Viewing entries tagged with 'Australia'
Press Release Friday, 10 May 2013
In a vote of confidence for New Zealand’s capital markets, BBY Limited (“BBY”) Australia’s largest non-bank owned full service stockbroker, has announced that it has expanded its presence in New Zealand by acquiring a controlling shareholding in Edge Capital Markets Limited, a privately owned broking firm specialising in the Futures and FX markets. The acquisition will allow the firm to expand its equities research and advisory services, and develop a stronger investment banking profile.
“BBY’s entrance to the New Zealand market enables us to add value to a new client base from which we expect strong growth” says Glenn Rosewall, Executive Chairman of BBY. “New Zealand is a logical next step for BBY as the sale of state assets and the growth in KiwiSaver will see increased public interest, depth and activity on the NZX.”
The existing NZ principals and management will retain a significant shareholding in the new operation, which will be renamed BBY (NZ) Limited, and operate as a subsidiary of BBY. The current executive management of Bryn Griffiths and Brent Weenink will be retained as Regional Head and CEO respectively, and will be joined on the Board by BBY’s Glenn Rosewall (Chairman) and Arun Maharaj.
“BBY through its extensive licensing will have the opportunity to offer one of the broadest base of products available toNew Zealandprivate investors and institutions. This includes international equities, options, bonds, futures, CFDs, margin-FX, Foreign Exchange, commodities and precious metals trading.” says Arun Maharaj, CEO of BBY “Having a New Zealand operation means we complement our Australian, UK and US teams with market information flowing around the world seamlessly.”
Bryn Griffiths was pleased with the acquisition, “We have enjoyed a close working relationship with BBY for many years, and this is a natural and positive step forward for us and our clients. The Company is well placed to grow its advisor base, develop and deliver new services and opportunities in the New Zealand market.”
For further information, please contact:
Executive Chairman, BBY Limited
Tel: (02) 9226 0032
CEO, BBY Limited
Tel: (02) 9226 0108
Marketing Manager, BBY Limited
Tel: (02) 9226 0098
Regional Head, BBY (NZ) Limited
Tel: (04) 910-1611
CEO, BBY (NZ) Limited
Tel: (04) 910-1610
BBY is a proudly Australian & New Zealand independent financial services group and Australia’s largest non-bank owned stockbroker. BBY has offices and staff in Sydney, Melbourne, Perth, Adelaide, Gold Coast, Auckland, Wellington, London and New York. With an extensive global reach, BBY is able to service the local and international needs of high growth companies, institutional investors, broker dealers and private investors.
Today, BBY is one of the fastest growing, securities firms in Australia and New Zealand with an average of $100 million per day turnover on the Australian Stock Exchange (17th by market share, 2nd by options market share). BBY also ranks as the 4th Best Equity Capital Markets Bank in Australia according to the 2012 East Coles Survey.
Furthermore, BBY has stayed ahead of the curve by not only educating its client, but also by sourcing the best platforms on offer around the world. BBY Online, BBY Investing and BBY Education currently offer Australia and New Zealand’s largest range of tradeable instruments.
BBY has a wealth of Australian and international institutional clients with over $2 billion worth of capital raisings completed in the last 5 years.
This is one of my dead set favourite trades.
Since the onset of the GFC the Australian dollar has appreciated against the EUR, almost doubling in value as the market sought refuge from the beleaguered EuroZone and finding haven in the high yield, proxy to China growth, AAA rated Australian dollar. What an incredible run.
However late last year things began to change with the Troika providing enough funds, and therefore time, for the EuroZone politicians to make the required fiscal changes i.e. labour market, pension reform etc. Meanwhile the RBA forecast an earlier peak in mining investment and resumed cutting rates.
It is my belief that the NZD and AUD currencies are vulnerable to their own success of the last few years (the cure for a high currency is a high currency – eventually it’ll hurt). I think too that Eurozone data will surprise to the topside in as much as it surely can’t get worse.
Technically the picture looks intriguing. We had the ‘head and shoulders’ break down below the neckline and then, as so often happens the retest. Now we look likely to resume the move that should head towards 0.7000
I have been a fan of NZ’s prospects over that of Australia in recent times given the Canterbury rebuild and a number of droughts around the world keeping NZ’s soft commodity prices elevated compared to that of Australia’s hard commodities. The strategy has given a couple of nice runs higher to trade on the NZD/AUD cross but recent data has abruptly turned that around.
Today’s very weak Retail Sales data, coming hot on the heels of the shocking 13 year high in NZ Unemployment, may see built up long NZD/AUD positions liquidated in coming sessions.
My modelling analysis worked very well today capping the recent bounce in the cross at 0.7860 versus the model sitting at 0.7870/92. The model is splayed wide which is suggestive of a strong move underway and the readings are dropping very quickly. That means selling NZD/AUD around here may have its risk mitigated very quickly, say within 2/3 days.
The daily chart is suggestive of a forthcoming test of one year support at 0.7745. A break of that level could get very ugly indeed.
No one expects that the RBNZ will need to cut because they think the boost from Canterbury will be ‘real’ in the RBNZ’s own words but if the world sinks a little again, we get another decent jolt delaying the rebuild.
There is no doubt that world growth is slowing and early indications are that China too is slowing at a much faster rate than has previously been anticipated.
In this environment, the one currency that looks the most vulnerable to me, is the Australian Dollar (AUD). Over the last 4 years the Aussie has been a huge beneficiary of major investment flows given it’s relatively high yield, its position as a proxy for Chinese growth and its AAA sovereign rating. The ‘long’ positions must be enormous.
In November the RBA started cutting interest rates. To date they have cut a full 1% off the cash rate from 4.75% to 3.75%. During this time the RBA have remained relatively upbeat stating that although the economy was clearly ‘two speed’ (East Coast retail, finance and housing industries very weak – West/North mining booming) the spend from on-going mining investment (capex) would hold the economy in good stead. However, in the last speech on record, the RBA noted that the flow through from mining hadn’t supported the economy quite as much as they expected. Hot on the heels of that significant statement the giant corporate BHP advised that their proposed $80 billion capex program was to be pared back as they saw demand for their products waning. Not good, the last bastion of Aussie growth being undermined (pun intended).
Thus more rate cuts look likely in Australia over time. Contrastingly, whilst the data out of New Zealand has been soft of late, the hurdle to a RBNZ rate cut from the already ‘emergency’ setting of 2.5% looks very high. The likely fillip from the Canterbury situation certainly a major factor in that view. The NZD/AUD is historically very sensitive to a narrowing interest differentials. And this cross is a nice diversification away from pure AUD/USD if you’re already on that trend lower.
Technically the chart looks supportive of this view. The uptrend line off the ‘double bottom’ low of late last year looks to have held nicely this week.