The G7, a group of the world’s seven largest industrialised economies, has warned excessive volatility in currency markets undermines the stability of markets.
In a statement issued in Britain, the G7 also urged nations to rely on market-driven currency valuations, rather than engage in the competitive devaluation of their currencies.
“We are agreed that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. We will continue to consult closely on exchange markets and co-operate as appropriate,” the G7 states.
JB Hi-Fi result is bad news for hedge funds
JB Hi-Fi’s surprise growth figures might be bad news for hedge funds, which were forced into a buying frenzy on Monday to cover their short-selling positions in the company.
Of the 10 most commonly short-sold stocks, six are in the discretionary retail sector, with 18.57% of JB Hi-Fi’s stock currently held by hedge funds.
“There is a fairly wide-held view by hedge funds that discretionary retail is the one to short. Those hedge funds would have to be very, very nervous at the moment about their short positions [and] I suspect they will begin to wind those positions back,” Bell Potter’s head of research, Peter Quinton, told Fairfax.
Mining giants accumulate $1.7 billion war chest against mining tax
Mining giants Rio Tinto and BHP Billiton have accumulated a combined total of $1.7 billion worth of tax credits that can be used against future Minerals Resource Rent Tax liabilities.
The news comes after Andrew “Twiggy” Forrest revealed his Fortescue Resources group will not be forced to pay anything under the tax this year.
The news comes after Treasurer Wayne Swan admitted the government will collect just $126 million in MRRT revenues this year.
In New York, the S&P500 was 0.174% higher at 1519.55 in recent trading. The Aussie dollar is down to $US103.03 cents.