Sunday 29th May 2016
NEWS TICKER, FRIDAY MAY 27TH: BGEO Group plc, the London listed holding company of JSC Bank of Georgia, has this morning announced that Bank of Georgia, Georgia’s leading bank, and the European Bank for Reconstruction and Development (EBRD) have signed a GEL220m (approximately £70m) loan agreement with a maturity of five years. EBRD obtained the local currency funds through a private placement of GEL-dominated bonds arranged by Galt &Taggart, a wholly owned subsidiary of BGEO. This is the largest and the longest maturity local currency loan granted to a Georgian bank, which will allow Bank of Georgia to issue longer-term local currency loans, providing essential support for micro, small and medium sized enterprises to converge to DCFTA requirements, as well as underserved women entrepreneurs. “We are keen to develop financial products and lending practices, to service specifically women-led SMEs, which will ultimately increase their involvement in developing Georgia’s private sector”, says Irakli Gilauri, CEO of BGEO Group - The UK’s CBI has responded to analysis from the Treasury showing that a vote to leave the European Union could negatively impact UK pensions. Rain Newton-Smith, CBI Economics Director, says that: “All pension schemes benefit when funds can be invested across a stable, growing economy, to best support people in their retirement years. Any financial market turmoil caused by a Brexit is likely to have a negative effect on household wealth, the value of funds and damage pensions here at home, especially for those looking to retire within the next few years. The sheer weight of credible evidence points towards a serious economic shock if the UK were to leave the EU, meaning a hit to the value of our private pensions, jobs and prosperity.” - EPFR Global reports that Nine weeks into the second quarter mutual fund investors remain underwhelmed by their choices as they seek to navigate a global economy characterized by political uncertainty in Europe, lacklustre corporate profits and the prospect of another interest rate hike in the US, economic stress in major emerging markets and Japan's experiment with negative interest rates. During the week ending May 25 all nine of the major EPFR Global-tracked Emerging and Developed Markets Equity Fund groups posted outflows, as did Global, High Yield, Asia-Pacific and Emerging Markets Bond Funds, seven of the 11 major Sector Fund groups and three out of every five Country Equity Fund groups. Alternative Funds look to have taken in over $1bn for the fifth time in the past 14 weeks. Overall, EPFR Global-tracked Bond Funds added $2.6 billion to their year-to-date tally while another $9.1bn flowed out of Equity Funds. Some $12bn was absorbed by Money Market Funds with US funds attracting the bulk of the fresh money. EPFR Global-tracked Emerging Markets Equity Funds remained under pressure from many directions. China's economic data and policy shifts continue to paint a mixed picture for growth in the world's second largest economy, the US Federal Reserve is talking up the prospects of a second rate hike this summer, Europe's recovery appears to be running out of stream and the recent recovery in commodities prices is being viewed with scepticism in many quarters. All four of the major groups recorded outflows during the week ending May 25, with the diversified Global Emerging Markets (GEM) Equity Funds seeing the biggest outflows in cash terms and EMEA Equity Funds in flows as a percentage of AUM terms. Latin America Equity Funds extended their longest outflow streak since late 3Q15 as investors who bought into the prospect of political and economic change in Brazil confront the messy reality. However, year to date Brazil has been the top emerging market for all EPFR Global-tracked Equity Funds as managers bet that the impeachment proceedings against President Dilma Rousseff will open the door to more centrist economic policymaking says the funds data maven. Among the EMEA markets, the firm reports that GEM managers are showing more optimism than investors. EMEA Equity Funds have now posted outflows for five straight weeks and investors have pulled over $300m out of Russia and South Africa Equity Funds so far this month, though GEM allocations for both South Africa and Russia climbed coming into this month. The latest allocations data indicates less optimism about China despite is still impressive official numbers - annual GDP was running at 6.7% in 1Q16 - and the edge the recent slide in the renminbi should give Chinese exporters. GDP growth in Emerging Asia's second largest market, India, is even higher. Elsewhere, India Equity Funds have struggled to attract fresh money as investors wait to for domestic business investment and the government's reform agenda to kick into higher gears says EPFR Global – According to New Zealand press reports, stock exchange operator, NZX, will initiate confidential enquiries into listed companies that experience large, unexplained share price movements, to determine whether they may be holding undisclosed "material" information even while remaining in compliance with the market's Listing Rules that require disclosure of material information at certain trigger points. In an announcement this morning, NZX also warned investors not to assume that a listed entity's Listing Rules compliance statements meant they did not have material information in their possession which would potentially require eventual disclosure - Asian stocks were modestly higher today, largely on the back of increasingly softening sentiment from the US Federal Reserve. Most people think there will be one rate hike this year, but likely it will be in July rather than June. Either way, it will be one and not two or three. Fed chair Janet Yellen is scheduled to talk about interest rates at an event at Harvard University today and the expectation is that a softer approach for the rest of this year will be writ large; a good signal of intent will follow today’s quarterly growth stats. The presidential election will encourage caution; continued market volatility will encourage caution and mixed manufacturing data will encourage caution. Japan’s benchmark Nikkei 225 index added 0.4% to touch 16,834.84 and Hong Kong’s Hang Seng rose 0.9% to 20,576.52. The Shanghai Composite Index gained 0.3% to 2,829.67. The Straits Times Index (STI) ended 6.65 points or 0.24% higher to 2773.31, taking the year-to-date performance to -3.80%. The top active stocks today were SingTel, which gained 1.05%, DBS, which gained 0.07%, UOB, which gained0.11%, Keppel Corp, which gained2.47% and Ascendas REIT, which closed unchanged. The FTSE ST Mid Cap Index gained 0.27%, while the FTSE ST Small Cap Index rose 0.30% - The European Bank for Reconstruction and Development (EBRD) says it is taking the first step towards developing a green financial system in Kazakhstan in partnership with the Astana International Financial Centre (AIFC) Authority. EBRD President Sir Suma Chakrabarti and AIFC Governor Kairat Kelimbetov signed an agreement today on the sidelines of the Foreign Investors Council’s plenary session to commission a scoping study for the development of a green financing system in Kazakhstan. The study, scheduled to be completed in 2017, will assess the demand for green investments, identify gaps in current regulations, and make recommendations for the introduction of green financing standards and for the development of the green bonds market and carbon market services. The development of a green financing system would be consistent with the COP21 Paris Agreement, aligning financing flows with a pathway towards low greenhouse gas emissions and climate resilient development. The AIFC Authority was put in place earlier this year and is tasked with developing an international financial centre in Astana. In March, the AIFC Authority, TheCityUK and the EBRD signed a Memorandum of Understanding to support the establishment of the financial centre and to encourage and improve opportunities for the financial and related professional services industries – Turkey’s Yuksel has issued notice to holders of $200m senior notes due 2015 (ISIN XS0558618384), and filed with the Luxembourg Stock Exchange, that the company has agreed a term sheet with the ad-hoc committee of noteholders and its advisors to implement a restructuring of the notes and is currently finalising the required scheme documentation with the Committee. Once agreed, the Company will apply to the English High Court for leave to convene a meeting of note creditors to vote on the scheme proposals as soon as reasonably practicable when the High Court reconvenes after vacation in June 2016 - Following the agreement in principle of the May 24th Eurogroup for the release of the next loan tranche to Greece, domestic authorities have intensified their efforts for the completion of all pending issues reports EFG Eurobank in Athens. According to Greece’s Minister of Finance Euclid Tsakalotos, on the fulfilment of all pending issues, €7.5bn will be disbursed in mid-June, of which €1.8bn will be channeled to clear state arrears – This weekend is the second UK May Bank Holiday. FTSE Global Markets will reopen on Tuesday, May 31st at 9.00 am. We wish our readers and clients a sunny, restful, safe and exceedingly happy holiday.

Latest Video

Latest News

  • Friday, 27 May 2016 Latam corporate defaults pushes global tally to 74 this year says S&P
    The global corporate default tally rose to 74 issuers so far in 2016 after two issuers, both from Latin America, defaulted this week. The last time the global tally was higher by this point in the year was in 2009, when it was reached 135 during the financial crisis, according to S&P Global Fixed Income Research issued today. Read more...
  • Friday, 27 May 2016 ESMA issues consultation on technical advice given on Benchmarks Regulation
    European markets regulator ESMA has issued a consultation paper (CP) following ESMA’s technical advice to the European Commission, based on the Benchmarks Regulation text published by the European Parliament. A separate CP on the draft technical standards only will be published by ESMA in due course, it adds. Read more...
  • Friday, 27 May 2016 SSgA issues SPDR ETFs on multiple Euroclear bank platforms
    State Street Global Advisors (“SSGA”) the asset manager of State Street Corporation says it has made available 40 SPDR ETFs on Euroclear’s FundSettle fund processing platform, powered by FundsPlace, including its full range of 29 Sector ETFs. SSGA says it believes the admission to FundSettle enables end investors to buy and sell shares in ETFs like mutual funds, at the end-of-day “net asset value”, offering an additional means of accessing the products and benefiting from Euroclear's safe, reliable and scalable service offering. European investors who exclusively invest in mutual funds now also have access to a total of 40 SPDR ETFs. The SPDR ETFs will still be available on the exchanges where they are listed. Read more...
  • Thursday, 26 May 2016 CalPERS asks Old Republic investors to vote for proxy access at annual meeting
    The California Public Employees' Retirement System (CalPERS) is urging fellow shareowners of the insurance underwriting company Old Republic International Corporation (Old Republic) to vote in favor of a proxy ballot proposal requiring the company to allow shareowners proxy access. Formally titled proposal #4, it will provide shareowners the right to nominate directors to the company's board. Without effective proxy access, the director election process simply offers a ratification of management's slate of nominees. Read more...
  • Thursday, 26 May 2016 ESMA issues draft RTS on indirect clearing under MiFIR and EMIR
    The European Securities and Markets Authority (ESMA) has today issued two final draft regulatory technical standards (RTS) on indirect clearing under the Markets in Financial Instruments Regulation (MiFIR) and the European Market Infrastructure Regulation (EMIR) respectively. The draft RTS clarify provisions of indirect clearing arrangements for OTC and exchange-traded derivatives and help to ensure consistency and that an appropriate level of protection for indirect clients exists. Read more...
  • Thursday, 26 May 2016 BIS issues first phase of FX market code of conduct
    The first phase of a global code of conduct for FX markets the Global Code of Conduct for the Foreign Exchange Market and principles for adherence to the new standards were released today in New York by the Bank for International Settlements’ (BIS’) Foreign Exchange Working Group (FXWG). The Global Code is being developed by a partnership between central banks and market participants from 16 jurisdictions around the globe. This initial release includes comprehensive guidance on market ethics, information sharing, execution costs, trade confirmation and settlement ahead of the implementation of the final code next year. Read more...
  • Thursday, 26 May 2016 EEX: German emissions auction contract extended to 2018
    The contract for the European Energy Exchange (EEX) as the auction platform for CO2 emission allowances of the Federal Republic of Germany has been extended by the German Federal Environment Agency for another two years. In 2013, EEX was awarded the contract for the execution of the German CO2 auctions as definitive auction platform. In this capacity, EEX conducts auctions of emission allowances for the third EU-ETS trading period on behalf of the Federal Republic of Germany for a period of three years. The Federal Environment Agency has now exercised the option to extend the contract for another two years. As a result, German auctions will be conducted at EEX until mid-November 2018. Read more...
  • Thursday, 26 May 2016 Leasing in Central London banking sector 4.9% above ten-year average says CBRE
    The drive to cut costs has encouraged financial services occupiers to focus on reducing real estate costs and adopting strategies to occupy their space more efficiently. Last year, says real estate advisor CBRE, saw a marked increase in banking and finance leasing activity in Central London. “Using a combination of offshoring and nearshoring, there has been an ongoing move by big banks to relocate non-core functions outside of Central London, as seen in HSBC’s decision to move 1,000 head office staff from London to Birmingham”. Read more...
  • Thursday, 26 May 2016 OECD tracks long term drop in productivity across the globe
    Productivity growth – the central driver of rising economic output and material living standards – has been slowing in many advanced and emerging economies in the wake of the crisis, according to new data released today in the OECD’s Compendium of Productivity Indicators. In most OECD countries the slowdown has cut across nearly all sectors, affecting both large and small firms, but has been particularly marked in those industries where new digital and technological innovations were expected to generate productivity dividends such as in the information, communication, finance and insurance sectors. Slowing productivity growth has also restricted wages as countries have sought to maintain competitiveness – particularly in economies struck hard by the crisis such as Greece, Spain and Ireland. Read more...
  • Thursday, 26 May 2016 Migrants boost private consumption in Turkey says S&P
    Private consumption has once again taken over as the main influence on Turkey's economic growth, supported by low oil prices and spending by the large migrant population, says Standard & Poor’s in a new report issued today. Household spending reportedly rose by 4.5% last year, despite uncertainties around parliamentary elections, currency depreciation, and geopolitical and security concerns. A 30% rise in minimum wages, additional spending by refugees arriving in Turkey, and still comparatively low oil prices will continue to support consumer demand this year. Capital spending and exports remain subdued, however, and high external financing needs are still the key vulnerability for the Turkish economy. Read more...
  • Wednesday, 25 May 2016 BlackRock launches first MBS bond ETF in Europe
    BlackRock is launching Europe’s first exchange traded fund (ETF) investing in high quality US mortgage-backed securities. The iShares US Mortgage Backed Securities UCITS ETF (IMBS) provides access to AAA-rated mortgage-backed securities issued by three agencies backed by the US government says the asset manager. The underlying index, the Barclays US MBS Index, is based on a universe of individual fixed rate pools, ensuring diversification across factors such as sensitivity to interest rates and prepayment risk. The fund is physically replicating, meaning it buys the securities of the index, and has a total expense ratio of 0.28%. Read more...
  • Wednesday, 25 May 2016 EU energy union study calls for more centralised governance and drive
    In a new independent study commissioned by the European parliament, authors Koen Rademaekers and Luc Van Nuffel, look at the requirements for the establishment of a fully integrated European energy market. The study, Energy Union: Key Decisions for the Realisation of a Fully Integrated Energy Market is designed to assess whether, and to what extent, the EU’s internal energy market objectives can effectively and efficiently be reached with the current policies and instruments, describe instruments in place, both at EU and national level, that support an integrated European energy market; identify potential bottlenecks and propose policy improvement Read more...
  • Wednesday, 25 May 2016 Moody's downgrades Macao's government issuer rating to Aa3 with negative outlook
    Moody's has downgraded Macao's government issuer rating to Aa3 from Aa2 and assigned a negative outlook. Today's rating action concludes the review for downgrade that Moody's initiated on March 11th. Moody's says the sharp weakening in the economy, with growth remaining highly volatile, coupled with the limited policy response to the fall in gaming revenues, leave Macao's credit profile weaker than those of Aa2 peers. Consequently, the negative outlook reflects uncertainties surrounding the trajectory for growth, the policy response, and the consequences for Macao's fiscal and external buffers. Read more...
  • Wednesday, 25 May 2016 BGC Partners announces pricing of $300m of 5.125% senior notes due 2021
    BGC Partners, Inc. (NASDAQ: BGCP) has announced the pricing of its offering of $300m aggregate principal amount of 5.125% senior notes. The notes will pay interest semi-annually at a rate of 5.125% per annum, on every May 27th and November 27th, beginning in November this year and will mature on May 27, 2021. The closing, subject to customary conditions, is expected on Friday this week. BGC says it will use the proceeds for general corporate purposes, which may include the repayment in full of the company's 4.50% convertible notes scheduled to mature on July 15th and to fund future potential acquisitions. Read more...
  • Wednesday, 25 May 2016 Brexit could risk sterling’s status as a reserve currency says S&P
    Among the latest doom laden predictions for the UK should its voting population decide to leave the European Union, is a new report from Standard & Poor’s. “A decision by the United Kingdom to leave the EU in the June 23rd referendum could jeopardize the British pound sterling's position as a reserve currency and the associated benefits to the 'AAA' credit rating, says S&P Global Ratings in a report published today” says the credit maven. Read more...

MORE NEWS...
Key Stories from FTSE Global Markets

Set against a dynamic business backdrop in its own backyard, the European Energy Exchange (EEX) has adopted a confident and bold strategy to establish its global footprint within the exchange industry. Last year’s move into new commodity focused asset classes marks a new dimension in EEX’s growth and its continued transition from Europe’s leading energy exchange towards a global, multi-commodity exchange group. It has provided EEX and its parent company, Deutsche Börse Group, a growing competitive edge, given that it can also provide the vertical post trade support infrastructure required to back its expansion plans. Why has EEX been so successful in Europe, and how does that translate into its plans for global growth?

Read more...
Wednesday, 21 October 2015

Egypt opts for development funds

For the third time this year, the Central Bank of Egypt (CBE) has depreciated the Egyptian pound against the dollar in a foreign exchange auction in mid-October, taking the currency's decline for the year to 9.8%. The pound fell 1.3%(10 piasters) to 7.93 per dollar sell side and 7.88 buy side according to a report by the state-owned Middle East News Agency, which announced that the CBE offered $40m at a regular dollar sale to local lenders. Can the country pick its way out of the blues?

Read more...

The make-up of shareholders in Turkey’s banking segment has always been a touchstone of wider market change. The country has always been a swing market and the banking system has remained vulnerable, even with an improved capital base, as it has an ultra-high dependency on foreign funding of lending. That vulnerability has resulted in some significant changes in the investment in the country’s banking segment by foreign financial firms who have shown little stickiness in the country when the going gets tougher.

Read more...
Wednesday, 21 October 2015

Political uncertainty weighs on Turkey

A survey of 947 respondents in Turkey by Washington think tank PewCentre Research suggests Turks are dissatisfied with the direction of their country. Rising prices, crime and inequality are concerns. Moreover after years of quasi-Islamic rule that has been antipathetic to the military; survey respondents say the military is the only group with a “good influence on the country”. Opinions of the police, national government, religious leaders and the courts are mixed, while views of the media tilt to the negative. More pertinently perhaps, 52% of Turks think their children will be worse off financially in the future. The findings come as voters are scheduled to revisit national government elections on November 1st after the AKP party failed to form a coalition government in June. The upcoming elections will be closely watched, both as a bellwether of wider change in the eastern Mediterranean and as an indicator of the near term prospects for a lynchpin emerging market.

Read more...

In September, FTSE Group announced that Qatar will be upgraded from frontier to secondary emerging markets within the FTSE Global Equity Index Series in two equal tranches in September 2016 and March 2017, after the index provider confirmed that the country had now passed its key liquidity criteria for Secondary Emerging Market inclusion. Despite the plunge in oil prices, Qatar has held up relatively well in the current rout in emerging market stocks. Although with the exception of the FTSE upgrade, there remains a lack of immediate catalysts for Qatari stocks, even so Qatar maintains its edge as the government continues to spend freely, even as energy prices remain depressed. Does positive thinking about the kingdom’s prospects have legs?

Read more...
Page 1 of 621

Current Issue

TWITTER FEED

Blog