Page 25 - ARUBA TODAY

BUSINESS Wednesday 23 august 2017
A25

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