Saturday 29th August 2015
NEWS: Friday, August 28TH: The Hong Kong Monetary Authority says it has granted a restricted banking licence to Goldman Sachs Asia Pacific Company Limited (GSAPCL) under the Banking Ordinance. GSAPCL, incorporated in Hong Kong, is a wholly-owned banking subsidiary of the Goldman Sachs Group, Inc. The number of restricted licence banks in Hong Kong is now 24 - Apple launched its first Australian dollar corporate bond issue, raising $1.2bn within two hours this morning. Strong demand for the US tech giant’s fixed and floating, four and seven year Kangaroo bonds saw the firm outstrip predictions it would raise between $500m and $1bn. Apple bonds are popular because the AA+ rated company is considered an ultra-safe investment, although yields are correspondingly low — about 3% on four-year bonds and about 3.8% on seven-year bonds - The European Securities and Markets Authority (ESMA) has published the responses received to the Joint Committee Discussion Paper on Key Information Document for PRIIPS. The responses can be downloaded from the regulator's website - Romania’s MV Petrom reportedly is planning a secondary listing on the London Stock Exchange. According to Romanian press reports, the local investment fund Fondul Proprietatea may sell a significant stake in the company via public offering on the Bucharest Stock Exchange and London Stock Exchange. OMV Petrom, with a current market capitalisation of €4.85bn has announced that it will ask its shareholders’ approval for a secondary listing in London. The general shareholders meeting is scheduled for September 22nd. Austrian group OMV, holds 51% of the company’s shares; other shareholders include the Romanian state, via the Energy Ministry, with a 20.6% stake, and investment fund Fondul Proprietatea, which holds 19%. The remaining 9.4% is free-float - Morgan Stanley (NYSE/MS) today announced the launch of a new fund, the IPM Systematic Macro UCITS Fund, under its FundLogic Alternatives plc umbrella. The fund provides exposure to IPM’s Systematic Macro strategy, which is based on IPM’s proprietary investment models that provide unique insights into how fundamental drivers interact with the dynamics of asset price returns. The FundLogic Alternatives Platform currently has more than $2.6bn in assets under management (as of 31 July 2015) and this latest addition expands Morgan Stanley’s offering of global macro strategies - Equities sold off hard this morning as continued pressure on Chinese stocks rippled throughout world markets. Chinese government intervention brought the Shanghai Composite back a positive close; but the question is now, has confidence eroded so much that the market will continue to depend on the government to prop it up? The other key element to consider today is the outcome of the debate in the German parliament on the Greek bailout. Last month, a record 65 lawmakers from the conservative camp broke ranks and refused to back negotiations on the bailout. The daily Bild estimated that up to 120 CDU and CSU members out of 311 might refuse to back the now-agreed deal. However, Chancellor Merkel is looking to secure support from the Social Democrats (SPD), Merkel's junior coalition partner, and the opposition Greens which will likely swing the final decision Greece’s way. However, a rebellion by a large number of her allies would be a blow to the highly popular Chancellor.

Latest Video

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%.

Related News

Related Articles

Related Blogs

Related Videos

Current Issue

Tweets by @DataLend

DataLend is a global securities finance market data provider covering 42,000+ unique securities globally with a total on-loan value of more than $1.8 trillion.

What do our tweets mean? See: http://bit.ly/18YlGjP