Bill Gross still hates negative interest rates

There isn’t any new information in his latest monthly commentary as he continues on the negative aspects of zero interest rates and negative rates. But at least he doesn’t talk about sex anymore…

I and others however, have for several years now, suggested that the primary problem lies with zero/negative interest rates; that not only do they fail to provide an “easing cushion” should recession come knocking at the door, but they destroy capitalism’s business models — those dependent on a yield curve spread or an interest rate that permits a legitimate return on saving, as opposed to an incentive for spending. They also keep zombie corporations alive and inhibit Schumpeter’s “creative destruction” which many argue is the hallmark of capitalism. Capitalism, almost commonsensically, cannot function well at the zero bound or with a minus sign as a yield. $11 trillion of negative yielding bonds are not assets — they are liabilities. Factor that, Ms. Yellen into your asset price objective. You and your contemporaries have flipped $11 trillion from the left side to the right side of the global balance sheet.

Source: Janus

Stocks in the news (beauty, bkd, chewa, cho, cpall, focus, glow, pstc, ptg, rjh, sgp, siri, tgpro, thai, tluxe, tm, yuasa) 01.09.16

BEAUTY
BEAUTY expects 2016 revenue and profit to be a new high due to revenue growth of more than 45% in 2H16. It is negotiating with a partner to set up distributorship in Hong Kong and Taiwan; it expects the deal to be concluded in 4Q16. It expects revenue growth of no less than 20% for the next three years. (Kao Hoon, 01/09/16)
Comment: I have sat down with management and I suspect they just got lucky with the international business. Regardless its still growing and growing and growing
 
BKD
BKD will ask its board for approval to sell land for Bt500mn. It plans to take part in Bt1.5bn in bids. It expects 2016 revenue to grow not less than 20%. (Thun Hoon, 01/09/16)
CHEWA
CHEWA is confident that 2016 revenue will grow 20% from last year supported by backlog of more than Bt300mn waiting to be booked and transfers of more than Bt1.3bn. It plans to launch two projects in 2H16 valued at Bt1.94bn. (Kao Hoon, 01/09/16)
CHO
CHO expects 2016 revenue growth of more than 10% backed by backlog of Bt586mn, with Bt310mn of this booked as revenue this year. It has a new job worth Bt300mn and expects to sign the contract and book revenue this year. It has budgeted Bt800mn to expand by eight fullservice maintenance centers. (Kao Hoon, 01/09/16)
CPALL
CPALL expects SSS growth to reach 3-5% brought by 7-Eleven stamp campaign and higher purchasing power from better farm income. It targets 12,000 branches within three years, with plans to open 420 stores this year. It expects a better margin from high margin products. (Thun Hoon, 01/09/16)
Comment: And just wait for the MAKRO turnaround + debt reduction 
 
FOCUS
FOCUS is talking to a prospective partner in France to take over a waste management business and expects to invest in the power business. It expects 2016 earnings to be good and for revenue to be higher than last year. It expects to take part in Bt800mn bids, of which it expects to get 50%. (Thun Hoon, 01/ 09/16)

Continue reading Stocks in the news (beauty, bkd, chewa, cho, cpall, focus, glow, pstc, ptg, rjh, sgp, siri, tgpro, thai, tluxe, tm, yuasa) 01.09.16

FTSE Index Changes

Several brokers sending this out this AM

FTSE Global Equity Index Series Asia Pacific ex Japan Regional Index and Japan Regional Index Semi-Annual Review.  
Constituent changes can  be accessed via the attachments below.  The changes will be effective after the close of business on Friday, 16 September 2016 (i.e. on Monday, 19 September 2016).

Large cap
Inclusion: SCC-R, KBANK-R
Exclusion: none


Mid cap
Inclusion: BEM

Exclusion: none

Small cap
Inclusion: GPSC, VIBHA, IMPACT
Exclusion: BEM, THRE

FTSE All-World
Inclusion: SCC-R, KBANK-R
Exclusion: none

FTSE AllCap
Inclusion: SCC-R, KBANK-R, GPSC, VIBHA, IMPACT
Exclusion: THRE