February, 2012:

As with the popularity of a bad smell, the banks’ reputation doesn’t look to be improving any time soon.

And with the media reporting today that Barclays – one of the more profitable UK banks – has been cleverly avoiding tax to the effect of £500m, any improved perception of banking by the populous is clearly a long way off, or at best not helped.

It wouldn’t matter as much, perhaps, if chief executive Bob Diamond hadn’t once laboured how he once kicked out thirty members of staff for breaking his ‘new ethics rules’, citing too much greed as a problem. Obviously, though, it would. It just might not leave as bad a taste with those who enjoyed the proposals.

The spread trading market this morning feels indifferent about the news, however, with the stock switching between gains and losses in-line with the broader market in early trading.

In fact, Barclays continues to outperform having rallied more than 50 percent in just over two months, something more commonly seen from the more risky small-caps than banking behemoths.

So, the market plainly likes Barclays. But to any participant with a keen memory and a pinch of cynicism, just because a security can be seen to have recovered from being unnecessarily cheap does not mean it will continue to become less cheap or indeed expensive. Proceed with caution.

Article by Spreadex.

CFDs, Forex and Financial Spread Trading carry a high level of risk to your capital and can result in losses larger than your initial stake/deposit. These forms of trading may not be suitable for everyone so please ensure you fully understand the risks involved. Where necessary, seek independent financial advice.

This BillionforGovernor.com is only intended for those persons of 18 years of age or older.

European officials will attempt to settle the remaining differences for the €130bn Greek Bailout today as America is off for Presidents Day.

Over the weekend China cut its Reserve requirement ratio by 0.5%, boosting its lending capacity by up to Yuan 400Bn.

Optimism that a deal will be struck with Greece, on top of Chinas commitment to boost the EFSF if necessary is helping the spread trading markets to open higher this morning.

Sentiment seems to be high as investors seem encouraged that the proposed €130 bailout will come through, however it could be argued that the deal is now priced in so it will be interesting to see how much more strength this rally has.

Article by Spreadex.

CFDs, Forex and Financial Spread Trading carry a high level of risk to your capital and can result in losses larger than your initial stake/deposit. These forms of trading may not be suitable for everyone so please ensure you fully understand the risks involved. Where necessary, seek independent financial advice.

This BillionforGovernor.com is only intended for those persons of 18 years of age or older.

The shares spread trading markets response to Barclays’ results this morning has not been as positive as the announcement first appeared.

In the context of the current economic climate and monetary intervention, banks have had their reputations slammed and their business models shackled.

But Barclays – a bank not owned by the tax payer without a choice – showed some clear positives in today’s results.

First, and most importantly, the bank made a profit of £5.88bn, which, admittedly, was down from last year and worse than forecast.

And second, its Tier 1 capital ratio has strengthened significantly.

So, for its publicly traded stock, which traded at 50 pence in the pound in respect to its price to assets as recently as September last year, this is a very confident step in the right direction.

In a land where some of its peers are diluted and government backed, Barclays remains one of the few large British banks capable of autonomous function. The increase of total income should allude to the bank’s potential advantage should a recovery ensue with haste.

Article by Spreadex.

CFDs, Forex and Financial Spread Trading carry a high level of risk to your capital and can result in losses larger than your initial stake/deposit. These forms of trading may not be suitable for everyone so please ensure you fully understand the risks involved. Where necessary, seek independent financial advice.

This BillionforGovernor.com is only intended for those persons of 18 years of age or older.