Tag Archives: America

President Obama And Ryan Seacrest Interview

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President ObamaWe are a fan of President Obama here at Frost and we particularly enjoyed this interview the President did with Ryan Seacrest. In it he talks about his “Between Two Ferns” interview with Zach Galifianakis. Apparently, Zach was nervous and President Obama had not even heard of “Between Two Ferns” but his daughters had and were excited.

“Zach actually was pretty nervous, It was funny to watch because this whole ‘Between Two Ferns’ schtick — which I wasn’t familiar with before my staff told me that we had been pitched to do this — his whole character is to go after the guest, and I think he was looking around and seeing all these Secret Service guys with guns and thinking, ‘I wonder what happens here if I cross the line?’ But we had a great time.”

 

The interview was done to encourage young people to sign up for health care via HealthCare.gov. According to the U.S. Department of Health and Human Services the website saw a 40 percent boost in traffic after the interview.

“And as I said, I wasn’t familiar with this thing, but when I was at the dinner table with the girls and I said, ‘Well today I did something with Zach, it’s called ‘Two Ferns,’ I think,’ Malia was so excited, She had seen all the previous episodes, so I figured it was going to reach our target audience, which is a lot of young people, and it turns out we’ve had close to 15 million hits. And the amazing thing is afterwards people actually did link to healthcare.gov and people actually signed up for health insurance, so it ended up working, but I think I have to keep my day job.”

What do you think?

 

US Shutdown no cause for panic (yet)

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The US Government has begun its first partial shutdown in 17 years, following congress’ failure to agree a budget to continue its funding.

 

The S&P 500 closed down 0.6%, whilst the US dollar fell against sterling last night, as investors digested the news.  The market’s reaction to the shutdown has been muted and suggests investors are expecting a resolution to these negotiations.

 

Adrian Lowcock, Senior investment Manager at Hargreaves Lansdown says;-“Investors have become used to political brinksmanship in the US with negotiations going to the wire but each time a resolution has been found.

These negotiations are the warm up act. The bigger issue, in around 17 days’ time, is negotiations to raise the $16.7trn US debt ceiling. Failure to raise the debt ceiling and allow the US government to continue borrowing could force the country into a default scenario which could then have more serious consequences for investors.

A US default is highly unlikely but political negotiations could create volatility in stock markets.

This doesn’t look like a selling trigger. Investors should focus on their long term goals and use any short term weakness as opportunities to invest.”

The 2011 Debt ceiling

In August 2011 a similar scenario played out.  The S&P 500 fell 19.74% from its peak in July 2011 as the S&P credit rating agency cut their top notch rating for the US and investors sold out. However by the end of the year the S&P had recovered and ended the year up 1.46%.

Chris Saint, Head of Currency Dealing, Hargreaves Lansdown “The US dollar extended its recent decline against the pound (lows of US$1.6261) after the deadline was missed. The fallout appears to have been limited by hopes that significant damage to the US economic recovery will be avoided, assuming a resolution can be agreed upon very soon.  In September we saw demand for US dollars rise 29% on the previous month.”

 

At the time of writing, the exchange rate stands at:

 

         Interbank rate                   % daily change

Sterling / US dollar                          1.6242                                           +0.37%


US Independence Day – Should investors buy into the American Dream?

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·         US valuations are at their long term average

·         US economy accounts for 19% of World GDP

·         HL analysis shows only 3 out of 77 large cap US funds beat their benchmark

Adrian Lowcock, Senior Investment Manager of Hargreaves Lansdown, looks at the prospects for the US economy on the eve of Independence Day;

“The US economy is much further down the road to recovery than the UK and Europe.  The banking system has been fixed and the country does not have the problems that still exist in Europe. We can see the light at the end of the tunnel in the US and sustainable growth may be achievable.

“Many US companies benefit from strong management teams, are profitable businesses and operate in an environment of improving growth.  Many American companies have a consistent and long term track record of being able to grow profits. In the world of uncertainty a premium is being attached to those businesses that can continue to grow.

“Whilst overall the US stockmarket is not cheap, there are still areas which offer value and investors get access to companies with huge growth potential.  The US has a long history of encouraging entrepreneurs to develop and grow business.  The US has a large smaller companies sector which is full of businesses looking to grow into global leaders. Investors should make sure they have some investment in the US Market within their portfolio.”

US Economy

The US Economy accounts for 19% or nearly 1/5th of the world’s gross domestic product.  Economic outlook in the US is improving with GDP growth forecast by the IMF at 1.9% for 2013 and 3% in 2014.  The threat of a “fiscal cliff” was largely delayed; bank lending conditions have improved from low levels.

 

Household debt as proportion of disposable income has fallen back to 2004 levels. House prices started to rise in 2012 and investment in residential property has followed.

 

Unemployment is falling with major banks* predicting the unemployment rate will be around 7% by the end of 2013.

 

Rising house prices should help rebuild household finances, as will improving employment, providing support to personal consumption.  Low borrowing rates should be supportive of increased spending, while businesses encouraged by the improving financial conditions and healthy profits may well increase investment.

 

Shale gas could be transformative for the US economy.  According to the U.S. Energy Information Administration it will keep market gas prices low at around $4 per million Btu until 2019 with prices rising slowly thereafter. This could rejuvenate the industrial sector.

 

Risks to US Recovery

 

The biggest risk is the early withdrawal of the Quantitative Easing programme.  As the economic data, such as unemployment falling below 7%, improves it puts pressure for the Federal Reserve to roll back on further QE. The US has not addressed its budget deficit and the US lacks a plan to reduce the debt. As such there are risks of further political entanglements over raising the debt ceiling, both of which result in a higher sovereign risk premium.

 

Investing in the US

 

The US stock market has performed well in recent years recovering from the financial crisis having returned 103% since March 2009 compared to the FTSE 100 and the FTSE Europe Ex UK returning 80% and 62% respectively. The US stock market is around its long term average valuation with a P/E at 21.98 compared to its long term average of 23.8 times earnings. Even so there are areas of the US Market that remain attractive.

 

The challenge for investors is how to access the US market. Analysis by Hargreaves Lansdown shows that large cap active managers continue to struggle in the region with only 3 out of 77 funds in the IMA North American sector out-performing the S&P 500 over 3 years and 6 out 68 able to do so over a 5 five year period.

 

Investors looking for large cap exposure should consider US tracker funds, , such as HBSC American Index or I-Shares S&P 500, to give access to the world’s largest stock market whilst keeping fees low. For those wishing to access US smaller companies our preferred fund is Legg Mason US Smaller Companies.

 

* Bank of Tokyo-Mitsubishi, Barclays, Citigroup, Deutsche Bank and UBS


Escape the ‘Blue Monday’ Blues and Head to the Sunshine State

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After the festive holiday celebrations end, looking forward to starting a New Year in January can seem a dim prospect. In fact, Monday, 21 January is scientifically proven to be the unhappiest day of the year for the majority of Brits and has been aptly dubbed ‘Blue Monday’.

But as the festive cheer wanes, sunny prospects await. With year-round sunshine, all new attractions and abundant deals throughout the destination, there’s no better time to plan a holiday to Orlando, the World Capital of Smiles. In addition, Visit Orlando has launched a brand new Orlando Holiday Planning Tool, helping Blue Monday daydreams turn from a fantasy to reality.

The website, orlandoholidayplanning.com, offers a wealth of ‘need to know before you go’ planning tips for visitors.

We Need To Talk About Gun Control

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The news of mass shootings in America has become a depressingly common occurrence. Each time the same thing happens: the debate on gun control.

This year two of the worst shootings happened in America, in a Colorado theatre and a Connecticut elementary school. This excellent Washington Post article has a run down of shootings in America for 2012. What is really interesting about the article is that it tells you what type of gun was used in each shooting. Some of these shootings were done with military assault rifles or automatic weapons. To have a gun is one thing, but for a civilian to buy this type of weapon, which only purpose is to kill people, is something that should be re-examined. In fact it was former President George W Bush that allowed a federal ban on assault weapons to expire in 2004 when he was president. President Obama has previously mentioned his support for a ban on assault weapons.

Yes, I did say those guns are used to only kill people. Aren’t all guns for that? Well, no. Farmers need guns, guns can be used for shooting clays, or animals. For hunting and even for protection. I am not pro-gun, but I do not think the issue is as clear as the hordes on Twitter and Facebook think it is. If you make guns illegal in America then there is an obvious problem: you drive the gun trade underground and people who want to protect themselves would not be able to legally own a gun. I don’t want to live in a world where only the bad people have guns.

On the same day of the mass shooting in Newton there was a similar attack on children in China, but with a knife as a weapon instead. No children actually died in the China attack, but there have been fatalities in similar attacks. it does raise a point: a gun is only a weapon when a human being is holding it. But so is anything else when there is an intention to kill.

President Barack Obama promised “meaningful action”, after the Connecticut shooting. Also saying, “As a country, we have been through this too many times.”

The fact is that most gun legislation is set by states rather than federal government, and Connecticut has relatively tight firearms restrictions by US standards. Some people are saying that the shootings are a mental health problem rather than a gun problem, but what is abundantly clear is that tighter regulation is needed.

According to a 2012 report by the United Nations Office on Drugs and Crime, the US has 3.2 firearms homicides per 100,000 population compared with 1.6 for Canada, 1.0 for Australia and 0.1 for England and Wales,

There are an estimated 300m guns in America, nearly one for every one of the 315m Americans in America, and the National Rifle Association (NRA) has more than 4m members. America is a nation where guns are embedded into it’s very foundation, there constitution even declares the ‘right to bear arms’, even if guns were banned where would all these guns go? What is clear is that we have to talk about gun control, but solving the problem will not be easy.

Reasons Why You Should Plan a European Cruise

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Vacations are a rare commodity in this economy. In many cases, people have become so strained for money that they have had to give up simple things like hobbies just to make ends meet. However, what if someone told you that it was possible to experience exotic European locales while avoiding the cost of a typical European vacation? Such a prospect is possible aboard a European cruise.

 

As someone who is ready to plan their well-deserved vacation, it might be time to consider a cruise through Europe as a viable option. From luxurious on board environments to breathtaking destinations, booking a European cruise has many obvious advantages. Below are a few of the most notable benefits covered in more detail.

Luxurious Comfort

In general, European cruises are the epitome of luxury. Whether you want to lie out on the deck or enjoy a drink at the bar, there are many compartments on cruise ships that provide that sense of relaxation and comfort. Simply put, you tour your favorite sites around Europe in style; not from the confined seats of a crowded bus.

Additionally, you generally travel with people who are in the same kind of situation as you – in that they all speak English and are out to enjoy a European vacation for the first time. This helps you become acquainted with local culture and hotspots without having to worry about a language barrier or getting lost in translation.

Exotic Locations

Europe is notoriously full of exotic locations. Whether you want to experience the breathtaking natural beauty of the continent or see some of the most historically significant sites in existence, there are plenty of desirable locales to keep you on your toes.

There is a wide array of cruises available that tour all the most popular destinations throughout Europe. As such, it is typically a simple process to find a particular cruise route that travels to one or more of your favorite places.

Affordable

Unfortunately, European hotels, restaurants and other amenities are more costly than in the U.S. due to the poor exchange rate. As an American leaving American soil aboard a cruise ship, you do not have to worry about the exchange rates between U.S. currency and the Euro.  Thus, taking your tour of Europe aboard a ship that deals with U.S. currency, will save you more money than if you were to travel by plane or tour by bus.

European cruises are a unique way to get that exotic vacation to Europe without the hassle of flying or putting up with stagnant bus rides. As you plan for your next vacation, consider the above benefits to decide if this is the year you finally get to take that trip to Europe as part of a European cruise.

King of Cats – America | Music Review

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King of Cats is a boy called Max from Oxford but I’m afraid I don’t know about the name. I don’t like to ask. He sends me nice emails and is very polite but I do need to get one thing off my chest: I don’t much like cats. My sister has one that looks like it is going to defecate when you look at it. My parents have one called Pumpkin who drew blood from me the first day we met, and 19 years later she’s nothing if not Machiavellian. What I do like, though, is the King of Cats.

This album is what happens when a singer-songwriter from Oxford takes himself off to America to travel around on greyhound buses armed with only an acoustic guitar and a four track. I say only but I hoped he’d taken some clean pants and a toothbrush but Max hasn’t let on to me about that so we’ll have to assume.

America, the debut record by KoC, was committed to tape in some odd places whilst on his travels in the USA. Max recorded on a cherry picker in Seattle, in the mountains of Oregon and at a hardcore show in San Fransisco. Having sat in on more recording sessions than is enjoyable I wish more were conducted in such delightful surroundings. The results are really rather good.

Each song on the album is named after where it was recorded. My personal favourite is “Hooters Casino, Las Vegas, whilst Mike was showering” but other stand out titles include “Next to the train-tracks in Flagstaff, Arizona” and “on a plane, in the high desert and Seattle”. It’s a nice record.

The album begins with the aforementioned “One a plane . . . “which builds with each of the many plucking of guitar strings. It sounds like Super XX Man were they to have been from Middle England.

Each song captures not only the sound of Max’s guitars and vocals but also incidental sounds such as dogs barking and the sounds of people clapping and talking. At the end of “Golden Gate Park . . .” a couple can be heard arguing between themselves including the female, Suzie, uttering the cutting line of “I’m not trying to be mean but I just don’t give a shit.” She’s set her stall out clearly there and so I will do the same for you: this is a good record. If you like the idea of the folky acoustic sound of the Mouldy Peaches with the vocals of Jeff Mangum of Neutral Milk Hotel then this is a record for you. Otherwise move along, because, like Suzie, you just won’t give a shit.

America is released on 19th May 2012 via http://kingofcats.bandcamp.com/album/america

 

Have Fun On The Cheap

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In this economical climate you would be foolish to pay full price for anything. However, it can be hard to find inexpensive stuff to do now that the recession has kicked in. The answer is to have fun on the cheap. There is still fun to be had, and relatively cheaply if you look around. Frost has done the searching for you and has come up with a number of things to do without breaking your budget.

You can buy Peter Pan Tickets. I have seen it and it is an amazing experience. If you are a sports fan you can get San Diego Chargers Tickets at a reasonable price. There are few things more fun than a night of American football.

If sport is not your thing, music fans can get Celine Dion Tickets
Celine is quite the performer and that will be an experience you will never forget. If Celine is not your cup of tea you can get Rascal Flatts Tickets

If you are feeling more cultured then you can get Trans-Siberian Orchestra Tickets cheaply.

Everyone deserves to have experiences they will never forget, so just buy them at a price you can afford. Have fun!