CommStock Israel Investor
Insights Newsletter
Monday, February 2, 2009
We are pleased to advise that effective February
1st 2009, our Fund is being hosted with Altshuler
Shaham, (http://www.invest-as.com/)
one of Israel’s leading brokerage
firms.
The name of our Fund has now been changed to Altshuler Shaham
(6F) Commstock Commodity Fund No. 5107966
Our fund is up 9.43 % for January 2009.
We believe that with our new association with
Altshuler Shaham we will be able to provide our customers with
the required level of expertise needed to traverse the difficult
financial challenges ahead.
David Zwebner, CEO
CommStock Trading Ltd.
Tel: +972-(0)2 624-4963
Fax: +972-(0)2 624-4876
www.ecommstock.com
1) Rollout of rescue package delayed
Details of Obama's massive financial rescue
plan will be delayed by a week.
By Ed Henry, CNN senior White House correspondent
Last Updated: January 31, 2009: 3:01 PM ET
WASHINGTON (CNN) -- After initially vowing to unveil
a new financial rescue package this coming week, senior officials
in President Obama's administration now say the rollout date is
being pushed back an extra week.
It is a sign of just how difficult it may be to craft
such a massive plan -- especially while the White House is simultaneously
trying to sell a separate $819 billion economic stimulus plan.
Two senior administration officials told CNN Friday
that the full rescue plan, which is being put together by Treasury
Secretary Timothy Geithner and other top economic advisers, is
now expected to be unveiled the second week of February.
But the officials held out the possibility that Geithner
could start dribbling out some aspects of the rescue plan this
coming week. In his weekly radio address
Saturday, Obama said, "Soon my Treasury secretary, Tim
Geithner, will announce a new strategy for reviving our financial
system that gets credit flowing to businesses and families."
Officials said the plan will include a crackdown on
bonuses and other compensation for companies that receive federal
bailout money.
Obama lashed out this week at Wall Street firms that
handed out more than $18 billion in bonuses last year, calling
it "shameful" that they did that while teetering on bankruptcy
and seeking federal handouts.
White House Senior Adviser David Axelrod told Bloomberg
TV on Friday that "limiting some of this executive compensation" is
important to help sell the broader financial rescue plan to the
American people.
That broader plan could include a so-called "bad bank" set
up by the federal government to buy up troubled assets from faltering
banks, according to the senior administration officials.
The plan is also expected to include provisions dealing
with the foreclosure crisis to help taxpayers restructure their
mortgages to stay in their homes.
2) Commentary by David Zwebner, CEO of CommStock
Trading
U.S. Economy
The U.S. Commerce Department said that real GDP was down an annual
rate of 3.8% in the fourth quarter, the worst quarter in 26 years,
but not as bad as expected. From a year ago, real GDP was down
.2% and nominal GDP was up 1.7%.
The University of Michigan's index of consumer sentiment
increased from 60.1 to 61.2 in January, a little weaker than expected.
The December eurodollars fell .125 to 98.45, the lowest close in
three weeks.
The Chicago purchasing managers' index fell from 35.1
to 33.3 in January, weaker than expected.
The U.S. Labor Department said that the employment cost
index was up .5% in the fourth quarter, less than expected.
Grains and Cotton
The USDA said today that Japan bought 213,360 tons of U.S. corn.
March corn ended down 2.75 cents at $3.79.
According to Dow Jones Newswires, Argentina's soybean
crop will have chances for scattered showers early next week. March
soybeans were up 9.5 cents at $9.80.
Lumber
Surprisingly, March lumber closed up its $10 daily limit at $148.10,
partly helped by today's positive GDP report and the short-covering
that likely followed.
Metals
April gold jumped up $21.90 to $928.40, the highest close in nearly
six months, with ongoing support from low interest rates and
poor overall economic news. Also, Wednesday's Federal Reserve
Statement suggested that the Fed is willing to print money.
Energies
March crude oil finished up .24 at $41.68 with some encouragement
from today's better-than-expected GDP report.
Currencies
Statistics Canada said that real GDP was down .7% in November and
down .8% from a year ago. The March Canadian dollar closed down
.45 at 81.34.
Eurostat reported that the unemployment rate for the
Euro area 15 increased from 7.9% to 8.0% in December, the highest
in over two years. Also, consumer prices were estimated up 1.1%
in January from a year ago, down from a 1.6% annual gain in December.
The March euro fell 1.69 cents to $1.2784.
Japan is having a tough time. The government said that
the unemployment rate increased from 3.9% to 4.4% in December.
Household spending was down 4.6% in December and industrial production
was down 9.6% in November, the biggest monthly decline since records
began in 1953. The March yen was down .0004 at 1.1138.
Japan's Statistics Bureau said that consumer prices
were up .4% in December from a year ago.
The March Australian dollar dropped 1.79 cents to 63.36
with expectations that the Reserve Bank will cut the interest rate
when it meets on Tuesday.
Mona Liss
CommStock Trading Ltd
PO Box 7777
Jerusalem 91077
Tel: +972-2-6244963
Fax: +972-2-625 9515
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