Orange Juice Markets

1653 Words 7 Pages
Financial Market
The financial market includes markets in which funds are transferred from people who have an excess of available funds to people who have a shortage.
• With weather being around freezing through parts of Florida analysts are worried that Orange Juice corp. will suffer. The orange juice future rose 10% in the past week. Traders are still anticipating a short production because of a disease and fruit sizes being smaller than usual.
• After the deep water horizon disaster, oil sales are finally returning to the Gulf. Deep-water wells are 25% more expensive today than in 2010 and can cost up to $300 million each but have the capacity of 900,000 barrels a day. Exxon Mobil and Chevron combined have more oil and gas output than California.
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Without the transferring of goods and services, the flow of money would cease to exist. Trading of stocks, bonds and commodities continue to build our economy one trade at a time.
Central Bank & Monetary Policy

The monetary policy is the management of money and interest rates which is used within central banks. Central Banks are a government institution that has responsibility for the amount of money and credit supplied in the economy as a whole.
• United States and European bonds are becoming a safer option while interest rates in China are just beginning to cut interest rates. Low global bond rates are making bonds in the US more attractive because they’re on a higher yield.
• The United States government bonds have risen since global interest rates have been lowering. The government wants to ensure that investor’s confidence in the Federal Reserve isn’t going to give in to the higher interest rates like the rest of the world.
• Higher interest rates make newer bonds more attractive to buy which causes the value of existing bonds to fall. The chairman of Cumberland Advisors in Sarasota, Fla., discusses that the bond market needs to adjust and make higher yields. The United States just needs to be careful because yield rates have increased .3% in three
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US Judge stopped short of holding Argentina in contempt because it wouldn’t help their economy and their creditors reach a settlement.
• Mr. Weidmann, a German Bundesbank President makes some comments about the European banks which expose some issues that could signal a combative tone. In IMF meetings, it could raise tensions about the global economy. Weidmann states that the monetary policy is at risk, especially in euro areas.
• The BOJ is outreaching to other countries to try and modify Japan’s financial markets. They will try a trade known as cross-currency repurchase agreements that could put their foot in the door for a better position in global regulations and to have higher quality collateral.
• Long-term treasury bonds are more vulnerable to sharp price swings than a junk bond. Through June 2, junk bonds have brought in $6.6 billion in funds because you’re less likely to be thrown off a cliff because bond funds can lose value more frequently.
• A suffering California toll road sells $1.4 billion in bonds at the perfect time. People are stretching to get a little more yield with their bonds and the toll road bonds are a risky bet that investors have been waiting

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