Interim Internship Report

The economy in which HMV Group plc operates and trades in is subject to constant changes in interest rates, exchange rates, inflation, unemployment levels, tax rates, economic growth, and income rates. All of these will affect trading for HMV Group, and if enough attention is paid to the economic environment the changes can be closely predicted and HMV Group can plan for them more efficiently. For example, if the strength of the pound was to increase, international trade may decrease because HMV Group’s products will become dearer.

The exchange rates risk that is associated with economic, transaction, and translation exposure in Indian market. From the analysis, anticipate the fluctuations that seem to occur in the next 24 months

In the similar time period Japanese Yen has been in the third position with a turnover position of 20.8% in the year 2005. The overall financial market currency structure has seen a decline in the turnover position of the US Dollar to 85% from a strong position of 88%. Similarly a decline has been in the position of the Japanese Yen to 17.2% from an acceptable turnover position of 20.8%. While considering the trend of these two currencies during the period starting from 2007 and ending at 2010, it is to be noted that minute changes were seen in the two different currencies with regards to their share in foreign currency market. The US Dollar witnessed a continued fall to 84.9% from its previous 85.6% however, the Japanese Yen saw a rise from its previous position of 17.2% to an increase of1.8% that is 19%. During the same time period the US dollar and Japanese Yen were the second most traded paired currencies and was traded at around 14% of the overall foreign currency market second to the US Dollar and Euro pair. Conclusion The foreign exchange market has seen considerable changes owing to the global financial crisis. It is to be seen how different factors like economy and global politics further impact strong currencies like the US Dollar and other competing currencies such as the Japanese Yen.

IntroductionThe trading of company stock to the public has been going on for many, many years. Over the years the supply chain for buying and selling equity stock has changed with innovations in technology. Today, the old brick and mortar environment of equity trading is being replaced by virtual trading through websites like Ameritrade, E-Trade, and Trade Station.

Five years ago, the biggest thing in economic and international news was the introduction of the new European currency, the Euro, into circulation and into the pockets of the consumers of the participating countries within the European Monetary Union. In an attempt to unite Europe and to form a dominant currency to rival the US dollar, Europe locked their exchange rates and went full steam with this plan. Unfortunately, for many of the European countries, what seemed to be the end all for European economics, quickly unraveled the inherent reality of the fundamental macroeconomic flaws in the European monetary system that may cause its downfall and deficit policy that could lead to its utter

The performance of a stock market is usually associated with the movements in the exchange rate because of its influence on the stock price of a firm. The foreign exchange market is a place where trading of international currencies occurs between many buyers and sellers around the world. Any fluctuations occur in the currency rate can influence the business activities between two different countries. For example, a strong home currency can leads to the firm’s profit when doing business in the country which have a weak currency rate.

Variability in exchange rate is a major source of macroeconomic uncertainity affecting firms. After the 1970 's, the rapid expansion in international trade and adoption of floating exchange rate regimes by many countries led to increase exchange rate volatility. The firm 's exposure to exchange rate risk increased.

Since the great depression, the global economy has been facing a number of ups and downs. With the markets being built rapidly and crashing down in the other instant, elements that actually make up the skeleton of the international economy seems to have correlated variables. These variables seems to have been correlated with each other in numerous combinations and their correlation is what makes the market fluctuate. The volatility of the global market becomes more apparent in times of recession when the correlation between variables like stocks, bonds, US dollar, Euro, gold and oil becomes more apparent. Therefore, it is of paramount importance that these correlated variables should be studied with a very keen eye. Since the link between currencies, commodities, stocks an bonds runs very deep, change in any one of them seems to have a profound impact on the rest hence changing the face of the market.

For my paper, I wanted to analyze the validity of the Efficient Market Hypothesis and evaluate patterns in trading. As an investor, one of the fundamental measures that I use is the tendency of commodities to follow seasonal patterns due to the nature of planting and harvesting periods, supply/demand, and general weather patterns which all impact the price of commodities. The purpose of this study is to investigate the existence the effect in investment returns for different markets.

In this report, we will take a closer look at Britain’s strategy to not adopt the euro currency, and the possibility of adopting the euro in the future. To do that, we must first make a better understanding of the benefit of using the single euro currency.

Like the other currencies mentioned in the report, the Japanese Yen (¥) also adopts a floating exchange rate. As this is a short term forecast of the Australian Dollar (AUD) against the Japanese Yen (JPY), a chartist approach will be taken to analyse the movements of the two currencies. The technical method and the effects of the government are the topics that will be analysed for this short run forecast (Moffett et al, 2006 p.136). As of the 1st of September 2010 the Australian Dollar $1 = Y75.93.

The purpose of this paper is concentrated on relationship between Vietnamese stock price relative to exchange rate and United State stock market. In order to have a better view about this relationships, the suitable econometrics model will be used in the research are OLS and ARMA. To determine the correlation, coefficients among the variables from the test we will be able to find out the β, R2, P-value, Standard Error, Durbin-Watson stat statistic etc... With the time series dataset, in other to get a good forecast, the regressions will be run and tested on EVIEW program. The main model will be use is:

Since the Greece's debt crisis happened, the Euro zone has to confront with a huge sovereign debt crisis, like governments' debt increased, bond yield spreads widened, Euro exchange rate fell as well, which caused that the whole international financial markets gradually lost the confidence. The purpose of this essay is to discuss the impact of this crisis both on foreign exchange and derivative markets. And the rest words is to analyse several possible reasons why this small economy could trigger such a wide impact on global financial markets, in which contagion can

Issues in relation to Euro financial crisis have been essential in generation of intriguing questions of whether the common currency will have the substantial strength and competence towards surviving and overcoming the threat. Euro zone members should focus on striving to hold things together and weather the storm with reference to recent financial challenges in association with the common currency. Eurozone continues to face diverse economic as well as financial problems. In the first instance, the region faces fiscal crisis, which has been imminent in Greece and other nations such as Ireland. In addition, the region has been facing competitiveness crisis, long evident in the large current account deficits, and larger current account imbalances between European Union. In the third instance, the region faces banking crisis, which unfolded in Ireland prior to becoming acute in Spain (Fred 3).

The Euro is the most important event for the global financial markets since the United States left gold and started backing the dollar in 1971. The Euro is now facing a dropping in value that may or may not predict our world’s future economies. I am going to inform you on the effects of the Euro through its history and making, and the effects it plays on European and the United States economies.