Small Business SEO V Big Business SEO

SEO is obviously the cornerstone of any website’s success. But it is important to note that based on your business size, SEO has different focal points and different purposes. You should keep this in mind when looking for an SEO developer to help your website get noticed. With that in mind, this article will elaborate on some key differences when looking at SEO based on business size.

#1: Small Business SEO Is More Local While Big Business SEO Is Done On A Wider Scale

Although all small businesses are different, most are usually focused on selling products or services at a local level where bigger businesses will usually sell their products or services at a wider range. Thus, the SEO has to be adjusted to suit these needs. Small business SEO will focus more on getting results on a local level. They will more likely focus on getting keywords related to the city, town, or metropolitan area that they are located in.

Big business SEO will focus more on keywords related to the business type itself. This is because as a big business, you need to make more money and thus, need to cater to a much greater geographical range in order to get more customers. Keywords related to the locality would not be of great use to a big business the way it would for a small business.

#2: Big Business SEO Will Usually Be More Aggressive Than Small Business SEO

Aggressiveness, in this case, is defined by the number of backlinks and articles produced based on rate. Since big businesses often go at great lengths to make sure that their site is located near or at the top, their SEO has to be as aggressive as possible. Some even go through the unfortunate decision to blacklist their links, which ends up being costly in the long run. The bottom line is, big businesses have a strong need to compete and stand out as the business of choice, so they spend a lot of time and resources to make sure their business comes out on top in terms of sales and views to their website.

Small businesses do not necessarily have the same desire to compete or have their business stand out online. For them, SEO is just a means to get their site noticed, but they may be content with their site being on the first page of a search as opposed to the first site listed. Thus, small business SEO is considerably less aggressive and thus, backlinks and articles may come at a slower rate.

As economy slips, China’s wealthy move money out

HONG KONG: As the Chinese economy stumbles, wealthy families are increasingly trying to move large sums of money out of the country, worried that the value of the currency will fall and their savings will be worth less.

To get around the country’s cash controls, individuals are asking friends or family members to carry or transfer out $50,000 apiece, the annual legal limit in China. A group of 100 people can move $5 million overseas.

The practice is called Smurfing, named after the blue, mushroom-dwelling cartoon characters, and it is part of an exodus of capital that is casting doubt on China’s economic prospects and shaking global markets. Over the last year, companies and individuals have moved nearly $1 trillion from China.

Some methods are perfectly legal, like investing in real estate elsewhere, buying businesses overseas and paying off debts owed in dollars. Others, like Smurfing, are more dubious, and in certain cases, outright illegal. Chinese customs officials caught a woman last year trying to leave the mainland with $250,000 strapped to her chest and thighs and hidden inside her shoes.

If the government cannot keep citizens from rushing to the financial exits, China’s outlook could darken. The swell of outflows is a destabilizing force in China’s slowing economy, threatening to undermine confidence and hurt a banking system that is struggling to deal with a decade-long lending binge.

The capital flight is already putting significant pressure on the country’s currency, the renminbi. The government is trying to prevent a free fall in the currency by stepping into the markets and tapping its huge cash hoard to shore up the renminbi. But a deep erosion of those reserves may set off further outflows and create turbulence in the markets.

China is also trying to put the brakes on outflows, by tightening its grip on the country’s links to the global financial system. The government, for example, just started to clamp down on people’s use of bank cards to buy overseas life insurance policies.

Such moves have trade-offs. The limits create concerns that the government is pulling back on reform efforts that China needs to keep growth humming in the decades to come. But the near-term pressure also requires serious attention, given the global shock waves.

“The currency has become a very near-term threat to financial stability,” said Charlene Chu, an economist at Autonomous Research.

Navigating such problems is fairly new for China.

For years, China soaked up much of the world’s investment money, as the economy grew at annual rates in the double digits. A largely closed financial system kept China’s own money corralled inside the country.

Now, with growth slowing, money is gushing out of the country. And the government has a looser grip on the spigot, because China dismantled some currency restrictions to open up its economy in recent years.

“Companies don’t want renminbi and individuals don’t want renminbi,” said Shaun Rein, the founder of the China Market Research Group. “The renminbi was a sure bet for a long time, but now that it’s not, a lot of people want to get out.”

The Chinese central bank is fighting the downward pressure by purchasing large sums of renminbi, selling dollars from its currency reserves to do so. China’s reserves sank by $108 billion in December and an additional $99 billion in January, to $3.23 trillion. A year and a half ago, they stood at $4 trillion.

And the renminbi still faces plenty of headwinds.

The government has been cutting interest rates to stimulate the economy, making it less attractive for savers to keep their money in the country. Corporate profits are shrinking because China has too many spare steel mills, car factories and empty houses, leading investors to seek better returns elsewhere.

Ronald Wan, a Hong Kong money manager who is on the boards of numerous state-owned enterprises in mainland China, said that pessimism was becoming the consensus.

“Among the companies I have been in contact with,” he said, “all of them have the intention of moving money out of the country.”

Individuals can move $50,000 a year across China’s borders. Companies and sophisticated investors have more freedom to send out money legally for big-ticket purchases and investments. Overseas and domestic companies, which maintain bank accounts in various currencies, can also shift their cash, as well as borrow based on which currency they think will fall in value.

But unofficial methods abound.

Companies have inflated trade invoices to keep more profits outside the country, although Chinese authorities have cracked down on the practice.

Rein described doing market research with a wealthy woman in Shanghai who changed $7 million this winter from renminbi into dollars, by using 140 relatives, friends and even friends’ relatives who each carried $50,000 apiece.

The government, though, is trying to cut off some routes.

Two years ago, the government gave permission for insurers to invest 15 percent of their assets overseas, up from 1.5 percent. But China abruptly told insurers this winter to suspend many of their overseas plans, according to Hong Kong financiers.

 

Beijing has restricted the withdrawal of renminbi from overseas branches of Chinese banks. In Shenzhen, banks have begun requiring that residents make reservations up to a week in advance if they want to change the daily maximum of $10,000 worth of Chinese currency into dollars.

 

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In January, Zou Tai, a hospital worker from east central China, caught an early morning flight to buy a $50,000 life insurance policy in Hong Kong. Scores of Chinese customers have been doing the same to get money out of the country, since the policy is bought in renminbi and can be cashed out in U.S. dollars.

 

“The buying power of the renminbi keeps dropping,” Zou said. “I feel that China’s leaders will have no choice but to devalue the renminbi.”

Zou acted in the nick of time, because the government is now pushing back. UnionPay International, a government-controlled bank card company, recently announced that it would start strictly enforcing a pre-existing but widely ignored limit on overseas insurance purchases of $5,000 a year per card.

Asia shares rise despite weak China, Japan data; firmer yuan helps

Asian shares snapped a five-session losing streak on Monday as China’s central bank fixed the yuan sharply stronger, easing fears of depreciation for now, though a string of weak data from Japan to China and Indonesia suggested the bounce may be short-lived.

 

European shares were set to follow Asia higher. Financial spreadbetters expected Britain’s FTSE 100 to open as much as 1.4% higher, with Germany’s DAX and France’s CAC 40 both seen up nearly 1.3%.

 

E-Mini futures for the S&P 500 rose 1.1%, though markets in the US are closed on Monday for a holiday.

 

Most stock markets in Asia advanced early, encouraged by a stronger finish in US and European markets on Friday and by a relatively calm opening for China’s volatile markets after a week-long holiday.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 2.3%, after losing 10% of its value so far this year.

 

Japan’s Nikkei jumped 7.2%, shrugging off data that showed Japan’s economy contracted more than expected in the final quarter of 2015, after losing 11% last week.

 

In China, spot yuan jumped more than 1% to 6.4900 per dollar — its firmest this year — after the People’s Bank of China set its daily midpoint 0.3% stronger and the head of the bank was quoted as saying speculators should not be allowed to dominate market sentiment.

 

The Shanghai Composite Index was down 0.7% in its first session since Feb. 5, a relatively benign move given the wild swings seen worldwide recently.

 

Still, much weaker-than-expected Chinese trade data pointed to further pressure on the yuan and the potential for more capital outflows. January exports fell 11.2% from a year earlier, while imports dived 18.8%, suggesting the world’s second-largest economy is still losing steam.

 

“The poor trade data in January suggests weakening of the underlying momentum in trade growth, which reflects lingering sluggishness in both external demand and fixed asset investment in China,” Bank of America Merrill Lynch strategists said.

 

The disconnect between markets and economics was perhaps the starkest in Japan, where the Nikkei was on track to post its biggest single-day rise since the depths of the global financial crisis in 2008, shrugging off data which showed the economy contracted by an annualised 1.4% in the final quarter of 2015, worse than expected.

 

“Although we consider the violent risk-off move of recent weeks largely unwarranted by economic fundamentals, the sheer magnitude of the sell-off has raised the risk that market volatility could feed back into the real economy,” said Ajay Rajadhyaksha, an economist at Barclays.

 

“Central banks have very limited ability to ride to the rescue of risk assets.”

 

Barclays pointed to three sources of volatility that had potential negative feedback loops: lower oil prices, capital outflows and economic weakness in China, and pressure on European banks.

 

“Of these, we consider China the biggest medium-term risk, but the least immediate issue,” wrote Rajadhyaksha.

 

Indeed, the strong yuan fixing by the People’s Bank of China (PBOC) on Monday was seen by some traders as a move to deflect speculation about a possible devaluation that has been one of the main factors roiling global markets.

 

In an interview over the weekend, PBoC Governor Zhou Xiaochuan said there was no basis for the yuan to keep falling, and China would keep it stable versus a basket of currencies while allowing greater volatility against the US dollar.

 

“I still believe that Zhou Xiaochuan’s comments during the weekend and today’s strong fixing rate helped alleviating some of the pressure on the CNY, at least temporarily.

 

And so the same for Asia FX,” said Nordea Markets’ senior analyst Amy Yuan Zhuang in Singapore, referring to the yuan.

 

Oil prices consolidated gains after surging as much as 12% on Friday after a report once again suggested OPEC might finally agree to cut production to reduce the world glut.

 

Early Monday, US crude had eased 0.58% to $29.26 a barrel, while Brent crude dipped 0.54% to $33.17.

 

Oil was aided in part by weakness in the US dollar as a steep drop in Treasury yields undermined the currency’s interest rate differentials.

 

Against a basket of currencies, the dollar was up a shade at 96.190 having been at its lowest in almost four months. Likewise, it edged up to 113.90 yen, having touched a 15-month trough just under 111.00 last week.

 

The euro was last at $1.12185, having slipped from a 3-1/2 month peak of $1.1377.

 

Gold eased to $1,222.80 an ounce, after enjoying its best week in four years as investors fled riskier assets.

 

Japan Economy Shrinks More Than Expected

Japan’s economy shrank more than expected in the final quarter of last year as consumer spending and exports slumped, adding to headaches for policymakers already wary of damage the financial market rout could inflict on a fragile recovery.

Gross domestic product contracted by an annualized 1.4 percent in October-December, bigger than a market forecast for a 1.2 percent decline and matching a fall marked in the second quarter of last year, Cabinet Office data showed on Monday. It followed a revised 1.3 percent increase in the previous quarter.

The data underscores the challenges premier Shinzo Abe faces in dragging the world’s third-largest economy out of stagnation, as exports to emerging markets fail to gain enough momentum to make up for soft domestic demand.

Abe sought to reassure markets that Tokyo is ready to stem excessive market volatility that could undermine the wealth effect delivered by his stimulus policies.

“As we have agreed at G7 and G20, sudden currency moves are undesirable. I want the finance minister to closely monitor the situation and respond with appropriate measures as needed,” he told parliament on Monday.

Market speculation of additional monetary easing simmers, although the Bank of Japan’s policy ammunition appears to be dwindling, analysts say.

“Private consumption is especially weak. The economy is at a standstill,” said Junko Nishioka, chief economist at Sumitomo Mitsui Banking.

“It’s a matter of time before the BOJ and the government will take additional stimulus measures,” she said, predicting the central bank will ease policy again as early as next month.

RUNNING OUT OF AMMUNITION?

With his stimulus policies that gave big manufacturers windfall profits, Abe had hoped to generate a positive cycle in which companies raise wages and help boost household spending.

Instead the data showed that private consumption, which makes up 60 percent of GDP, fell 0.8 percent, exceeding market forecasts of a 0.6 percent decline.

Since Abe took power three years ago, private consumption has shrank by roughly 1.5 trillion yen to 306.5 trillion yen ($2.7 trillion).

The economy grew an average 0.68 percent since Abe’s administration took office in 2013, below a 1.8 percent increase during the opposition Democratic Party’s three-year reign.

Offering some hope for policymakers, capital expenditure rose 1.4 percent, confounding market expectations for a 0.2 percent decrease.

But analysts doubt whether the economy will gain momentum in coming months, with the recent market turbulence and slowing Chinese growth clouding the outlook for corporate profits.

Exports fell 0.9 percent in October-December after rising 2.6 percent in the previous quarter, underscoring the pinch companies are already feeling from soft emerging market demand.

Domestic demand shaved 0.5 percentage point off GDP growth, while external demand – or net exports – added just 0.1 point.

Last month the BOJ cut a benchmark interest rate below zero, stunning investors with another bold move to stimulate growth.

But the shock move has failed to boost Tokyo stock prices or weaken the yen as Japanese markets remained at the mercy of a global equity sell-off.

Oil extends rally on prospects OPEC could act to counter low prices

A worker grabs a nozzle at a petrol station in Tehran, Iran January 25, 2016. REUTERS/Raheb Homavandi/TIMA

Oil prices rose on Monday, extending a rally triggered last week by speculation that OPEC might agree to cut production to reduce a supply glut that has pushed prices to the lowest in over a decade.

Brent crude futures LCOc1, the global benchmark, were up 33 cents at $33.69 a barrel at 1023 GMT. U.S. futures CLc1 traded at $29.79 a barrel, up 35 cents on Friday’s close. Trade is likely to be thinner than usual on Monday due to the U.S. Presidents Day holiday.

“Some traders still think about the chances of an OPEC plus Russia (production) cut and close their short positions,” said Frank Klumpp, oil analyst at Stuttgart-based Landesbank Baden-Wuerttemberg.

The United Arab Emirates’ energy minister said the Organization of the Petroleum Exporting Countries was willing to cooperate on an output cut, the Wall Street Journal reported last week.

And Nigeria’s oil minister told Reuters the mood inside OPEC was shifting to a growing consensus that a decision must be reached on how to prop up prices.

Non-OPEC member Russia said on Monday it wanted to see improved relations between Iran and Saudi Arabia at a time when joint action is needed to influence global oil prices, according to the RIA news agency.

“The fact that the market has reacted so strongly certainly indicates that these comments are being taken seriously,” said analysts at Frakfurt-based Commerzbank.

However, many analysts, including the International Energy Agency, are still sceptical OPEC will cut a deal with other producers to reign in ballooning output.

“We continue to believe that if prices were to be artificially supported with production cuts it would only give more expensive forms of production more room to breathe and would only solve the problem in the short term,” Phillip Futures said in a note.

Iran is exporting 1.3 million barrels per day (bpd) of crude oil, and will be pumping 1.5 million bpd by the start of the next Iranian year on March 20, a vice-president was quoted as saying on Saturday.

Iran will load 4 million barrels of crude oil on tankers destined for Europe in the coming 24 hours, a senior official was quoted as saying.

 

 

 

ECB in talks with Italy over buying bundles of bad loans

The European Central Bank is in talks with the Italian government about buying bundles of bad loans as part of its asset-purchase program and accepting them as collateral from banks in return for cash, the Italian Treasury said.

The move could give a big boost to a recently approved Italian scheme aimed at helping banks offload some of their 200 billion euros ($225 billion) of soured credit and free up resources for new loans.

Nonetheless, it would likely fuel a debate in other countries about whether the ECB is taking on too much risk by buying asset-backed securities (ABS) based on loans that have not been repaid for roughly three months.

Italian Treasury officials told reporters the ECB may buy these securities as part of its 1.5 trillion euros asset-purchase program or accept them as collateral from banks in return for cash, in so called repurchase agreements.

The ECB declined to comment.

In November last year, an ECB source said that buying rebundled non-performing loans could be an extreme option if the euro zone’s economic situation became “really bad”. The bank has been struggling to revive inflation and is likely to cut its deposit rate again next month.

Italy’s high stock of bad loans has been a drag on the euro zone’s third-largest economy and is a growing concern for investors, who have been selling shares in Italian banks heavily since the start of the year.

The ECB has been buying an average of 1.19 billion euros of ABS every month since November 2014, Datastream data showed, and prefers securities backed by performing loans.

Under existing rules, the ECB can buy ABS as long as they have a credit rating above a certain threshold, thereby ensuring it only buys high-quality securities.

It also likely means the central bank will only be able to buy senior tranches, which are the last ones to absorb any loss if the loans are not repaid.

This would limit the pool of Italian ABS the ECB could buy.

Italian banks, however, can help enhance the rating of their senior tranches by purchasing a guarantee from their government, which has an investment grade rating, provided that at least half of the junior tranches are sold.

Several other factors will play a role in determining the rating of these ABS, which have become rare since the U.S. financial crisis of 2008, making a comparison with previous issues difficult.

“Standard & Poor’s evaluation of previous deals secured by NPL collateral have typically depended on numerous factors, as different collateral types may pose unique risks,” the rating agency wrote in about the Italian scheme.

“Generally, our credit analysis has focused on ascertaining the expected timing of cash flows and net proceeds from the liquidation of the assets.”

($1 = 0.8905 euros)

 

Cancellation of Iran oil contracts’ presentation signals infighting

Iran’s cancellation of a conference when it had been due to unveil investment contracts to international oil firms signals that political feuding is disrupting plans to revive its energy sector.

Tehran blamed snags in obtaining British visas for Iranian delegates to the long-delayed conference, which had been scheduled to be held in London on Feb 22-24.

However, foreign oil executives say factionalized politics in Iran, where elections will be held later this month, appeared to explain the delay as the country seeks major investment following the lifting of international sanctions last month.

Iran’s new oil and gas contracts are a cornerstone of its plans to raise crude production to pre-sanctions levels of four million barrels per day (bpd), and the OPEC member desperately needs $200 billion in foreign money to reach the goal.

The sanctions imposed in 2012 over Iran’s nuclear program have lost it billions. Tehran now wants foreign firms to revive its giant but ageing oilfields and develop new oil and gas projects through joint ventures with Iranian partners.

The conference had been postponed five times due to the sanctions. However, this time domestic infighting over the structure of the oil and gas investments contracts seems to have prevented any announcement of the commercial terms.

“There are big internal clashes on the new contracts,” said a senior foreign oil executive. “The Iranians did not present us with a final contract until now, nothing was finally approved.”

The Iran Petroleum Contracts (IPCs) covering about 52 projects will have flexible terms that take into account oil price fluctuations and investment risks, a senior Iranian oil official told Reuters in November.

BP, France’s Total, Italy’s Eni and Russia’s Lukoil were among 135 firms that attended a Tehran conference in November to hear about the IPCs.

But executives expecting to see the model of the contract were offered only data on the fields up for investment and some general presentations about what the new deals might look like.

“It was clear that this conference was only for a domestic audience. I do not think they even approved the contracts yet,” said another foreign oil executive who attended the November conference.

HARDLINE OPPOSITION

Hardline rivals of pragmatist President Hassan Rouhani have strongly opposed the new contracts, saying they contradict the constitution which says Iranian natural resource reserves cannot be owned by foreigners. The hardliners also criticized a nuclear deal reached in 2015 that led to lifting of sanctions.

Trying to fend off criticism, Oil Minister Bijan Zangeneh rejected “illogical” calls for banning participation of foreign energy firms, insisting that the new contract models are not treasonable, Shana news agency reported on Tuesday.

Hardliners want a bigger say in the contract regime, under which the oil ministry will assign certain Iranian companies to become partners of the foreign firms, industry sources say.

One Iranian oil businessman foresaw more problems for Zangeneh and the National Iranian Oil Company (NIOC) following the elections on Feb. 26.

“The situation could be more difficult for NIOC and the oil minister for negotiations with the foreign companies after the parliamentary elections, because there is a lot of pressure from the hardliners,” said an Iranian oil businessman.

“The hardliners don’t want to be sidelined from the decision-making in the oil sector. They want to have a share in the discussions.”

POLITICAL OPPOSITION

Easing economic sanctions and pulling Iran’s economy out of its current sorry state could help Rouhani’s backers in the elections to parliament and the Assembly of Experts, a body with nominal power over Supreme Leader Ayatollah Ali Khamenei.

“The government and especially the oil ministry have done their utmost to finalize the contracts before the elections,” a senior Iranian official told Reuters. “We need to regain our position in the market and therefore Iran needs to offer contracts that are better than other oil producing countries.”

Khamenei and his hardline allies will not allow Rouhani to gain too much popularity, particularly before the elections, another Iranian official said.

“People are tired and have high expectations. The government is trying to bind up wounds created by sanctions. Petrodollars are much needed and therefore the new oil contracts were prepared,” the official, involved in the process said.

“The committee for preparing the contracts finished its work. The contracts need some minor touches and the final approvals. But unfortunately political infighting is overshadowing the issue.”

Analysts say Rouhani’s political allies could benefit from an economic dividend.

“The news about attracting foreign investors will give hope to Iranians, to voters, who will reward moderate candidates at the ballot box. And this is something that hardliners are wary of,” said political analyst Hamid Farahvashian.

Farahvashian noted they criticized Rouhani’s announcement of deals worth billions of dollars last month on a trip to Italy and France. “The same applies for the oil contracts.”

NIOC’s Deputy head Ali Kardor has said foreign oil companies will still be invited in May to bid for the new deals.

“The conference had been repeatedly postponed. It is a clear sign of political disagreement inside the establishment,” said a senior Western diplomat in Tehran. “Hardliners know the economy is one of the main issues for people. They would not let Rouhani and his allies become more popular ahead of the elections.”

Hardline students gathered last week in front of the oil ministry to protest against the terms of the contracts.

“These are all politically-motivated protests. Zanganeh is a seasoned politician and a technical person,” said the first Iranian official. “He loves his country and more than anyone else believes in nationalization of oil in Iran. He has always protected Iran’s interests.”

 

 

Japan economy shrinks more than expected, highlights lack of policy options

Japan’s economy shrank more than expected in the final quarter of last year as consumer spending and exports slumped, adding to headaches for policymakers already wary of damage the financial market rout could inflict on a fragile recovery.

Gross domestic product contracted by an annualized 1.4 percent in October-December, bigger than a market forecast for a 1.2 percent decline and matching a fall marked in the second quarter of last year, Cabinet Office data showed on Monday. It followed a revised 1.3 percent increase in the previous quarter.

The data underscores the challenges premier Shinzo Abe faces in dragging the world’s third-largest economy out of stagnation, as exports to emerging markets fail to gain enough momentum to make up for soft domestic demand.

Abe sought to reassure markets that Tokyo is ready to stem excessive market volatility that could undermine the wealth effect delivered by his stimulus policies.

“As we have agreed at G7 and G20, sudden currency moves are undesirable. I want the finance minister to closely monitor the situation and respond with appropriate measures as needed,” he told parliament on Monday.

Market speculation of additional monetary easing simmers, although the Bank of Japan’s policy ammunition appears to be dwindling, analysts say.

“Private consumption is especially weak. The economy is at a standstill,” said Junko Nishioka, chief economist at Sumitomo Mitsui Banking.

“It’s a matter of time before the BOJ and the government will take additional stimulus measures,” she said, predicting the central bank will ease policy again as early as next month.

RUNNING OUT OF AMMUNITION?

With his stimulus policies that gave big manufacturers windfall profits, Abe had hoped to generate a positive cycle in which companies raise wages and help boost household spending.

Instead the data showed that private consumption, which makes up 60 percent of GDP, fell 0.8 percent, exceeding market forecasts of a 0.6 percent decline.

Since Abe took power three years ago, private consumption has shrank by roughly 1.5 trillion yen to 306.5 trillion yen ($2.7 trillion).

The economy grew an average 0.68 percent since Abe’s administration took office in 2013, below a 1.8 percent increase during the opposition Democratic Party’s three-year reign.

Offering some hope for policymakers, capital expenditure rose 1.4 percent, confounding market expectations for a 0.2 percent decrease.

But analysts doubt whether the economy will gain momentum in coming months, with the recent market turbulence and slowing Chinese growth clouding the outlook for corporate profits.

Exports fell 0.9 percent in October-December after rising 2.6 percent in the previous quarter, underscoring the pinch companies are already feeling from soft emerging market demand.

Domestic demand shaved 0.5 percentage point off GDP growth, while external demand – or net exports – added just 0.1 point.

Last month the BOJ cut a benchmark interest rate below zero, stunning investors with another bold move to stimulate growth.

But the shock move has failed to boost Tokyo stock prices or weaken the yen as Japanese markets remained at the mercy of a global equity sell-off.

 

Global shares rise as firmer Chinese yuan eases deflation fears

World stocks rose on Monday as China’s central bank fixed the yuan at a much stronger rate and oil prices held on to recent gains, easing fears of global deflation.

The rally belied a string of poor economic data from Beijing to Tokyo as demand for safe-haven assets waned, yet investors remained on edge as concerns lingered about global growth and the health of the financial sector.

European stocks rose 3 percent .FTEU3, having shed nearly 10 percent over the last fortnight, following a similar bounce in Asia. Futures pointed to notional gains of more than 1 percent on Wall Street ESc1 but U.S. markets will be closed for a holiday.
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Meanwhile, assets that tend to perform well in times of stress lagged. The Japanese yen lost ground against the U.S. dollar while top-rated German bond yields pulled away from nine-month lows hit last week. <GVD/EUR>

“We had a very strong statement from the Chinese authorities signaling they are committed to a stable currency and that’s helped sentiment … safe-haven flows have unwound somewhat,” said RIA Capital Markets strategist Nick Stamenkovic.

In China, spot yuan jumped more than 1 percent to 6.4934 per dollar – its firmest this year – after the People’s Bank of China set its daily midpoint 0.3 percent stronger and the head of the bank was quoted as saying speculators should not be allowed to dominate market sentiment. [CNY/]

A stronger yuan reduces the risk that China will export deflation to the world, while worries about consumer price growth have also been helped by a surge in the oil price late last week.

Brent LCOc1 and U.S. crude futures CLc1 edged lower on Monday but held on to most of a 10 percent surge from Friday that came amid renewed talk that the Organization of the Petroleum Exporting Countries (OPEC) might finally agree to cut output to reduce a world glut. [O/R]

DISCONNECT

China’s weak exports and imports in January, down 11.2 percent and 18.8 percent year-on-year respectively, seemed not to disturb markets. The resulting jump in the country’s trade surplus to $63 billion for the month might have helped, as that may offer support to the yuan.

The disconnect between markets and economics was perhaps starkest in Japan, where the Nikkei .N225 jumped more than 7 percent, putting its worst week since the depths of the global financial crisis in 2008 quickly behind it.

This came despite data showing the economy contracted by an annualized 1.4 percent in the last three months of 2015, more than expected.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 2.3 percent .MIAPJ0000PUS, after losing 10 percent of its value so far this year.

European shares followed in their wake, led by a 3 percent rebound in banking stocks .SX7P on news that the European Central Bank (ECB) is in talks to buy bundles of Italian bad bank loans as part of its asset-purchase program. [.EU]

Some strategists said Monday’s bounce may yet prove to be short-lived, with lower oil prices, capital outflows and economic weakness in China, and pressure on European banks, creating a dangerous cocktail for investors.

“It’s no surprise to see markets rebounding after the excessive movements seen over the last few weeks” said Riccardo Ambrosetti, chairman of Italy’s Ambrosetti Asset Management.

Indeed, the strong yuan fixing by the People’s Bank of China (PBOC) on Monday was seen by some traders as a move to deflect speculation about a possible devaluation that has been one of the main factors roiling global markets.

PBoC Governor Zhou Xiaochuan said there was no basis for the yuan to keep falling in a weekend interview, and China would keep it stable versus a basket of currencies while allowing greater volatility against the U.S. dollar.

Against a basket of currencies .DXY, the dollar was up a shade at 96.363 having been at its lowest in almost four months. Likewise, it edged up to 113.75 yen JPY=, having touched a 15-month trough just under 111.00 last week.

The euro was last down 0.6 percent at $1.1194 EUR=, having slipped from a 3-1/2 month peak of $1.1377.

Gold XAU= eased to $1,210.50 an ounce, after enjoying its best week in four years as investors fled riskier assets.

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Our finance professionals are responsible for our organization’s fiscal integrity and the clear reporting of our results. Working in this team, you’ll provide financial reporting that is accurate, consistent and compliant with global financial policies and principles, and local statutory rules and regulations.

Human Resources

Our human resource professionals develop and execute our people strategy, making them instrumental to our plans. Working with them, you’ll help provide the programs, measures and tools that assist our employees in achieving their personal and professional goals.

Knowledge

As part of our knowledge team, you’ll make sure our client-serving professionals have access to the right people, tools and information to help their clients meet their business needs. The knowledge team provides a wide range of services to better understand client businesses and business environments; create and manage organization-wide business tools and processes to share important information, and advise people and teams on how to use content and tools effectively.

Accounts, Industries and Business Development

Become a key member of our business development team, identifying potential new clients, developing major accounts and keeping the sales pipeline active. You’ll need to think on your feet, adapting to changing client requirements. Your experience of account management will mean you deal with high profile clients confidently – and you’ll really care about client satisfaction, going the extra mile when required.

Marketing

Developing your marketing career at EY, you’ll work with some of the most astute practitioners in professional services, who’ll challenge and stimulate you to produce your best. Your colleagues will value your strategic input and respect you for your expertise. They’ll look to you to deliver practical results and demonstrate the ways in which marketing adds real value to our growing business.