Tuesday 6 October 2015

Samurai Summary: 06/10/2015

In a swooping bid to pick up a great bargain, Sibanye Gold headed up by Neal Froneman made an offer to buy the entire share issue of platinum player Aquarius Platinum. The company offered 19 US cents per share which sent prices in the stock 40% higher in the morning trade.

The platinum sector which has suffered severely from a drop in prices has begun a period of corporate action where it is speculated to see bankruptcy,buyouts and unbundling the courses of action need to remedy the excess output it has been producing. Added to this is the tense relations between employers and employees most notably unionised labour members who have ramped on their demands on the companies for a living wage. But will it succeed?
Viva la revolution as workers at Air France interpreted a executive meeting to protest against the plan restructuring of the airline carrier who intend to cut back on staff cost considerably. Things got very heated as executives had to be rushed to safety as protesters began to get violate with some not so lucky and having part of their clothing removed by the angry mob.
As the market eats up speculation that rates will be lower for longer and push markets higher, some believe that the bears have rattled the cage of most in the financial markets who have gotten use to the concept of free money which is partly why the Fed hadn't lifted rates.

The latest rally is evidence that investors and traders believe that weaker data is great for markets, but that's only in the short term. You cannot prevent the inevitable from happening and I think we are yet to reach that realisation in the market with every time we reach a critical point where rates should be lifted, market sentiment tips the scales and it gets delayed again. When will it end ?  
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