar this year amid rising costs to cope with oil spills, a company official said.

Euro back down after it was strengthened. Until this afternoon, the euro’s position has been perched at 1.2379 dollars per euro, down 0.01 percent from yesterday’s position at 1.2389 at 13:40 pm.

Analyst Marc Chandler in New York told Bloomberg rate euro rally is now a phase of improvement in a bearish market and not a change in trend. He estimates, for the medium term would be more weakened market (bearish), but the weakening of the euro to slow.

Earlier the euro had strengthened to a level of 1.2441 U.S. dollars. A stronger exchange rate of the European Union along with the ease European fears of debt crisis. This is marked by surging demand for Spanish bond auction.

Strengthening of the euro also due to the U.S. dollar which letoi. The trigger, a regional index of manufacturing industry in the U.S. declined from 21.4 to 8 this month. Besides news in the U.S. the number of unemployed rose by 12,000 to a total of 472 000 per week ago to make U.S. dollars more severe measures

Visitors looking for information about franchise opportunities at franchise exhibition at Balai Kartini, Jakarta, Sunday (7 / 3). Franchises become one option for some people to enter the business world because they do not need to pioneer the business from scratch.
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JAKARTA, KOMPAS.com – Business franchise is still a business sector that has promising prospects in the middle of the tidal dynamics of the trade. According to Education Commissioner Indonesian Franchise Association (AFI) Erwin Halim, food and beverage businesses still dominate franchise business in Indonesia today.

“Various business food and beverage franchise has become a trend from last year, and estimates for next year are still going to be the most preferred business” said Erwin told Kompas.com, on the sidelines of the International Franchise, License, Businnes Concept Expo (IFRA) 2010, at the Jakarta Convention Centre (JCC), Senayan, Jakarta, Sunday (20/06/2010).

Overall, according to Erwin, the franchise does have good prospects for communities who want to open my own business. With variations to capital from low to high, a variety of franchise businesses can reach their prospective business partners. “It’s very promising. The cycle of money in a franchise business is also very significant,” he said.

For beginners who want to start a franchise business, Erwin also suggested to start with the food or beverage business. In addition to high demand, initial capital for the food and beverage business is still very affordable for middle-economic people.

Erwin opinion is in tune with the dynamics of the IFRA 2010 in JCC. Kompas.com watchlist, booth franchise business operating in the food and beverage business type high enough enthusiasts. Various foods and beverages from various processed materials sought by the visitors busy.

Purnomo (28), a visitor of the exhibition said that plans to open a franchise business. Food sector is also attracting a man who also worked as private employees. “For a side. Because it can also open employment opportunities for my relatives. Now it’s really the best foods business prospects,” he said.

Head of Investment Coordinating Board (BKPM) Gita Wirjawan justify the additional investment plan of Wilmar International, which became a holding of PT Wilmar Bio Group. Wilmar plans to increase its investment worth two billion U.S. dollars in Indonesia.

This was conveyed Gita in the office of Coordinating Minister for Economy, Monday (06/21/2010). Figures 20 billion U.S. dollar investment plan that is across Indonesia and is currently in discussion phase. Wilmar Moreover, he continued, still in a position where cash-rich large categorized their cash capital.

Gita says Wilmar will continue to invest in oil palm plantations as long as it did in North Sumatra. “But they also looked at the Merauke yesterday for investing in agriculture, that is one consideration,” he said.

Specific investment plans in Merauke, Gita says is still in discussion stage. However, in his opinion, the potential investment is worth at least $ 10 billion is large enough.