Investment Markets Overview—W/E 15th August 2014

It was a month ago this week that Portugal’s Banco Espirito Santo SA jolted global markets when it missed short-term debt payments and shares in Espirito Santo fell 17 percent in days as investors’ rushed to the exit door on concerns that financial problems within the Espirito Santo group were understated, despite the “reassurance on containment,” by policymakers including the Central Bank and the regulators. Investors’ were correct to bail -out (excuse the pun,) as less than a week later the group filed for protection from its creditors with liabilities far higher than first suggested. That said, the share price had already slumped by 90% since its March 2014 high and by 99% since its 2007 all-time high, when BES’s destruction was sown by it amassing far too much debt for acquisitions. This week it was African Bank Investments Ltd turn to have its shares suspended and to be “rescued,” by the South African Reserve Bank, after its share price collapsed by 95% over the previous week and by 99% from its more recent all-time high of April 2012. African Bank’s troubles apparently stemmed from its Rand 9.2BN acquisition of a furniture business back in 2008, which prompted losses and write-downs after sales fell, which is hardly surprising given the very high consumer debt levels within SA. We may learn of the full situation at leisure but the real moral of these two events are that most half-decent chartists would have recommended an exit from these companies way before the “news hit the fan.”

15 August 14

Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

The George Clooney of the Central Banking world, Charmer Carney, was on parade this week   …..

Charts:
1.Indices Weekly
2.US Consumer Confidence V S&P 500 Stock-Index
3.E-Z GDP V German GDP
4.Japan M3 MS V Japan GDP
5.Commodity 1 Week Moves

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

Just who regulates the Regulators?

Click Here to view Details of the full version of this Newsletter which includes full text and detailed Charts for each section

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