{"id":10790,"date":"2014-09-06T13:09:28","date_gmt":"2014-09-06T17:09:28","guid":{"rendered":"http:\/\/www.pgm-blog.com\/?p=10790"},"modified":"2014-09-06T13:09:28","modified_gmt":"2014-09-06T17:09:28","slug":"highlights-of-the-week-of-september-3-2014","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/highlights-of-the-week-of-september-3-2014\/","title":{"rendered":"Highlights of the week of September 1, 2014"},"content":{"rendered":"<p style=\"color: #2c2c29;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/Draghi.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10826\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/Draghi.jpg\" alt=\"ECB keeps rate on hold amid global tensions, deflation threat\" width=\"275\" height=\"144\" \/><\/a><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/percentage-down.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-10827\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/percentage-down.jpeg\" alt=\"percentage down\" width=\"225\" height=\"140\" \/><\/a><\/p>\n<p style=\"color: #2c2c29;\">Dear\u00a0<strong>PGM Capital\u00a0<\/strong>Blog readers,<\/p>\n<p style=\"color: #2c2c29;\">In this weekend&#8217;s blog edition, we want to discuss some of the most important events that happened in the global capital markets, the world economy and the world of money in the week of September 1, 2014:<\/p>\n<ul>\n<li>PetroChina reports H1-2014 financial results and declares dividend.<\/li>\n<li>ECB lowers key rates, launches asset purchase program.<\/li>\n<li>USA Jobs disappointment.<\/li>\n<\/ul>\n<p><span style=\"color: #0000ff;\"><strong>PETROCHINA REPORTS H1-2014 FINANCIAL RESULTS AND DECLARES DIVIDED:<\/strong><\/span><br \/>\nOn Friday, August 29, 2014,\u00a0<span style=\"color: #000000;\">PetroChina Company Limited (HKE: 857), China&#8217;s largest oil and gas producer, reported its H1-2014 financial results.<\/span><\/p>\n<p><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/PetroChina.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10795\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/PetroChina.jpg\" alt=\"PetroChina\" width=\"350\" height=\"85\" \/><\/a><\/p>\n<p><strong>Highlights H1-2014 financial report:<\/strong><\/p>\n<ul>\n<li>Net profit increased 4 percent YOY to\u00a068.1 billion yuan (11.1 billion U.S. dollars)<\/li>\n<li>Revenues rose 4.8 percent to almost 1.2 trillion yuan.<\/li>\n<li>Its domestic business in the marketing segment and its international trading operations achieved an aggregate profit of 8.1 billion yuan, up nearly 138 percent year on year.<\/li>\n<li><span style=\"color: #666666;\">P<span style=\"color: #000000;\">rocessed 500 million barrels of crude oil during the period, up 0.2 percent year on year. <\/span><\/span><\/li>\n<li><span style=\"color: #666666;\"><span style=\"color: #000000;\">Output of refined oil products stood at 46 million tonnes, up 1.9 percent.<\/span><\/span><\/li>\n<li>The board of directors have declared an interim dividend of\u00a0<span style=\"color: #000000;\">0.1675 yuan or equivalent to HK<\/span><a class=\"event\" style=\"color: #144277;\">D\u00a0<\/a><span style=\"color: #000000;\">0.21065 per share, payable on September 29, for shareholders on record in the period September 13-18 2014.<\/span><\/li>\n<\/ul>\n<p><a title=\"PETROCHINA COMPANY LIMITED:Announcement of the interim results for the six months ended June 30, 2014 \" href=\"http:\/\/www.petrochina.com.cn\/ptr\/gsgg\/201408\/e5b2ae44bf76460480b0f778c83fb672\/files\/e24c55db80314c989191262216d8c120.pdf\" target=\"_blank\">Source:<\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>ECB LOWERS KEY RATES AND LAUNCHES ASSET PURCHASE PROGRAM:<\/strong><\/span><br \/>\nOn Thursday, September 4th, after its policy meeting, the\u00a0<span style=\"color: #000000;\">European Central Bank president, Mario Draghi held a news conference in which he announced that the ECB has taken the following decision in their effort to avoid\u00a0too-low inflation from derailing the eurozone&#8217;s weak economy:<\/span><\/p>\n<ol style=\"color: #000000;\">\n<li>The interest rate on the main refinancing operations of the Eurosystem will be decreased by 10\u00a0basis points to 0.05%, starting from the operation to be settled on September 10, 2014.<\/li>\n<li>The interest rate on the marginal lending facility will be decreased by 10 basis points to 0.30%, effective from September 10, 2014.<\/li>\n<li>The interest rate on the deposit facility will be decreased by 10\u00a0basis points to -0.20%, effective from September 10, 2014.<\/li>\n<\/ol>\n<p>Below chart shows the development of the ECB refinancing- and deposit rate since 2010.<a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/ECB-new-rates.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10801\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/ECB-new-rates.jpg\" alt=\"ECB new rates\" width=\"400\" height=\"205\" \/><\/a><\/p>\n<p>In an effort to keep too-low inflation from derailing the eurozone&#8217;s weak economy, the European Central Bank surprised financial markets with a cut in interest rates and new stimulus plans, despite opposition from Germany&#8217;s powerful central bank.<\/p>\n<p><span style=\"color: #000000;\">Press conference following the meeting of the Governing Council of the European Central Bank on September 4, 2014 at its premises in Frankfurt am Main, Germany.\u00a0<\/span><\/p>\n<p><object id=\"showIt\" style=\"width: 550px; height: 300px;\" width=\"550\" height=\"300\" type=\"application\/x-shockwave-flash\" data=\"http:\/\/www.contentforce.de\/iptv\/swf\/xflv\/showIt3.swf\"><param name=\"movie\" value=\"http:\/\/www.contentforce.de\/iptv\/swf\/xflv\/showIt3.swf\"\/><param name=\"menu\" value=\"true\" \/><param name=\"quality\" value=\"high\" \/><param name=\"wmode\" value=\"opaque\" \/><param name=\"swliveconnect\" value=\"true\" \/><param name=\"allowscriptaccess\" value=\"always\" \/><param name=\"scalemode\" value=\"showall\" \/><param name=\"allowfullscreen\" value=\"true\" \/><param name=\"flashvars\" value=\"bandwidthPath=http:\/\/www.contentforce.de\/iptv\/img\/test.txt&#038;skin=Media_Player&#038;borderColor=0xffffff&#038;plugin_version=9.0.115&#038;application=856981504&#038;language=en&#038;overColor=0xff0000&#038;webcastId=2114125835&#038;textColor=0x000000&#038;baseUrl=http:\/\/www.contentforce.de\/iptv\/player\/macros&#038;primaryColor=0xDFE3E6&#038;params=?forcedWidth=640$forcedHeight=360$keepVideoAspectRatio=true&#038;secondaryColor=0x000000\" \/><\/object><\/p>\n<p><span style=\"color: #0000ff;\"><strong>DISAPPOINTED US JOBS REPORT:<br \/>\n<\/strong><\/span>The US Jobs Report, reported on Friday, September 5, 2014, came in far from the markets expectations again.<\/p>\n<p>However, this time it was disappointing, unlike\u00a0the previous jobs reports. The US economy added only 142K\u00a0new jobs in August, despite the fact that it had been anticipated\u00a0to add more than 230K new jobs. This is the slowest jobs\u00a0creation since December 2013.<\/p>\n<p><strong>US August Jobs Report Headlines:<\/strong><\/p>\n<ul>\n<li>Non-Farm Employment Change added 142K new Jobs.<\/li>\n<li>Unemployment Rate fell to 6.1%.<\/li>\n<li>Labor Force Participation Rate fell to the lowest since 1973.<\/li>\n<li>Household Employment increased by 16K only.<\/li>\n<\/ul>\n<p>Below chart shows the US non-farm and manufacturing payroll changes<\/p>\n<p><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/US-Manufacturing.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10815\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/US-Manufacturing.png\" alt=\"US Payroll changes\" width=\"500\" height=\"569\" \/><\/a><\/p>\n<p><strong style=\"color: #0000ff;\">PGM CAPITAL COMMENTS:<\/strong><\/p>\n<p><strong>Petrochina:<br \/>\n<\/strong>Based on its fundamentals and business, model, PetroChina may be an interesting play thanks to its forward Price to Earnings ratio of 10.94, its Price to Sales ratio of 0.73, price to book ratio of 1.43 \u00a0and its healthy dividend yield of 3.2%.<\/p>\n<p>These factors suggest that PetroChina is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that PetroChina has decent revenue metrics to back up its earnings.<\/p>\n<p>As can be seen from below chart, the stock of the company is up approx. <span style=\"color: #008000;\"><strong>890 percent<\/strong><\/span> (in USD) since it went IPO in the year 2000. During the same period the company has increased its dividend from US$ 0.713 a share in 2000 to US$ 5,247 in 2014, an increase of <span style=\"color: #008000;\"><strong>6,360 percent<\/strong><\/span>.<\/p>\n<p><a title=\"PetroChina Company Limited Dividend Date &amp; History\" href=\"http:\/\/www.nasdaq.com\/symbol\/ptr\/dividend-history\" target=\"_blank\">Dividend history PetroChina (2000 &#8211; 2014)<\/a><\/p>\n<p><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/PetroChina.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10818\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/PetroChina.png\" alt=\"PetroChina\" width=\"500\" height=\"225\" \/><\/a><\/p>\n<p>On top of this it is worth mentioning that PetroChina \u00a0as China biggest Energy Company will<span style=\"color: #212425;\">\u00a0stand to benefit from Russian President Putin&#8217;s\u00a0offer to sell a stake in the country&#8217;s second-biggest oil project to &#8220;Chinese friends,&#8221; as reported by\u00a0<\/span><a title=\"Putin Offer to Sell Assets to China\" href=\"http:\/\/www.bloomberg.com\/news\/2014-09-02\/putin-offer-to-sell-assets-to-china-to-aid-cnpc-sinopec.html\" target=\"_blank\">Bloomberg<span style=\"color: #212425;\">\u00a0on September 2nd.<\/span><\/a><\/p>\n<p>Based on the above we have a <span style=\"color: #008000;\"><strong>BUY<\/strong><\/span> rating on the stock of PetroChina.<\/p>\n<p><strong>ECB Lowering rates:<br \/>\n<\/strong>The ECB has been under pressure to kick-start the eurozone economy, as manufacturing output has slowed and inflation has fallen to just 0.3%. So the ECB is getting back into the business of buying financial assets. No government debt this time, though it&#8217;s clear that could yet come.<\/p>\n<p>Instead the focus is on assets that bundle up private sector loans.<\/p>\n<p>Does that sound familiar? Yes, it was that kind of stuff that played a central role in the financial crisis, especially mortgage backed securities in the USA.<\/p>\n<p>But that market is much less developed in Europe and it could ultimately help the Eurozone deal with another problem: the continued weakness of the banks.<\/p>\n<p>We believe that with the announcement of the ECB of last Thursday, September 4th, the world has entered in the second stage of the <a title=\"Currency war\" href=\"http:\/\/en.wikipedia.org\/wiki\/Currency_war\" target=\"_blank\">currency war<\/a>, which in the end will lead to hyperinflation which will wipe out savings and erode pensions.<\/p>\n<p><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/currency-war2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10831 size-medium\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/09\/currency-war2-300x222.jpg\" alt=\"currency-war\" width=\"300\" height=\"222\" \/><\/a><\/p>\n<p><strong>USA Job report:<br \/>\n<\/strong>There is no excuse for this disappointing jobs report.\u00a0There is only one reason\u00a0for this disappointing result, and that is that the labor market\u00a0<span style=\"color: #2c2c29;\">is\u00a0<\/span><span style=\"color: #2c2c29;\">shrinking and\u00a0that<b>\u00a0<\/b>the slack continues<\/span><\/p>\n<p><span style=\"color: #2c2c29;\">The question remains\u00a0<\/span>whether it will<span style=\"color: #2c2c29;\">\u00a0change the Fed-tapering course. In short: No<\/span>. However, this will lead to the Fed not speaking about the timing of the next rate hike anymore. Keep in mind that the Fed insisted to keep the \u201cIF\u201d in every statement, saying that tapering will continue if outlook holds.<\/p>\n<p>There have been many disappointing figures recently, except the surveys, which reached notable levels. However, the core figures remain\u00a0weak and major banks already began to cut the Q3 GDP forecast.<\/p>\n<p style=\"color: #2c2c29;\">Last but not least, before following any investing advice, always consider your investment horizon and risk tolerance and financial situation and be aware that stock prices don&#8217;t move in a straight line and that sharp corrections may happen in the short term.<\/p>\n<p style=\"color: #2c2c29;\">Until next week.<\/p>\n<p style=\"color: #2c2c29;\">Yours sincerely,<\/p>\n<p style=\"color: #2c2c29;\"><a style=\"color: #807d7a;\" href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/05\/Suriname-Times-foto.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9925 \" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/05\/Suriname-Times-foto-150x150.jpg\" alt=\"Suriname Times foto\" width=\"96\" height=\"96\" \/><\/a><\/p>\n<p style=\"color: #2c2c29;\">Eric Panneflek<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dear\u00a0PGM Capital\u00a0Blog readers, In this weekend&#8217;s blog edition, we want to discuss some of the most important events that happened in the global capital markets, the world economy and the world of money in the week of September 1, 2014: PetroChina reports H1-2014 financial results and declares dividend. ECB lowers key rates, launches asset purchase<a href=\"https:\/\/www.pgmcapital.com\/nl\/highlights-of-the-week-of-september-3-2014\/\">[&#8230;]<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,8,23,9,24,10,11,19,12,29,15,16,22,1,17,32,18],"tags":[],"class_list":["post-10790","post","type-post","status-publish","format-standard","hentry","category-commodities","category-debt-crisis","category-earnings-report","category-emerging-markets","category-energy","category-eric-panneflek","category-euro","category-financial-news","category-inflation","category-merger-acquisition","category-pgm-capital","category-precious-metal","category-the-week-in-review","category-uncategorized","category-us-dollar","category-video","category-world-economic-outlook"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/10790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=10790"}],"version-history":[{"count":0,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/10790\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=10790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=10790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=10790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}