By Ali Abel Sadah for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.
On May 10, 2013, conflicting news reports about Iraqi Prime Minister Nouri al-Maliki suffering from a health problem were rampant in Baghdad, while speculation about what kind differed.
On that day, the Islamic Supreme Council was holding a memorial service on the anniversary of the martyrdom of its former leader, the late Mohammed Baqir al-Hakim. Maliki was supposed to attend the event and deliver a speech.
Hakim was a Shiite leader who stood out in 2003 as one of the most prominent leaders in the opposition to Saddam Hussein’s regime. In 2004, as he emerged from the gold-domed shrine of Imam Ali Ibn Abi Taleb in Najaf, where he was delivering a speech before his supporters, a massive car bomb exploded.
Iraqi leaders made a point of attending the memorial ceremony and delivering emotive speeches to commemorate Hakim. Maliki, however, was absent because of illness. He sent Ali al-Adib, minister of education and prominent leading member of the Dawa Party on his behalf.
At the podium during the ceremony, which was attended by Al-Monitor, Adib delivered a speech attacking the electoral law, dubbed Saint Lego, saying that “it does not achieve compatibility between blocs.”
The electoral system that was amended last year by the Iraqi parliament has helped minor blocs to achieve electoral gains. The Supreme Council, in addition, benefited from this system during the last provincial elections of April 2013.
Iraq Business News
The Japanese yen gained yesterday and extended its rally today as some Japan’s politicians were speculating that the recent huge drop of the currency was overdone. The yen was also strong on negative fundamental reports from the United States and Europe.
Japanese Economics Minister Akira Amari warned that the weakness of the yen may be not entirely positive for Japan’s economy. Amari said yesterday:
If the yen excessively weakens, this would cause a spike in import prices. It would be a benefit for exports, but would have harmful effects on people’s livelihoods.
Such comments spurred talks that the depreciation of the Japanese currency will be limited.
Some negative data added risk premium to the yen. The German economy shrank 0.5 percent in the fourth quarter of 2012 from the previous quarter. The Empire State Manufacturing Index was almost unchanged at -7.8 this month, still indicating a decline of the sector, while analysts have anticipated an improvement to 1.9.
USD/JPY dropped from 88.78 to 88.33 as of 2:57 GMT today and its intraday low was at 88.04. EUR/JPY declined from 118.10 to 117.34 and GBP/JPY went down from 142.61 to 141.87.
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Forex News
The Japanese yen continued its rally as risk aversion returned to the Forex market and on speculations that the huge decline, which the currency has experienced by the end of the last year, was overdone.
The yen has started its drop down against most currencies in the middle of November and moved down almost without pause till the beginning of this year. The currency has lost about 5 to 7 percent of its value just in the last few weeks. Market participants started to speculate that the decline was excessive and all the bad news was already priced in. If such view holds, the yen may continue to rise over the next several days regardless of news.
Additionally, the Japanese currency got support from its role as a safe haven. Traders were somewhat fearful recently and feel uncertain ahead of policy meetings that several central banks (including the European Central Bank) will hold this week.
USD/JPY traded at about 87.05 as of 00:37 GMT today following the drop from 87.77 to 87.03 yesterday. EUR/JPY was near the yesterday’s close of 113.83 after tumbling from 115.12. GBP/JPY slid from 141.44 to 139.73 and remained near that level today.
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Forex News
Canadian dollar is getting a boost today, rising as Forex traders await the next interest rate announcement from the Bank of Canada.
The Bank of Canada is expected to leave its key benchmark at one per cent, and there isn’t expected to be any big news about future intentions for the rate. Indeed, some think that there won’t be any change in Canadian rate for at least another 12 months.
This holding steady in the face of global economic weakness is helping the loonie a little bit. The Canadian economy is considered to be one of the better performing economies since the 2008 financial crisis, and that is giving the loonie an edge.
Canadian dollar is also getting help, particularly against the US dollar, as risk appetite makes a small appearance. Emerging markets are getting a boost today, and that helps commodity currencies like the loonie. Additionally, the Canadian dollar is still getting a little help from its new official status as a reserve currency, something the IMF is promoting at the beginning of 2013.
At 14:20 GMT USD/CAD is down to 0.9927 from the open at 0.9951. GBP/CAD is also a little bit lower, dropping to 1.6000 from the open at 1.6012. EUR/CAD is a little higher, though, rising to 1.2998 from the open at 1.2986.
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Forex News
The Canadian dollar climbed against most major currencies as the slowing growth in China spurred speculations that the policy makers in the Asian nation would step up to boost the economic expansion. The currency reached the record high versus the euro.
China’s gross domestic product expanded 7.6 percent in the second quarter of this year, somewhat below the expectations of a 7.7 increase. The expansion in the preceding quarter was 8.1 percent. The slowdown spurred speculations that China may stimulate the economy, helping riskier assets. Yet some analysts say that the growth figure was above worst forecasts and may be not enough to spur the Chinese authorities into action.
Whatever the futures hold, traders were certainly optimistic about it. The Thomson Reuters/Jefferies CRB Index, which tracks 24 commodities, climbed 1.3 percent yesterday. The Standard & Poor’s 500 Index added as much as 1.7 percent.
EUR/CAD fell from 1.2432 to close at 1.2415 and it reached the record low of 1.2376 intraday. USD/CAD fell from 1.0191 to 1.0136. CAD/JPY closed at 78.07, up from the opening of 77.78.
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Forex News
By John Lee.
Shares in Afren, the U.K.-based oil and gas company with operations in Iraqi Kurdistan, gave up some of their recent gains on Wednesday, but were still nearly 10% up on Monday’s intra-day low on speculation of a takeover offer.
According to This is Money, rumours were rife that Italy’s ENI, and Exxon Mobil of US, the world’s largest energy company, are both considering an acquisition of the firm. Either one could launch a bid in the region of £2.15bn cash or £2-plus a share, it speculated.
Malcolm Graham-Wood, of VSA Capital, says the company has a good mix of production and exploration, and offers exposure to some of the most exciting prospective areas in the world.
Currently trading at 113p, over the past year the shares have as low as 73p (October) and hit a high of 150p in April.
(Picture: Afren’s Barda Rash operations)
Iraq Business News
The Swiss franc fell after a spike of the EUR/USD currency pair lead to speculations that the Swiss National Bank may take additional measures to erode the role of the franc as a safe haven.
Yesterday, for a short time, EUR/USD climbed to the highest level since March. The currency pair quickly pulled back, but that was enough to spur talks about another intervention by the SNB. There were rumors that the central bank plans to introduce a tax on deposit. Government and the bank’s officials refused to comment the speculations. Some economists say that the spike was likely caused just by some bank selling euros.
The SNB introduced the 1.20 cap on the franc against the euro in September last year. Since then, the Swiss currency was steadily appreciating, but stopped near the ceiling, breaking it only once. The franc was declining versus the dollar and the yen since April.
EUR/CHF traded at 1.2017 as of 00:20 GMT today after it climbed yesterday as high as 1.2074. USD/CHF jumped from 0.9542 to 0.9584 yesterday and stayed near that level today. CHF/JPY traded at about 83.10 at today’s trading session after falling from 83.24 to 83.01 on the yesterday’s trading session.
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Forex News
Shares on Gulf Keystone Petroleum gained 7.6% on Thusday following the company’s response to speculation:
Gulf Keystone notes the continued and unfounded speculation on various bulletin boards and other social media sites regarding an alleged planned placing of the Company’s shares at 160p per share.
Gulf Keystone does not normally comment on such unfounded speculation. However, due to the damaging and misleading nature of these various comments which have been posted on bulletin boards and other social media sites during the past 24 hours, the Company feels it must respond.
Accordingly, Gulf Keystone is pleased to confirm categorically that it has no current intention of undertaking an institutional fundraising.
The Company is also pleased to confirm that the process regarding the sale of its 20% stake in the Akri-Bijeel block in the Kurdistan Region of Iraq, is continuing and negotiations are ongoing with several interested bidders. The Company will issue further updates as appropriate.
The Company is currently taking legal advice with regard to the continued and unfounded speculation on various bulletin boards and other social media sites and will be taking all available legal action to prevent further repetition of similar speculative comments on bulletin boards and other social media sites.
Todd Kozel (pictured), Executive Chairman and Chief Executive Officer, commented:
“We are working hard to create shareholder value via the continuing 2012/2013 exploration and appraisal programme on our world-class assets in the Kurdistan Region of Iraq. We will not tolerate malicious attempts to damage the Company’s reputation and share price. We have instructed the Company’s lawyers to use all means necessary to protect our shareholders from this malicious and unfounded attack.“
Iraq Business News
Euro is lower today, dropping as speculation arises regarding the eurozone economy, and the possibility of recession. Manufacturing in the 17-nation currency zone has contracted for the eighth month in a row, and unemployment is at a level not seen for 14 years.
Economists and analysts are speculating that the eurozone has slipped into a recession. While it will be a few weeks until all the data can be compiled to create a picture of the eurozone’s economic growth (or contraction) in the first quarter of 2012, some think that the continued loss of jobs, as well as the shrinkage in manufacturing, indicates that a recession is in the mix.
These worries have sent the euro tumbling against the US dollar as Forex traders look for safe haven and security. Besides, the US economy is showing signs (albeit small signs) of recovery while the eurozone struggles. It is little surprise that traders prefer the greenback right now to the euro.
This turn of events could also likely mean that focus will, once again, turn to the debt crisis that doesn’t yet seem to be resolved. Spain is the next country of concern, and many are waiting to see if the situation in Greece actually improves.
At 13:20 GMT EUR/USD is lower at 1.3285, down from the open at 1.3362. EUR/GBP is lower at 0.8301, down from the open at 0.8338.
If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.
Forex News
Euro is lower today, dropping as speculation arises regarding the eurozone economy, and the possibility of recession. Manufacturing in the 17-nation currency zone has contracted for the eighth month in a row, and unemployment is at a level not seen for 14 years.
Economists and analysts are speculating that the eurozone has slipped into a recession. While it will be a few weeks until all the data can be compiled to create a picture of the eurozone’s economic growth (or contraction) in the first quarter of 2012, some think that the continued loss of jobs, as well as the shrinkage in manufacturing, indicates that a recession is in the mix.
These worries have sent the euro tumbling against the US dollar as Forex traders look for safe haven and security. Besides, the US economy is showing signs (albeit small signs) of recovery while the eurozone struggles. It is little surprise that traders prefer the greenback right now to the euro.
This turn of events could also likely mean that focus will, once again, turn to the debt crisis that doesn’t yet seem to be resolved. Spain is the next country of concern, and many are waiting to see if the situation in Greece actually improves.
At 13:20 GMT EUR/USD is lower at 1.3285, down from the open at 1.3362. EUR/GBP is lower at 0.8301, down from the open at 0.8338.
If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.
Forex News
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