Issue link: https://maltatoday.uberflip.com/i/394213
maltatoday, WEDNESDAY, 8 OCTOBER 2014 11 Business Today www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way Money Market Report for the week ending October 3, 2014 Exchange Rates Issue Date: 07-Oct-14 Set: 2 Issue Time: 14:44:00 Value Date: 09/10/2014 Currency Cash Cash Non-Cash Non-Cash Revaluation Buying Selling Selling Buying British Pound (GBP) 0.8188 0.7610 0.7649 0.8041 0.7845 United States Dollar (USD) 1.3179 1.2248 1.2311 1.2943 1.2627 Swiss Franc (CHF) 1.2647 1.1753 1.1814 1.2420 1.2117 Australian Dollar (AUD) 1.4955 1.3898 1.3970 1.4686 1.4328 Canadian Dollar (CAD) 1.4713 1.3673 1.3744 1.4448 1.4096 Japanese Yen (JPY) 142.7900 132.6960 133.3800 140.2200 136.8000 Danish Krone (DKK) 7.7700 7.2200 7.2500 7.6300 7.4400 Swedish Kronor (SEK) 9.4700 8.8000 8.8400 9.3000 9.0700 Hong Kong Dollar (HKD) 10.2209 9.4987 9.5477 10.0373 9.7925 Norwegian Krone (NOK) 8.5300 7.9200 7.9700 8.3700 8.1700 New Zealand Dollar (NZD) 1.6788 1.5601 1.5682 1.6486 1.6084 Singapore Dollar (SGD) 1.6827 1.5638 1.5719 1.6525 1.6122 South African Rand (ZAR) 14.7733 13.7295 13.8002 14.5080 14.1541 Czech Koruna (CZK) 28.6700 26.6500 26.7862 28.1598 27.4730 Polish Zloty (PLN) 4.3700 4.0600 4.0788 4.2880 4.1834 Hungarian Forint (HUF) 338.8337 289.5529 300.3364 315.7363 308.0335 Moroccan Dirham (MAD) 12.1880 10.4152 ********* ********* 11.0800 Tunisian Dinar (TND) 2.3700 2.2100 2.2176 2.3314 2.2745 United Arab Emirates Dirham (AED) 5.1016 4.3595 4.5219 4.7537 4.6378 Bahraini Dinar (BHD) 0.5237 0.4475 ********* ********* 0.4761 Gibraltar Pound (GIP) 0.8628 0.7373 ********* ********* 0.7844 Israeli New Sheqel (ILS) 5.1612 4.4105 ********* ********* 4.6920 Kuwaiti Dinar (KWD) 0.4007 0.3424 ********* ********* 0.3643 Saudi Riyal (SAR) 5.2106 4.4527 ********* ********* 4.7369 Turkish New Lira (TRY) ********* ********* 2.7961 2.9395 2.8678 Thailand BAHT (THB) ********* ********* 40.1413 42.2000 41.1706 Chinese Renminbi (CNY Onshore) ********* ********* 7.5577 7.9453 7.7515 Chinese Renminbi (CNH Offshore) ********* ********* 7.5701 7.9583 7.7642 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. 17.32 17.37 1206.65 1207.05 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 US Dollars per TROY ounce Value Date Currency Same Day EUR/GBP/USD/CAD SILVER GOLD PUBLIC Regular market closed –07/10/2014 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap ● BOV 12512 28302.000 4 2.265 2.250 2.265 2.250 0.000 2.262 ▲ GO 1571 4067.400 3 2.590 2.589 2.589 2.590 0.001 2.589 ▼ HSB 13400 26550.400 6 2.001 1.980 2.001 1.980 -0.020 1.981 ▼ G14B 2330 2347.240 1 100.740 100.740 100.740 100.740 -0.290 100.740 ▲ G15B 100000 105690.000 1 105.690 105.690 105.690 105.690 0.010 105.690 ▲ G17C 30000 33420.000 1 111.400 111.400 111.400 111.400 0.010 111.400 ▲ G20B 20000 23614.000 1 118.070 118.070 118.070 118.070 0.050 118.070 ▲ G21A 55387 67771.530 2 122.360 122.360 122.360 122.360 0.070 122.360 ▲ G22A 11647 14437.620 1 123.960 123.960 123.960 123.960 0.100 123.960 ▲ G23A 16306 20901.030 1 128.180 128.180 128.180 128.180 0.080 128.180 ▼ G28B 105000 125465.000 6 119.500 119.450 119.500 119.450 -0.190 119.490 ▼ G30A 1500 1905.900 1 127.060 127.060 127.060 127.060 -0.070 127.060 ▼ G31A 3500 4384.450 1 125.270 125.270 125.270 125.270 -0.090 125.270 ▼ G32B 45000 51354.000 6 114.120 114.120 114.120 114.120 -0.100 114.120 ▼ G33A 220600 245792.520 9 111.420 111.420 111.420 111.420 -0.170 111.420 ▼ G34AA 632100 687209.830 19 108.760 108.690 108.750 108.690 -0.200 108.720 ● AX24A 9000 9562.500 1 106.250 106.250 106.250 106.250 0.000 106.250 ● BV20A 20000 20922.000 2 104.610 104.610 104.610 104.610 0.000 104.610 ● CF19A 5000 5175.000 1 103.500 103.500 103.500 103.500 0.000 103.500 ▲ GC16A 12200 11662.000 3 96.000 95.000 95.000 96.000 2.000 95.590 ▲ MB19A 21000 22008.000 1 104.800 104.800 104.800 104.800 0.050 104.800 ● MI15A 3500 3342.850 1 95.510 95.510 95.510 95.510 0.000 95.510 ● MI17A 8000 7520.000 2 94.000 94.000 94.000 94.000 0.000 94.000 ▼ MI17C 4000 3938.000 1 98.450 98.450 98.450 98.450 -1.550 98.450 ● MI21A 2000 1954.000 1 97.700 97.700 97.700 97.700 0.000 97.700 ▼ MO19A 5900 6226.270 1 105.530 105.530 105.530 105.530 -1.470 105.530 ▼ MS23A 9900 10490.000 3 106.000 105.750 106.000 105.750 -0.250 105.960 ● PG20A 5400 5644.080 2 104.520 104.520 104.520 104.520 0.000 104.520 ▲ PG22A 5000 5325.000 1 106.500 106.500 106.500 106.500 1.500 106.500 ▼ TI24A 4000 4200.000 2 105.000 105.000 105.000 105.000 -1.250 105.000 ECB decisions On Thursday, October 2, the Governing Council of the European Central Bank (ECB) decided that the interest rate on the main refinancing operations (MRO) and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.20% respectively. Also on Thursday, October 2, the Governing Council of the ECB agreed on key operational details of its new programmes to buy simple and transparent asset-backed securities (ABSs) and a broad portfolio of euro-denominated covered bonds. Together with the targeted longer- term refinancing operations, the purchase programmes will further enhance the transmission of monetary policy. They will facilitate credit provision to the euro area economy, generate a positive spill-over to other markets and, as a result, ease the ECB's monetary policy stance. The following are the details of the new programmes: • the programmes will last at least two years; • they will enhance transmission of monetary policy, support provision of credit to the euro area economy and, as a result, provide further monetary policy accommodation; • the Eurosystem collateral framework is the guiding principle for eligibility of assets for purchase; • the asset purchases will start in fourth quarter of 2014, commencing with covered bonds in the second-half of October. ECB Monetary Operations On Monday, September 29, the ECB announced its weekly MRO. The auction was conducted on Tuesday, September 30, and attracted bids from euro area eligible counterparties of €89.07 billion, €1.23 billion lower 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 0.05%, in accordance with current ECB policy. On Wednesday, October 1, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation was carried out at a fixed rate of 0.58% and did not attract bids from euro area eligible counterparties. Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 91-day bills maturing on October 31, 2014, and January 2, 2015, respectively. Bids of €21.00 million were submitted for the 28-day bills, with the Treasury accepting €11.00 million, while bids of €36.00 million were submitted for the 91-day bills, with the Treasury accepting €24.00 million. Since €26.50 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €8.50 million, to stand at €317.07 million. The yield from the 28-day bill auction was 0.036%, i.e. 16.4 basis points lower than on bills with a similar tenor issued on August 8, 2014, representing a bid price of 99.9972 per 100 nominal. The yield from the 91-day bill auction was 0.090%, i.e. 2.20 basis points higher than on bills with a similar tenor issued on September 26, 2014, representing a bid price of 99.9773 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 bills maturing on November 7, 2014. Last week, markets were in the main driven by mixed economic data signals, both in Europe and in the US, as well as the much anticipated ECB meeting last Thursday. Earlier in the week, US pend- ing home sales, consumer confi dence and ISM manufacturing all surprised to the downside, whilst Eurozone PMIs registered weaker numbers, as infl ation for the single currency region dropped to 0.3% from 0.4%. The ECB left policy rates unchanged and announced no new additional policy measures, which disappointed many market participants. Despite this, a number of economists have their money on the ECB engaging in Fed-style QE, well into 2015. Markets were bolstered in the second part of the week as an unexpected increase in US Nonfarm payrolls coupled with a decline in the unemployment rate to 5.9% boosted US equity markets primarily. Market sentiment last week could have also taken cue from the protests in Hong Kong and the Ebola outbreak, however the economic impact of both issues remain unclear, so far. Data releases yesterday were relatively on the quiet side, but this week we have got quite a number of important numbers to contend with, with money and credit growth data out of China being taking centre stage. We will also be closely monitoring monetary policy decisions in Japan, Australia and the UK, as well as the release of monetary policy minutes in the US and Japan, and Euro area industrial production print later on the week. Within the Emerging Markets space, we have also got monetary policy decisions in Indonesia, Poland and Peru, but the market will, without any doubt, be closely scrutinising exit polls for the second round of Brazilian election and the implications, albeit short term, it could have on the state of the Brazilian economy. In fact, the outcome of the Brazil first round of election came in as expected, with incumbent Dilma Rousseff winning the largest share of the vote, taking 41.6%. However, and this came as a surprise to many, her opponent in the second round, which is scheduled for October 26, will not be Marina Silva but Aecio Neves, who obtained 33.5%, after Marina registered 21% of the votes. Despite the uncertainty regarding the forthcoming second round of elections, the macro outlook remains uncertain because whoever wins, it is evident that there will be no quick-fix to the economy as Brazil faces a flurry of macroeconomic problems. While policy can make a difference in the short term, it will take time to reverse the damage caused over recent years. Hewlett-Packard announced that it plans on separating its personal- computer (PC) and printer businesses from its corporate hardware and services operations in its latest attempt to get the company back on its feet by splitting it into two divisions. This split is expected to be in the form of a tax-free distribution of shares to shareholders in 2015 next year. If everything goes as planned, we would see the formation of two publicly traded companies, each with more than $50 billion in annual revenue. Meanwhile, Walt Disney & Co. rescued its loss-making European subsidiary Euro Disney in the form of a €1bn deal that could give the U.S. group total control over Europe's biggest tourist attraction. The deal, which was announced yesterday morning, includes a rights issue and debt restructuring that will inject as much as €420mn into the Euro Disney group and eliminate €600mn of its debt owed to the parent company Walt Disney by means of an equity swap. 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 newspaper. Market Commentary: Markets take stock of incoming data and Brazil elections