Issue link: https://maltatoday.uberflip.com/i/358967
maltatoday, WEDNESDAY, 6 AuguSt 2014 11 Business Today Money Market Report for the week ending August 1, 2014 Exchange Rates Issue Date: 05-Aug-14 Set: 1 Issue Time: 07:33:22 Value Date: 07/08/2014 Currency Cash Cash Non-Cash Non-Cash Revaluation Buying Selling Selling Buying British Pound (GBP) 0.8306 0.7719 0.7799 0.8117 0.7958 United States Dollar (USD) 1.4009 1.3019 1.3154 1.3690 1.3422 Swiss Franc (CHF) 1.2703 1.1806 1.1928 1.2414 1.2171 Australian Dollar (AUD) 1.5002 1.3942 1.4086 1.4660 1.4373 Canadian Dollar (CAD) 1.5292 1.4211 1.4358 1.4944 1.4651 Japanese Yen (JPY) 143.5700 133.4235 134.7990 140.3010 137.5500 Danish Krone (DKK) 7.7900 7.2400 7.3100 7.6100 7.4600 Swedish Kronor (SEK) 9.6400 8.9600 9.0600 9.4200 9.2400 Hong Kong Dollar (HKD) 10.8570 10.0898 10.1939 10.6099 10.4019 Norwegian Krone (NOK) 8.7800 8.1600 8.2400 8.5800 8.4100 New Zealand Dollar (NZD) 1.6438 1.5277 1.5434 1.6064 1.5749 Singapore Dollar (SGD) 1.7437 1.6205 1.6372 1.7040 1.6706 South African Rand (ZAR) 14.9338 13.8786 14.0216 14.5940 14.3078 Czech Koruna (CZK) 28.8600 26.8200 27.0931 28.1989 27.6460 Polish Zloty (PLN) 4.3600 4.0500 4.0891 4.2561 4.1726 Hungarian Forint (HUF) 344.8276 294.6723 307.2102 319.7544 313.4796 Moroccan Dirham (MAD) 12.3310 10.5374 ********* ********* 11.2100 Tunisian Dinar (TND) 2.4000 2.2300 2.2544 2.3464 2.3004 United Arab Emirates Dirham (AED) 5.4227 4.6339 4.8311 5.0283 4.9297 Bahraini Dinar (BHD) 0.5566 0.4756 ********* ********* 0.5060 Gibraltar Pound (GIP) 0.8749 0.7477 ********* ********* 0.7954 Israeli New Sheqel (ILS) 5.0356 4.3031 ********* ********* 4.5778 Kuwaiti Dinar (KWD) 0.4181 0.3573 ********* ********* 0.3801 Saudi Riyal (SAR) 5.5371 4.7317 ********* ********* 5.0337 Turkish New Lira (TRY) ********* ********* 2.8010 2.9154 2.8582 Thailand BAHT (THB) ********* ********* 42.1754 43.8968 43.0361 Chinese Renminbi (CNY Onshore) ********* ********* 8.1220 8.4536 8.2878 Chinese Renminbi (CNH Offshore) ********* ********* 8.1186 8.4500 8.2843 All Chinese Renminbi transactions, irrespective of amounts, are to be referred to Branches or Treasury. Rates shown here are indicative only and are subject to change without notice. The final exchange rate offered by the bank /applied to your transaction may vary from the rate indicated here. Our staff at the Branches or Treasury will be pleased to provide you with exchange rates for your specific transactions. The rates quoted above are against the euro. 20.17 20.25 1290.76 1291.53 US Dollars per TROY ounce Value Date Currency Same Day EUR/GBP/USD/CAD SILVER GOLD D + 1 SEPA payments and payments sent to countries and in the currencies regulated by the Payments Services Directive (PSD) D + 2 All Other Currencies PUBLIC Your first click of the daY www.maltatoday.com.mt Regular market closed – 29/07/2014 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap t BOV 18108 37840.540 9 2.100 2.080 2.100 2.080 -0.012 2.090 s GO 5000 11900.000 1 2.380 2.380 2.380 2.380 0.020 2.380 t HSB 2000 4002.000 1 2.001 2.001 2.001 2.001 -0.003 2.001 l MIA 3800 8740.000 4 2.300 2.300 2.300 2.300 0.000 2.300 l MSI 86 74.820 1 0.870 0.870 0.870 0.870 0.000 0.870 l MTP 2899 3196.220 2 1.120 1.100 1.100 1.120 0.000 1.103 l RS2 54662 139285.700 3 2.550 2.500 2.500 2.550 0.000 2.548 t SFC 417 1188.450 1 2.850 2.850 2.850 2.850 -0.100 2.850 t G14B 18880 19229.280 3 101.850 101.850 101.850 101.850 -0.030 101.850 t G15B 5358 5697.160 1 106.330 106.330 106.330 106.330 -0.010 106.330 s G16A 7920 8711.210 1 109.990 109.990 109.990 109.990 0.010 109.990 s G16B 11181 12255.490 1 109.610 109.610 109.610 109.610 0.030 109.610 s G17C 75000 83317.500 6 111.090 111.090 111.090 111.090 0.050 111.090 s G18A 6057 7657.260 1 126.420 126.420 126.420 126.420 0.060 126.420 s G19A 47287 59444.490 1 125.710 125.710 125.710 125.710 0.180 125.710 s G20B 30000 34998.500 3 116.670 116.660 116.670 116.660 0.130 116.660 s G21A 54422 65475.120 3 120.310 120.310 120.310 120.310 0.090 120.310 t G22B 110500 127649.600 4 115.520 115.520 115.520 115.520 -0.050 115.520 s G23A 8153 10207.560 1 125.200 125.200 125.200 125.200 0.050 125.200 s G28B 275200 310289.960 8 112.780 112.650 112.650 112.740 0.130 112.750 s G30A 5075000 6109725.000 3 120.390 120.300 120.390 120.300 0.140 120.390 s G31A 40000 47300.000 2 118.250 118.250 118.250 118.250 0.090 118.250 s G32A 95000 104513.000 5 110.020 110.000 110.000 110.020 0.070 110.010 s G32BA 243100 260601.400 8 107.200 107.170 107.170 107.200 0.080 107.200 s AX24A 20300 21263.550 6 105.000 104.510 104.510 105.000 0.990 104.750 l BV18A 10000 10502.000 1 105.020 105.020 105.020 105.020 0.000 105.020 l BV19A 14100 14912.160 1 105.760 105.760 105.760 105.760 0.000 105.760 l BV19B 15000 15391.500 1 102.610 102.610 102.610 102.610 0.000 102.610 l GF21A 9000 9144.900 2 101.610 101.610 101.610 101.610 0.000 101.610 s IG24A 31900 33864.380 4 106.460 106.020 106.020 106.460 0.440 106.160 s MF24A 40700 41804.300 4 102.750 102.700 102.700 102.750 0.170 102.710 t MI15A 10000 9600.000 1 96.000 96.000 96.000 96.000 -2.000 96.000 l MI17A 4000 3960.000 1 99.000 99.000 99.000 99.000 0.000 99.000 ECB decisions On Tuesday, July 29, the European Central Bank (ECB) published the legal act relating to the targeted longer-term refinancing operations (TLTROs). The TLTROs are designed to enhance the functioning of the monetary policy transmission mechanism by supporting lending to the real economy. ECB Monetary Operations On Monday, July 28, the ECB announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, July 29, and attracted bids from euro area eligible counterparties of €133.30 billion, €35.42 billion higher than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.15%, in accordance with current ECB policy. On Wednesday, July 30, the ECB conducted a three- month longer- term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation. The auction attracted bids of €6.79 billion from euro area eligible counterparties, which amount was allotted in full in accordance with current ECB policy. Also on Wednesday, July 30, the ECB conducted a seven- day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted one bid of $0.08 billion, which was allotted in full at a fixed rate of 0.59%. Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills maturing on October 31, 2014. Bids of €50.00 million were submitted for the 91-day bills, with the Treasury accepting €15.00 million. Since €35.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €20.50 million, to stand at €386.57 million. The yield from the 91-day bill auction was 0.280%, i.e. 1.40 basis points lower than on bills with a similar tenor issued on July 25, 2014, representing a bid price of 99.9293 per 100 nominal. During the week under review, there was no trading on the Malta Stock Exchange. On Tuesday the Treasury invited tenders for 28-day and 182-day bills maturing on September 5, 2014 and February 6, 2015, respectively. ECB shows it does not react to short-term developments Much has been said in recent weeks about the divergence and different stages of the economic cycle and sub- sequent recovery that exists between the US and the Eurozone. The thesis that US continues to be well ahead of its counterpart across the Atlantic is expected to be further accentuated as July economic numbers get published. Eurozone July provisional CPI inflation came in at 0.4% y-o-y, short of what the market and, more importantly, the ECB had expected. ECB's Mario Draghi will have to address at this week's (Thursday 7 August) press conference whether this low print justifies additional ECB action. It is clear that significant parts of the ECB's comprehensive June package have yet to be implemented, and the ECB has shown that it does not react to short-term developments, but sets policy for the medium to long term. A point worth mentioning is the weaker euro, trading below 1.34, after June staff projections had projected a 1.38 level. This should also set the tone of Draghi's ECB speech later on this week. Draghi will also have to tackle the impact of the step up in sanctions on Russia as the EU has reportedly calculated that these could negatively impact the region's GDP by 0.3% in 2014 and 0.4% in 2015, having the potential to put the eurozone back in recession if the situation escalates and there are eventual disruptions to Europe's gas supply. Meanwhile, in the US, the most recent FOMC statement has taken on a more hawkish tone in light of recent inflationary numbers, as the committee acknowledged that inflation had "moved somewhat closer to the Committee's longer-run objective", prompting it to remove its previous statement that an inflation rate persistently below 2% could pose risks to economic performance. What this means is that if inflation remains elevated it will no longer be seen as an obstacle to rate hikes, as it could signify that the real economy is moving in the right direction. On the labour market, the FOMC judged conditions to have improved whilst second-quarter US GDP growth of 4% - signals that the first-half GDP picture now looks better than before. This week, we await strong ISM prints, factory orders and the Michigan confidence survey, which data will give us a better glimpse on the US economy's footing. In Latam, price pressures are expected to be on the increase this week as inflation numbers in Mexico and Brazil take centre stage. While this implies a relatively un-worrying 4.0% figure in Mexico, a 6.6% print for Brazil could be disturbing for its economy as Brazil has been forced to hike rates this year. Meanwhile, Brazil's October presidential election looks set to be a tight one and too close to call for the time being, with the gap between those who would vote for incumbent President Dilma Rousseff (44%) in a second-round run-off has narrowed yet again, with many analysts expecting this one to go down to the wire. This article was issued by Calamatta Cuschieri, visit www.cc.com.mt for more information. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.