Saturday 18th April 2015
NEWS TICKER FRIDAY APRIL 17TH 2015: -On June 9, 2015, the Federal Trade Commission will host a workshop to examine competition, consumer protection, and economic issues raised by the proliferation of online and mobile peer-to peer business platforms in certain sectors of the economy, often referred to as the “sharing economy.” The workshop will take place in Washington, D.C., at the FTC’s Constitution Center conference space. Peer-to-peer platforms, which enable suppliers and consumers to connect and do business, have led to the emergence of new business models in industries that have been subject to regulation. The FTC’s sharing economy workshop will explore how regulatory frameworks can accommodate new sharing economy business models while maintaining appropriate consumer protections and a competitive marketplace. “We are seeing a dramatic growth in products and services that are built on peer-to-peer platforms, such as ride-sharing and property rentals, as more entrepreneurs harness the power of technology to reach more consumers,” says FTC Chairwoman Edith Ramirez. “The resulting business models have great potential to benefit our economy and consumers. Through our workshop, we want to better understand the competitive impact of these new business models, as well as their interactions with existing regulatory frameworks.” - he Straits Times Index (STI) ended 6.42 points or 0.18% lower to 3525.19, taking the year-to-date performance to +4.76%. The top active stocks today were Keppel Corp, which declined 2.01%, DBS, which gained 0.91%, SingTel, which gained 0.23%, UOB, which gained 0.38% and ComfortDelGro, with a 1.70% advance. The FTSE ST Mid Cap Index fell 0.30%, while the FTSE ST Small Cap Index rose 0.06%. The outperforming sectors today were represented by the FTSE ST Utilities Index, which rose 1.60%. The two biggest stocks of the Index - United Envirotech and Hyflux – ended 5.12% higher and 2.09% lower respectively. The underperforming sector was the FTSE ST Basic Materials Index, which slipped 1.82%. Midas Holdings shares declined 2.56% and Geo Energy Resources remained unchanged - It has been a testing day in the markets, with most stock markets reporting substantial losses. The spectre of another crisis in Greece as the IMF talked tough on the country adhering to its repayment schedule, a terminal outage at Bloomberg and a clampdown on OTC and short selling in China combined to test investor sentiment. The FTSE 100, fell briefly below 7000 to end up finding support at 7007; however Spain's Ibex and Italy's FTSE MIB were both 2% down while the German DAX 30 slid 1.8% and France's CAC 40 fell 1.2% - The outage impacted the UK DMO’s offer of £300m 1 month bill, due 18-May-2015(ISIN GB00BDNKWT09); the £1,000m 3-months bill due 20-Jul-2015 (ISIN GB00BDNLZ833), and the £1,500m 6-months bill due 19-Oct-2015 (ISIN GB00BDNNDG38) was conducted between midday and14.30 today. Any bids submitted in the aborted operation earlier this morning were deemed null and void - Catastrophe bond issuance is forecast to have risen almost 30% so far this year, though the size of the market remains modest. The increase in demand for cat bonds means that some bonds are now trading at a discount to their original issue price for the first time in years. Issuance for the year through to mid-April is predicted to be up 27% on 2014, at around $2.1bn, The full-year trend also looks positive, following on from a record cat bond issuance of $8.4bn in 2014 - Moody's Investors Service has described in detail the approach it takes to allocating expected credit losses across the various classes of debt issued by banks in the US, the EU and Switzerland. The liability hierarchy or "waterfall" that Moody's employs to allocate estimated losses to debt classes in these three jurisdictions incorporates the implications of key structural differences in their bank resolution and bail-in frameworks. In this way, the liability hierarchy aims to capture the prioritisation authorities will give different debt classes when apportioning losses to creditors in the event of a bank's failure. The construction of a given bank's liability structure at failure serves as the starting point of Moody's Loss Given Failure (LGF) analysis, instituted as part of its new bank rating methodology. The LGF framework is used to assess and differentiate creditor risk across banks' liability structures, as detailed in Moody's report "How Resolution Frameworks Drive Our Creditor Hierarchies." The bank resolution and bail-in frameworks in the US, EU, and Switzerland all aim to limit the use of public funds in bank resolutions while mitigating risks to financial stability. Important differences in these frameworks include the degree of power authorities have to write down or convert capital instruments, differences in depositor preference, and variations in the obligations of holding companies to their operating companies - Close Brothers has reportedly acquired advisory firm Mackay Stewart & Brown for an undisclosed amount. Andy Cumming, head of advice at Close Brothers Asset Management, said the acquisition would strengthen the national advice firm’s Scottish operation.

BofA Merrill Lynch says Investor market sentiment slowly improving in Europe

Tuesday, 14 August 2012
BofA Merrill Lynch says Investor market sentiment slowly improving in Europe Bank of America Merrill Lynch today presented the results of their August Fund Manager Survey, reporting a global increase in investor confidence buoyed by expectations of ECB policy initiatives. http://www.ftseglobalmarkets.com/

Bank of America Merrill Lynch today presented the results of their August Fund Manager Survey, reporting a global increase in investor confidence buoyed by expectations of ECB policy initiatives.

Fully 80% of the 173 fund managers surveyed by BoAML at the start of the month believed that the ECB would engage in additional quantitative easing by the year end (and ~40% within the next month), compared to fewer than 50% who thought the Federal Reserve would take measures in the USA this year.

European equities strategist at the bank, Manish Kabra, said, “Draghi’s statements have been largely successful in removing investor pessimism and have alleviated some pressure on the Eurozone- global asset allocations are still underweight towards Europe, but we have seen the largest uptick in sentiment since early 2009.”



This sentiment has been expressed by increased asset allocation in the Eurozone, whilst fund managers are moving to reduce previously overweight positions in US equities. Kabra states, “Earnings season hasn’t been great in the US- particularly technologies, but we are seeing sentiment to real estate improving on the back of US stabilisation in the sector.”

Less than 10% of managers are now ruling out any form of QE by the ECB due to the promise of policy stimulus, and overall positions are showing small shifts in favour of equities and commodities over bonds. Cash holdings were slightly reduced but remain at historically high levels of 4.7% portfolio value. It is worth noting that despite the improving sentiment, attitudes to Europe are still net 13% negative overall. The ECB’s rhetoric has calmed nerves, but needs to translate into action or the Eurozone equity rally could be short-lived.

Globally, investor outlook has improved in the past month- fears over the Eurozone have diminished (although are still listed as the premier global tail risk) and growth expectation have risen. However, as the January 1st 2013 expiry date for the Bush tax cuts approaches, the fear of the US “fiscal cliff” as number one global risk have increased by 16%.

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