Wednesday 27th July 2016
NEWS TICKER: JULY 27TH 2016: The ESMA registers portal will undergo a technical update tomorrow. The machine-to-machine service will no longer support connections via SSL v1, SSL v2, SSL v3 and RC4 - All machine-to-machine services will be available via HTTPS only while HTTP connectivity will no longer be available. Full details are available on the portal itself – Twitter looked to have missed second-quarter revenue numbers and gave a gloomy outlook for growth in Q3. Q2 revenues of $602m and earnings per share of 13 cents disappointed analyst, who expected revenues of c.$607m, while EPS beat estimates of $0.10. Twitter says Q3 revenue will be somewhere between $590m and $610m. Twitter’s shares have dropped 20% year-to-date, and fell by more than 11% in after-hours trading after its results were announced. The firm says it believes advertising will migrate to video and explained that is why it secured streaming rights to NFL and NBA games in the US. Chief operating officer Adam Bain says, “There is a whole new set of video budgets out there today. These are these online video budgets. It’s about a $10bn marketplace in the US. These are video budgets that today we basically don’t qualify for, since the spend is going in other areas.” However, investors look to be wary of whether user growth (up only 1%) will meet expectations. The next benchmark report will be from Facebook (expected today), which analysts think will be strong. - Deutsche Bank AG reports that its second-quarter net income fell 98% from a year earlier, hurt by weaker performances in trading and investment banking, as well as restructuring costs. John Cryan, chief executive officer of the German bank, said that more needs to be done to control costs and that low interest rates will increasingly affect customers -- Verizon Communications has agreed to a $4.83bn cash deal for Yahoo's web assets as it looks to grow its digital media and advertising business - Apple reports a 15% drop in Q3 revenues because of falling iPhone sales, revenue and average selling price. Moreover, the firm’s market share of global smartphone shipments also fell off in Q1 by as much as 3 percentage points to 14.8% following a couple of years’ worth of impressive growth, particularly in China. Apple is meeting growing competition from Chinese smartphone vendors such as Huawei, Oppo and Xiaomi. Apple reported an overall decline in revenues of $7bn to $42.4bn in Q3, down 15% year on year, mostly due to a drop in iPhone shipments - The Catalan Parliament has voted 72-10 in favour of the conclusions of a pro-independence "constituent process" report today, a move that opposition parties, two of which abandoned the chamber in protest, described as "wholly illegal". MPs from the Popular Party in Catalonia (PPC) and Ciudadanos left the chamber in protest before the vote took place. Catalan Socialist Party (PSC) MPs remained seated but did not vote. The report, commissioned by separatist parties in the parliament, recommend measures that could lead to a unilateral declaration of independence. Earlier this month, the Spanish Constitutional Court warned the Catalan Parliament that its commission could not study "the opening of a constituent process in Catalonia that leads to the creation of a future Catalan constitution and an independent Catalan state". Esquerrra (ERC) leader Oriol Junqueras tweeted that "we have the democratic mandate to build a new country, clean and fair, and a mandate, for us, is a duty!" -- Jan Dehn, head of research at Ashmore, in a client note today made the case for allocating to emerging markets, even if uncertainties linger in developed markets. He suggests that whilet there are some risks involved, they are fairly priced, and insists that the fears pertaining to EM are misplaced. “Emerging Markets (EM) have performed a lot better this year than for some time. EM currencies are outperforming the Dollar and EM local bonds are up strongly year to date in Dollar terms. Despite the rally EM bonds still pay about 5-6 times higher yield than similar duration bonds in the US, while many other developed market bonds pay negative yields. The reasons for EM’s better performance are many, including better valuations, stronger technicals and improving relative and absolute fundamentals. As recently as last week, the IMF revised down developed market growth again, including -0.2% revisions of US and UK growth. China’s growth forecast was revised up.” -- The EBRD is considering extending a loan of up to $180m to RGP Kazvodkhoz (the "Company"), wholly owned by the Government of Kazakhstan, for rehabilitation of the water supply and irrigation infrastructure in South Kazakhstan, Zhambyl and Aktobe regions of Kazakhstan. The loan will be backed by a sovereign guarantee -- The unit of Royal Dutch Shell Plc plans to launch an IPO in October involving up to 330m primary and secondary shares (some 18.6% of the company’s shares) at up to P90 per share, with a listing on the Philippine Stock Exchange tentatively set for November 10th. The IPO is now awaiting regulatory approval and follows on from the recent$532m maiden issue by cement maker Cemex Holdings Philippines. Manila’s benchmark stock index touched a 15-month high last week, with investor confidence boosted by the country’s economic performance --

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RBC Dexia/Accenture report says change is due in Spanish investment industry

Friday, 15 June 2012
RBC Dexia/Accenture report says change is due in Spanish investment industry The shape of Spain’s asset management industry is set to change dramatically according to a report by RBC Dexia and Accenture. http://www.ftseglobalmarkets.com/

The shape of Spain’s asset management industry is set to change dramatically according to a report by RBC Dexia and Accenture.

The RBC Dexia/Accenture report predicts further concentration of Spain’s asset management industry into fewer, more specialised managers and a stronger focus on improving efficiency and performance. Improvements in technology will also be vital to success, with outsourcing high on the agenda. José Maria Alonso-Gama, managing director of RBC Dexia in Spain, sets the scene, explaining that: “Spanish fund firms are concentrating on bottom-line indicators such as fund performance and increased assets under management. They recognise the need to restore credibility and investor confidence by showing they are delivering on their performance promises.”

The report is based on a survey of 33 asset management firms in Spain in the first quarter of 2012 by RBC Dexia Investor Services and Accenture. Some 33% of respondents have more than €1bn in assets under management (AUM), 46% have between €200m and €1bn in AUM and 21% have less than €200m in AUM.



Although the industry is dominated by a small number of firms, with the top three managers accounting for 45 percent of assets under management, the average size of funds in Spain is only €57m. This compares with an average of €300m in Switzerland and €262m in the UK. The total number of funds in Spain has been contracting (down by about 20% to 2,500 in the past three years due to industry consolidation) and the report expects this trend to continue with, “The evolution of larger and more specialised companies with rationalised fund ranges”.

Also according to the report, of the 33 investment companies surveyed, 95% of local managers and 91% of foreign managers cited increased assets under management as a key indicator of success over the next two years. Fund performance was cited by 91% and 73% respectively and increased service quality by 86% and 45%. When it came to development of new products, 36% of foreign managers cited this as important but only 9% of local managers.

Over 80% of independent managers in Spain believe that the Undertakings for Collective Investment in Transferable Securities IV (UCITS IV) directive will make it easier to distribute investment funds abroad by creating a common regulatory environment. However, 70% of local managers were also concerned that it would lead to increased competition from overseas funds while independent managers were worried it would result in increased reporting obligations.

More than two-thirds of respondents cited improving technology as the most important factor in increasing efficiency. Most managers (90% of foreign managers and all local Spanish managers) expected an increase in the number of fund managers outsourcing certain functions in coming years. And 90% of those surveyed said there would be an increase in the diversity of functions outsourced in coming years. “The increased risks control imposed by new regulations and cross-border distribution opportunities that they also create, require increasingly sophisticated technology,” says Diego López Abellán, of Accenture’s Capital Markets practice for Spain. “Outsourcing can play a pivotal role in enabling continuous technology upgrades while avoiding costly investment.

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