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Dollar Dips as Trump’s Time is Nearing

Is Trump rally going to continue after the new President is in the office? Trump wants to invest hundreds of billions into infrastructure, simplify regulations, and lower corporate tax rates. But, he also talks about limiting trade with China and other nations. These are mixed signals for the economy. Still, the election of a businessman to the White House has led to a stock market rally.

 

Now, however, investors holding back a bit. Dow still hasn’t closed above 20,000 and dollar has just declined as Trump’s ascend to the Oval Office is nearing. Currently investors, Reuters reports, are taking profits and getting nervous about Trump’s rhetoric about China.

 

The trade relations between China and the United States are very close, but the President-elect, as well as many Americans, think that it is only China that benefits. Since Trump’s election, however, the dollar index has risen by 4%, but in the past few days has declined a bit.

 

In addition to a declining dollar, the British pound is taking a hit. The Brexit talks may end up in hard landing for the UK as the European Union may not give it special trade deals after Britain leaves. At this point, it is Japanese yen, not dollar, that is perceived as a safe-haven currency.

 

“Some Japanese customers are buying on dips with the dollar at the 115 level, but with Trump’s speech ahead, some people are taking profits and adjusting their positions,” claimed Kaneo Ogino, director at Global-info Co, a currency research firm.

 

In recent days, dollar declined 0.6% to yen. Currently, the exchange rate is 115 yen to a dollar.

 

Benefits of Employing the Financial Services of Equities First Holdings

Equities First Holdings is an international lending company that maintains offices in a total of nine different locations in the United States, Europe, Asia, and Australia. The corporation was established in 2002 and grew to prominence when it started introducing various alternative loan solutions that would provide enough funds and room for personal financial growth to the borrower.

What are the benefits of employing the services of Equities First Holdings?

Entrepreneurs can use stocks as collateral.The company encourages the potential debtors to stay away from margin loans issued typically by banks as they would require them to put the titles of their properties in collateral. If the person fails to return the money on time along with the interest, there is a great chance that the capital lenders will liquidate the debtor’s investments and leave him or her homeless or jobless.On the other hand, the reason why Equities First Holdings supports the procurement of stock-based loans is because it allows the people to collateralize their stocks in the market. This allows the latter to manage their finances without worrying about their establishment or residence being taken from them.

The interest rates are considerably lower.

For the reason that the company does not believe in the traditional means of lending funds – and there are lesser market instabilities to be faced when dealing only with intangible stocks – the interest rates that they place on every amount that gets borrowed by clients are more within a range that will not be too difficult for the borrowers to reimburse later on. This is another benefit that many can take advantage of once they decide to strike a deal with Equities First Holdings.

The debtors need to simply fulfill a few requirements.

The economic crisis that had affected the world market in 2008 can still be felt by a lot of business owners at present. This fact has emboldened the bankers to increase the number of requirements and basically filter the individuals or companies who can be granted with a financial loan. The result is that the small firms that need funding become shunted to the side and not receive any aid.

Equities First Holding prevents such a misfortune by providing a shorter list of requirements to the potential debtors in order to help as many entrepreneurs as possible. It entails that a lot of startups and businesses can avail the services of the lending company.

The Equities First Holding Global Lender Has Spotted A Growing Trend Stock-Borrowers To Secure Working Capital

As financial institutions and banks tighten their lending criterion, the stock-based loans are there to offer investors a better alternative for capital raising. Equity First Holdings, a global leader in alternative financing solutions for shareholders, has seen traction in stock-based and margin loans in the economic climate where other funding institutions together with banks are tightening their loaning criterion. For all those borrowers who want raise quick money for projects, the equities lending has gained popularity as the best alternative for credit-based loans if you do not qualify for a bank loan.

While there are other numerous options for individuals out there, many banking institutions have slashed down their lending options thereby increasing interest rates and qualification capabilities. CEO and Founder of EFH, Al Christy, has spotted a trend in the collateralized loans by stocks as an alternative for those seeking working capital. The stock-based loans have a better loan-to-value ratio than other offered margin loans they have a lower interest level. For the most pat of the transaction, they provide certainty.

During a three-year loan term, markets and fluctuations are an inevitable part of the system. However, the stock-based loans are there to provide a hedge. For this reason, the borrowers lower their investment risk in the markets. Most of these loans have the non-recourse feature where the borrowers can walk away from the stock exchange without incurring costs. Moreover, the depreciation of inventories does not affect them. The borrower can keep his proceeds without any obligation to his lender.

EFH CEO says that most people in the financial world consider the stock-based loans as autonomous. While both firms use the securities as collateral, there are stated differences between the two. While you don’t have a margin loan, you must be pre-qualified as a borrower. You can expect the high loan to value ratios between 10 percent to 15 percent. Moreover, the lending firm has the authority to liquidate your collateral without any prior warning in the event of a call. While you benefit from these loans, you can also expect a fixed interest rate of up to 10 percent. EFH was founded in 2002 as the best financial solutions alternative.

Twitter may be attractive to private equity firm

Twitter’s stock price is shifting based on the changing likelihood of a buyout of the company. Onereport indicated that it is less likely a major company will buy Twitter and a private equity firm is a more likely buyer.

 

Twitter’s stock price skyrocketed a few weeks ago when a number of potential acquirers were thought to be interested in the company. Salesforce, Disney, and Google were just a few of the potential acquirers that were thought to be interested in buying Twitter. Last week, when a report came out indicating that bids for Twitter were not forthcoming the stock price dropped by almost 30%.

 

Twitter has experienced financial difficulties relating primarily to slowing sales and large losses. The Company had a loss of half a billion dollars in its last fiscal year. An acquirer of Twitter will need to have the financial resources to support the company during the challenging financial period that Twitter is currently experiencing including large cash injections. However, Twitter’s story is not as bad as it seems as much of its loss relates to stock option awards which are non-cash expenses that represent wages for employees through stock awards that employees receive. More volatile stocks like Twitter’s tend to have higher valuations assigned to it leading to larger expenses.

 

Twitter’s CEO, Jack Dorsey has been trying to turn around the company for the past year but has experienced problems monetizing their users in the same way that Facebook was able to engineer. A new owner, and in particular a private equity fund is likely to trim costs and terminate a significant portion of Twitter’s employees as a way of reducing their operating expenses and to potentially flip their investment to a larger buyer in the near future. While Twitter is a dominant player in its focused market, there is little room for growth and expansion in the United States.

 

The potential to lower operating costs both through salary count reductions as well as through lowering the compliance costs associated with being publicly traded. The potential for a private equity firm to flip this type of investment in a brand with a name as powerful as Twitter may ultimately prove to be too luring for a private equity company to resist.

The Death of Stephen Murray, Former CEO of CCMP Capital

Stephen Murray passes away. Steve was the former president of CCMP Capital. Steve served the company for many years; since 1999. Before his death, Steve had left CCMP Capital one month before due to health issues. He was 52 years old.

Stephen Murray CCMP Capital was once known as Chase Capital Partners after the purchase of Chase by J.P. Morgan. For some time, it was on the list of the largest private equity firms in the world. However, in 2006 the group split with each party going out independently. Steve Murray became the chief executive officer of CCMP Capital in 2007. Steve was the successor of Jeff Walker who was the founder of the group.

Stephen Murray CCMP Capital is a New York-based private equity company. The firm recently raised $3.6 billion about five months ago for its latest fund. The new board of CCMP Capital included Strongwood Insurance Holdings, Jetro JMDH Holdings, Infogroup Inc, Octagon Credit Investors, and Crestcom International.

Read more: Stephen P. Murray – President @ CCMP Capital Advisors

Stephen Murray had been one of the two executives of CCMP listed on SEC filings for the $3.6 billion fund. The other executive was Greg Brenneman. Murray was also one of the five control individuals on CCMP’s most recent form ADV list. Murray left the company a month before his death without a word. His name was then removed from CCMP’s website. By that time, CCMP’s spokesman had not disclosed much information on why Murray had left the company, though Stephen Murray CCMP Capital just said it was due to health-related issues. At that time the spokesman had also not disclosed any information on what would happen to Murray’s board seat or his successor as the CEO.

Greg Brenneman is the chairperson of CCMP, but he succeeded Murray as the chief executive officer of the equity company. Greg explained how the company feels saddened by the death of Steve. Greg said that Murray was not only a former partner but also his friend. Brenneman sent his thoughts, prayers and deepest condolences to his wife and sons saying that Murray was the pride of his family.

Murray was a founding partner of CCMP Capital. He was a good investor and he sealed several deals in the firm. Most of his career life was spent working in the private equity. Greg said that CCMP Capital was happy and grateful for the positive contributions of Stephen Murray CCMP Capital made to the company. Greg attributed the success of CCMP to Steve Murray.

The Next Test for Wall Street

The next couple of months are the true test for Wall Street and the major market indexes. Historically, the DJIA sees declines of five percent or more in the months of August and September. Investors who remain bullish on the markets should prepare themselves for possible losses over the next couple of months and expect patches of rough volatility.

Wall Street has seen impressive gains since its February bottom, rallying 19 percent and touching all-time highs in July. However, the second and third worst monthly declines since World War II occurred in the months of August and September. This raises the eyebrows of many speculators as the markets come off the heels of their all-time highs. The third quarter of 2016 saw traditionally defensive sectors such as healthcare, utilities and consumer staple post positive gains.

There are several explanations as to why Wall Street suffers declines in the months of August and September. Investors typically take vacations during these months and cash inflows into Wall Street decline. Others say that mutual funds and hedge funds use these months to position their portfolios causing a sharp decrease in trades. Other analysts speculate that investors heavily scrutinize the Dow 30’s second-half earnings forecasts causing many investors to back away from short-term trading during those months. The next couple of months will really test how long Wall Street can sustain these all-time highs.

London Wants to Solve the E.U. Problems Quickly

The most powerful players in London’s financial industry are calling for a quick resolution to the issues at hand in order to solve problems that remain. Doing so will allow the global economy and stock markets in Europe specifically to begin to figure out what the new normal is, invest in what looks like will be dominant down the line, and figure out how to do business with the rest of Europe and the world even though Britain’s foreign policy and therefor economic policy has come to be much more isolationist than anyone would have hoped for.

This is important, and it makes sense that people who make their living on the economy would want to see uncertainty in the economy be dealt with and handled as soon as possible. For London to be able to grow apart from the E.U. while still wanting to be a financial hub for all of Europe, serious time will need to be spent on Brexit negotiations that focus on the future relationship of London with the E.U. if that ends up being different than what the position of Britain as a whole is.

Uncertainty is hardly ever a good thing, and it’s certainly not helpful when you’re trying to develop industries that support the economy in a more sustained, stable way. If London wants to have a stronger financial market, it better hope for a quick resolution between the U.K and E.U.