John's Dance School~!

BOK

The Bank of Korea's decision is to change the benchmark seven-day repurchase rate at 2.25 currently. Heightened volatility of economic activity is caused to leave the benchmark at 2.25. There are two main factors that the recovery of US economy is slowing, and China's rapid expansion and growth is cooling. The global economy is uncertain and unstable, but it is not extent to a recession with double dip.The Korean won weakened by 0.8 percent from 1182 to 1192. its decision is to leave the rate on hold. They predict Korean consumer price index will rise at a faster pace and exceed the bank's inflation target of 3 percent. South Korea is under pushing the inflation rate beyond their target.

Investopedia

1) Short selling (공매도): Short selling is the selling of a stock that the seller does not own, also it is the sale of a security that isn't owned by the seller. When you short selling a stock, your broker will lend the share to you! the stock will come from the brokerage's own inventory and brokerage changes a fee about its borrowing. Covered shot selling means

2) Sovereign Wealth Fund: KIC (Korea Investment Corporation) government-owned investment (funded by Bank of Korea and government) only investing outside of Korea, but try to change the policy to new one to be able to invest its funds on Korean market and Swap market

3) Grid Parity: will reach the point where the cost of solar power equal to the cost of fossil fuels.

4) BSI (Business Survey Index (in term of Korea): BSI measures manufacturers' outlook on business condition for upcoming month. good condition should be over 100. (we are at 103 in August) Also, CSI (Consumer Survey Index)

5) Bonds provides specific interest payment (coupon) and a promised return of money (principle) on a specific date (maturity).

6) Dow Jones Industrial Average represents the stock market. This is made up of 30 American industrial companies

7) Predatory pricing is under antitrust law in the US, such as Amazon is in a dominant or monopoly position and used to sell below its own cost to drive rivals out of business and destroy them.

Prolonged slowdown!

Take a look at our economy. "Prolonged slowdown!" Major concern is of a global slowdown. No one is expecting "double-dip recession", but we know slowdown economy seems to be real. China and the US shows the signs of prolonged slowdown. Also, Korean government shows unemployment rate keeps rising and soaring to the highest level. We know that Fed keeps its interest rates at low, so the market acts less aggressive. We do not know when the market will boost and investors will come out to put its money on the market. Anyway, they are really cautious to bet on this market under the slowdown circumstance. 

Korea Stocks stumble after FOMC meeting

Shares in LG Display, LG electronics, SSanyoung Motor,Hynix Semiconductor shed and declined around 3 to 4 percent. Renault-Samsung Motor pulled out of the bidding for SSangyong Motor, the Korea's smallest automaker. Shares of SSanyoung motor plunged 14 percent from 15,000 won to 12,950 won on Wednesday. Japan worries about a further strengthening in the yen against the dollar, while Korea worries about a further weakening in the Won against the dollar.  




plunge, shed, drop, decline, stumble, <-> Surge, climb, gain

No Way~ Did Goldman Sachs Lose Money? It is impossible!

People calls the GS as A greed investment bank! Gordon Gekko who was a main character in the movie "Wall Street" directed by Oliver Stone left a famous phase, "Greedy is good"
Likewise, Goldman Sachs loves a greed move and has always followed profits and growths on the Wall street! But, Bloomberg reports Goldman Sachs lost Money! Wow! What a astonishing story! In this year, GS has had rough moments. Government pointed a target as GS and investigated the company about a fraud lawsuit filed by SEC.SEC argued GS hide the contract with John Paulson who short position in Mortgage Backed Securities (MBS) created by GS and Chosen by John Paulson. Here is the story about the transaction between GS and John Paulson. John Paulson who is most aggressive and successful hedge fund manager had made a contact with GS and GS asked John to choose pieces of Mortgages to create a Big MBS portfolio. OF CAUSE! JOHN were willing to choose slices for GS because he would short position in the mortgages chosen by himself and he knew the mortgage would go bad. He bought Credit Default Swap (CDS) related to the selected mortgages, so the MBS would be insolvent and default, the John's company made big profits from the insurance (CDS) he bought before. However, the investors who bought the MBS from GS lost all money, but GS had no liability to pay back the loss. GS just got brokerage fees from investors and Paul and they were just in the middle of the product.

Sorry.What a long explanation. Anyway, GS is still managing its company under a greed motivation, they care less customers (investors) and care more themselves even though they are acting like a service company! I will make another comment later! Anyway, I will keep tracking on GS's performance!

We need to be cautious about volatility from slightly change in positions.

Japanese market dropped from the start following disappointing of US job data, and this put a strain on Japanese currency-sensitive stocks such as Toyota, Cannon, Sony and other makers. US job data announced and it sank both Wall street and the dollar against Yen! The dollar is trading at Y85.55, but the dollar is still dropping and if the dollar is below Y85, we may see a 200-300 point fall of stock market! ,so we should be cautious about volatility of Japanese stock market and its currency!