Contagion May Force EU to Expand Arsenal to Fight Debt Crisis

Investors’ no-confidence vote in the aid package for Ireland may force European policy makers to expand their arsenal to fight the debt crisis threatening to tear the euro apart.

Cuts in Social Security, Income Taxes Part of Obama's Debt-Panel Proposal

A new plan by the co-chairmen of President Barack Obama’s deficit-reduction commission would reduce income tax rates while ending many tax credits and expenditures, impose spending caps and salary freezes on the federal government and cut health care costs.

Productivity in U.S. Rises More Than Previously Estimated

The productivity of U.S. workers rebounded more in the third quarter than previously estimated, showing companies were focused on controlling costs.

U.K. Manufacturing Expands at Fastest Pace in 16 Years Amid Export Orders

U.K. manufacturing growth unexpectedly accelerated to the fastest pace in 16 years in November as export orders climbed.

Fed to Name Recipients of $3.3 Trillion in Aid During Crisis

The Federal Reserve, under orders from Congress, plans today to identify recipients of $3.3 trillion in emergency aid the central bank provided as it fought the worst financial crisis since the Great Depression.

Japan Likely to Scale Back Plan to Cut Corporate Taxes on Deficit Concern

Japan may scale back a plan to cut the corporate tax rate by 5 percentage points because of concern it will increase the government’s deficit, a move that could limit growth in companies’ profits and investment.

Manufacturing in U.S. Probably Grew for 16th Month

Manufacturing in the U.S. probably expanded for a 16th consecutive month in November, a sign the world’s largest economy is gaining traction as the year draws to a close, economists said before reports today.

Roubini Sees European Financial Contagion Spreading Into Portugal, Spain

Europe’s debt woes are at risk of spreading to Portugal and Spain, and rising budget deficits in the euro area are a concern, saidNouriel Roubini, the New York University professor who predicted the global financial crisis.

Indonesia's Credit Rating Put on Review for Possible Upgrade, Moody's Says

Indonesia’s credit rating may be raised by Moody’s Investors Service as growth and improving debt levels prompt upgrades of emerging markets. Stocks and the rupiah rose.

Ireland Loan From London Pains Belfast Republicans Ruing `Days of Empire'

Dan Murphy spent almost eight years in jail for bombing a British Army base in Belfast, part of his fight to sever the U.K.’s ties with Ireland.

British Housing Market Faces a `Tough Year,' Countrywide Says

U.K. home prices may fall by as much as 5 percent next year as the government raises taxes and cuts jobs to reduce the record budget deficit, the country’s largest property broker said.

Employers in U.S. Announce Most Job Cuts in Eight Months

Employers in the U.S. announced plans in November to cut 48,711 jobs, the most in eight months, as government agencies trimmed payrolls.

European Contagion Spreads to Region's Core as Belgian Bond Yields Surge

Europe’s sovereign crisis is spreading to the heart of the 16-nation bloc as investors question Belgium’s ability to cut the euro region’s third- highest debt load, overshadowing its economic performance.

Europe Manufacturing Grows at Fastest Pace in Four Months, Led by Germany

Europe’s manufacturing industries expanded at the fastest pace in four months in November, led by Germany, the region’s largest economy.

Stocks Buyback as Penalty

Some information I would like to share about shares buyback through a remiser’s service so we are able to learn and don’t make the same mistake. There are 2 types of buybacks, one is a company privatization, and another term of buyback is when your remiser over traded what you have. The remiser of your DO NOT know how many stocks unit you are holding, neither do they know about how many accounts you hold from different investment banks (it’s against their policy). When you trade a stock unit, make sure you understand how many units you would like to trade and confirm with that remiser of yours on how many units you actually have before trading. If you have 1000 units in a particular stock, the remiser can actually trade 5000 units for you. If you have missed out on this, you would have to bear the penalty of 5000 units, even there is a short fall of 4000 units.

The penalty price depends on the cost per unit of the shares. For example, a stock price of RM5 per unit will earn you 0.05 cents penalty charge every 100 units held by you; RM10 per unit will make you even poorer by 0.10 cents; penny stocks will be half a cent. If you have 1000 unit on hand, and your remiser over traded (*be at your fault) another 9000 units, you will have to bear the consequence of 10000 units penalty. Penalty goes in 100 units – 10000 units of a RM5 p/u share means you have to pay a penalty of RM5 increase is a stock cost price.

Your initial purchase for a particular stock was RM6K with 1000 units. Today you sell your stocks at RM6 p/u assuming you don’t make or lose on price fluctuation, service charges, stamp duty and clearance; on the clearing day (T+3) say stocks price shoot up to RM7, you have got to bear RM7+5 (this is the penalty for 100 lots of over traded stocks) which is RM12. The company charges you RM12 p/u for the penalty. Your remiser traded 10000 units for you at RM6 which earns you RM60K. But your shares penalty cost is RM120K.

The balance value of over traded stock cost minus deduction of shares penalty cost will make you lose (RM60K-RM120K) RM60K. You don’t lose all of this 60K because this is the loss amount of 10K units, you only have 1K units, which made you lose 6K. Not forgetting, when you are being charged at a penalty, you have got to bear the clearance fee of 0.03% and stamp duty of RM1/RM1000 traded. There is no remiser fee.

Basically you will lose the whole investment cost of RM6K after paying the whooping hefty penalty. Depending on the amount of over traded shares and fluctuation on the clearance day.

Remiser is like a sole proprietor, they do not have a boss and just work on their own, so you can’t complain to anyone if your stocks were over traded. One good way to avoid this scenario is to trade shares on your own using M2U (Shares Investment Center). You may want to forward to relevant party if they are into the stocks market. I only get to talk to a remiser from Maybank Investment Center – and this applies only if you are using a remiser service.

Note: The values and figures used here is an example only. Information was retrieved from a remiser.