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BUSINESS                 Wednesday 23 august 2017
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              Stocks surge, put shaky few weeks further behind them



            By STAN CHOE                 buy, not reasons to unload
            AP Business Writer           stocks.
            NEW  YORK  (AP)  —  Stocks  “We’ve  seen  these  blips
            around  the  world  jumped  of  volatility  this  year,  and
            on Tuesday, and the Stan-    we  have  tended  to  calm
            dard & Poor’s 500 had one  down  very  quickly  after-
            of its best days of the year,  ward,”  said  Jon  Adams,
            as markets put a shaky last  senior investment strategist
            couple of weeks further be-  at BMO Global Asset Man-
            hind them.                   agement.
            Shares of technology com-    He  pointed  in  part  to  in-
            panies and retailers helped  creased    optimism   that
            lead the way in the United  Washington  will  avoid  a
            States. And with markets in  default  on  the  federal
            a  less-nervous  mood,  pric-  debt.  The  Senate’s  major-
            es for Treasury bonds, gold  ity leader said on Monday
            and  other  go-to  invest-   there is “zero chance” that
            ments  for  turbulent  times  Congress  will  vote  against
            fell.                        increasing  the  country’s
            The  Standard  &  Poor’s  borrowing limit.
            500  rose  24.14  points,  or  1  Many analysts are expect-
            percent,  to  2,452.51  for  its  ing  markets  to  drift  side-
            fourth-biggest  gain  of  the  ways  in  upcoming  weeks,
            year. It’s taken just two days  with  few  market-moving   Trader Fred DeMarco works on the floor of the New York Stock Exchange. Stocks around the world
            for  the  index  to  recoup  events on the calendar.      jumped on Tuesday, and the Standard & Poor’s 500 had one of its best days of the year, as markets
            half  the  loss  it  sustained  in  One  highlight  could  be   put a shaky last couple of weeks further behind them.
            the  two  weeks  since  set-  the  symposium  for  cen-                                                                  (AP Photo/Richard Drew)
            ting  a  record  on  Aug.  7.  tral  bankers  from  around   speak  at  the  symposium,  ing down, it would mark a  the  11  sectors  that  make
            Those  two  weeks  were  a  the world in Jackson Hole,    and  if  either  suggests  a  return to a smooth ride for  up the index.
            jolt  for  markets,  as  worries  Wyoming, at the end of this   more aggressive pace than  investors. The S&P 500 is up  Macy’s  jumped  to  one  of
            rose about political strife in  week.                     investors  are  expecting,  it  9.5  percent  for  the  year,  the  largest  gains  in  the  in-
            Washington and abroad.       The Federal Reserve is rais-  would likely mean another  and the climb had been a  dex after it said an eBay ex-
            The  Dow  Jones  industrial  ing interest rates and is pre-  tumble  for  markets.  But  in-  remarkably placid one until  ecutive, Hal Lawton, would
            average rose 196.14 points,  paring  to  pare  back  the   vestors say the Fed in par-  two weeks ago. It had just  become  its  president.  Tra-
            or 0.9 percent, to 21,899.89  $4.5  trillion  it  holds  on  its   ticular  has  been  meticu-  two days this year where it  ditional retailers have been
            on  Tuesday,  and  the  Nas-  balance  sheet,  and  inves-  lous in setting expectations  fell  by  1  percent  or  more,  struggling to compete with
            daq  composite  gained  tors  are  wondering  when        so markets aren’t taken by  before  doubling  its  tally  online  rivals,  and  Macy’s
            84.35,  or  1.4  percent,  to  the European Central Bank   surprise.                   during the last two weeks.   also said it is restructuring its
            6,297.48.                    will follow suit.            “We     wouldn’t    expect  Technology companies led  organization to drive more
            It’s the latest example of in-  The heads of both the Fed   much market moving over-   the  way,  and  those  in  the  sales and cut costs. Its stock
            vestors seeing drops in the  and  the  European  Cen-     all,” Adams said.            S&P  500  rose  1.5  percent  rose  89  cents,  or  4.6  per-
            market  as  opportunities  to  tral  Bank  are  expected  to   If markets do end up calm-  for the biggest gain among  cent, to $20.42.q


                 UK subprime lender loses two-thirds of value as CEO quits


            By PAN PYLAS                 set to lose its place among  rioration  in  the  outlook  for   agents,  Provident  moved  sues  relating  to  customer
            Associated Press             British  blue  chip  stocks  at  its  home  credit  business.   to  a  model  that  relied  on  orders  have  hobbled  the
            LONDON (AP) — Provident  the next quarterly update.       And  in  further  blows  to  its   so-called Customer Experi-  transition.
            Financial, a British subprime  Its  stock  market  fall  from  shareholders,   Provident   ence Managers, who were  In  June,  just  ahead  of  the
            lender,  saw  two-thirds  of  grace — Provident’s share  also  scrapped  its  dividend   full-time  employees  of  the  deployment  of  the  new
            its market value wiped out  price  is  down  around  80  and revealed that its credit   company.    There   have  model,  the  company  in-
            Tuesday  after  the  com-    percent  from  a  year  ago  card  subsidiary,  Vanquis   been major issues with the  formed  investors  that  the
            pany  issued  another  profit  — has conjured up memo-    Bank, was being investigat-  transition to the new model  strategy  wasn’t  going  to
            warning    and    revealed  ries of the dark days of the  ed  by  Britain’s  regulator,   — some agents left earlier  plan  and  it  issued  a  first
            that its chief executive was  global financial crisis when  the Financial Conduct Au-  than  expected  while  IT  is-  profit warning. q
            leaving with immediate ef-   issues  with  subprime  lend-  thority,  over  a  repayment
            fect.                        ing took the banking sector  option  plan,  which  has  al-
            Provident  Financial’s  share  and  the  global  economy  lowed customers to freeze
            price closed down a whop-    to the brink.                repayments.
            ping  66  percent  at  5.90  “A catastrophic share price  Chief   executive    Peter
            pounds, meaning the com-     drop  in  a  subprime  lender  Crook,  who  backed  plans
            pany isn’t even worth 1 bil-  — it’s like the last 10 years  to  introduce  the  new  op-
            lion  pounds  ($1.29  billion)  never  happened,”  said  erating model that is at the
            anymore.                     Neil  Wilson,  senior  market  heart  of  the  company’s
            It  may  not  be  the  biggest  analyst at ETX Capital.   woes,  has  resigned.  Earlier
            of companies but its stock  Tuesday’s  share  price  col-  this year, the company an-
            market retreat stands to be  lapse  came  as  Provident,  nounced  plans  to  change
            one of the largest daily falls  which  specializes  in  lend-  the  way  it  sold  and  col-
            in the 33-year history of the  ing  to  individuals  with  low  lected money in the home
            FTSE  100  index  of  leading  and   variable   incomes,  credit   division.   Instead
            British  shares.  Provident  is  revealed  a  massive  dete-  of   using   self-employed
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