International News (Issue 380) – 3 December 2015



International News (Issue 380) – 3 December 2015


So this week there is a lot to cover, unlike the last.


We can start with the US this week.


The big Black Friday Thanksgiving sales period was a bit hit-and-miss, and certainly didn’t pack the momentum we saw in recent years. Amazon (AMZN) was the clear winner, as the one apparent theme to come from the period was the continue migration from bricks-and-mortar to online.


Fascinatingly on AMZN it has just introduced a new online grocery services in the UK market, aimed at delivering non-perishable (and some chilled) items to clients of their Amazon Prime service.


I have to say, not a day goes past when I don’t marvel at the new and varied services the likes of AMZN, Google (GOOG) & Apple (AAPL) are getting themselves into through their revolutionary business models.


In China this week we saw the release of November manufacturing data, which quite frankly is becoming more of a yawn than ever. Given much of northern China is about to be covered in a heavy blanket of snow, don’t expect any uptick in industrial activity until at least February.


The Chinese currency has softened up in recent weeks which is something to pay attention to. Most brokers expect a further interest rate and bank reserve requirement cut before Christmas, which will hopefully assist the financial system in the lead up to January’s Chinese New Year holiday period.


It’s worth watching the Chinese Yuan, lest it weaken further, particularly since this was the perceived initial catalyst for the broader investment market sell-off witness in August and September.


Lastly in China, it is worthwhile acknowledging the huge jump in property development shares this week. Chinese largest developer, China Vanke (000002 CH) rose 30% this week on little concrete news-flow other than the continued stabilization in Chinese property prices.


There were rumours suggesting the Chinese government may allow tax offsets against mortgage lending (negative gearing), but this was denied (and seems unlikely).


What is factual and undeniably positive, is that the property shares are running and property prices are not falling. For all the doubting Thomas’ on the Chinese property market, the recent evidence is hardly supportive of the Armageddon scenario.



This information has been prepared by Primestock Securities Limited ABN 67 089 676 068, AFSL 239180 (“Prime”). Prime accepts no obligation to correct or update the information or opinions in it. This information does not take into account your objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate to your situation. It is recommended that you obtain financial, legal and taxation advice before making any financial investment decision. Prime is bound by the Australian Privacy Principles for the handling of personal information.

By | 2017-06-16T15:16:27+11:00 December 3rd, 2015|International News, Weekly Market Update|0 Comments

About the Author:

Prime is an Integrated Wealth Management Firm for business owners and family groups. Prime’s goal is to become the Premier Partner to Accountants for Growth, Succession and Integrated Wealth Management and to deliver personalised advice to clients for a secure financial future.