Tuesday 24th May 2016
News ticker: Tuesday, May 24th: Morningstar has upgraded the Schroder Japan Growth investment trust to a Morningstar Analyst Rating™ of Gold. The investment trust previously held a Silver rating. Peter Brunt, senior manager research analyst at Morningstar, comments: “The fund previously held a Silver rating. We continue to hold fund manager Andrew Rose, the supporting team and the structured process in high regard. Our concerns over the use of gearing have decreased over time, and we no longer see a reason to hold this closed-end vehicle at a differentiated rating to the identically managed Schroder Tokyo OEIC. The fund is therefore upgraded to Gold.” - The SYRIZA/ANEL coalition government secured late yesterday parliamentary approval of a key multi-bill incorporating the legislation required for the implementation of the remaining prior actions attached to the 1st programme review - Turkey’s Halk Bank has partnered with: Intellect Design Arena Limited to automate their Debt Management processes. Intellect’s Debt Management System will enable the Bank to manage its collections and recoveries more effectively and efficiently. The global lending portfolio is expected to be $38trn by 2019, growing at an average of7.9% CAGR. With increasing loans and high expected levels of delinquency, there is an increasing emphasis on strong debt management processes to devise powerful strategies for timely collection. Banks are spending to acquire customers and retain them on the one side, and on the other, they are also spending on collecting owed debt - Following what the asset manager describes as steady growth in the assets of the Threadneedle UK Absolute Alpha Fund, Columbia Threadneedle says it is currently monitoring flows in the fund with the potential to apply further containment measures. The Threadneedle UK Absolute Alpha Fund is managed by Mark Westwood and Chris Kinder, the fund takes long and short positions to deliver an absolute return to clients. As of end April 2016 the fund was £988m, having grown from £373m a year ago. Gary Collins, head of Wholesale, EMEA, at Columbia Threadneedle Investments says. “Our priority is always to protect the interests of existing investors and we have ceased marketing activity and new client pitches over the past year to manage inflows into the Threadneedle UK Absolute Alpha Fund. We are now monitoring new flows with the potential to apply further measures to limit demand if necessary to ensure the investment integrity of the fund is retained.” - Moody's has today withdrawn the A3 issuer rating of BP Finance PLC, a wholly-owned subsidiary of BP plc (rated A2, positive outlook) for what it says are business reasons - Dragon Capital, says it will list its flagship fund, Vietnam Enterprise Investments Limited (VEIL), on the main market of the London Stock Exchange sometime in July this year. Launched in 1995, VEIL is the largest and longest-running fund focused on Vietnam with a Net Asset Value (NA) of approximately $850m. The London listing is expected to create a more transparent and liquid market in VEIL's shares, widening potential ownership, attracting greater analyst coverage, increasing VEIL's profile and narrowing the discount to NAV at which the shares currently trade. Approximately half of VEIL's NAV is represented by stocks which are at their foreign ownership limits and cannot otherwise be accessed by foreign investors. The move is timely: Vietnam’s GDP rose 6.7% last year – Guaranty Trust Bank plc (GTBank) says it has redeemed the outstanding portion of its $500m eurobond notes due on May 19th. The bank issued a cash tender offer back in February to repurchase all the outstanding eurobond notes (priced at 7.5%), which it says was well received by investors. The issue was the first involving a Nigerian issuer and was secured by its subsidiary GTB Finance, set against an irrevocable bank guarantee. A statement from the bank issued yesterday, an aggregate principal amount of $126,586,000 of the securities were successfully tendered. The outstanding was redeemed from the bank’s cash reserves – Elsewhere in Nigeria, the Federal High Court has ordered former Minister of Finance, Dr. Ngozi Okonjo-Iweala and the federal government to give account of how NGN30trn that accrued to government during the last four years of the former President Goodluck Jonathan's administration was managed.‎ Presiding judge, Justice Ibrahim Buba said in a statement that the former minister of finance and the government should have made the requested information available about the money or given reasons why it could not be obliged within the stipulated period in conformity with the Freedom of Information Act.‎ ‎The judgement was released in a formal statement by civil rights group, Socio-Economic Rights and Accountability Project (SERAP)‎ through the office of its deputy director, Olukayode Majekodunmi, saying it embarked on the suit, tagged: FHC/L/CS/196/2015, ‎following the allegations by the former governor of Central Bank of Nigeria (CBN), Charles Soludo, that at least NGN30trn "has either been stolen or unaccounted for, or grossly mismanaged over the last few years under the watch of Dr Ngozi Okonjo-Iweala. At the same time, local press report that ex-President Jonathan Goodluck may have gone into exile in the Cote d’Ivoire. It seems that the Economic and Financial Crimes Commission (EFCC) is about to arrest him to face corruption charges, which would signal a total turnaround for the president whose administration was based on tackling graft in the country - US monetary policy continues to exert its influence on markets. Trading volumes are thin anyway, but clearly there is a risk off sentiment running through and this won’t change until the next FOMC meeting decision; it might be that the market has now factored in a rise in June despite mixed data emanating from the US. Right now, there are more pressing worries about the outcome of the upcoming G7 meeting, with expectations that the group will fall apart over the application of monetary policy. The outcome of the Ise-Shima G7 summit on May 26th and 27th will weigh on markets for most of this week as the US talks increasingly stridently about the ‘threat’ of competitive currency devaluation. What is a central bank with a rising currency such as the yen and declining exports (down 10.1% in April on a year on year basis) meant to do? The other worrying trend is the increasingly racist and toxic tone of the Leave camp in the Brexit campaign. How many insults can be directed at ‘foreigners’ in the UK without someone calling for restraint? - Asian markets had a mixed day. That inverse relationship between the yen and the Japanese stock market was still writ large today. The Nikkei 225 closed down 81.75 points, or 0.49 percent, at 16,654.60, retracing earlier losses of more than 1.5%, while the dollar-yen pair ultimately retreated to 109.75/$1.00. The Kospi rose 0.39% but the Hang Seng lost 0.38% over the day. The Shanghai Composite rose 0.66% while the Shenzhen Composite did better, rising 1.45%, across the water the ASX200 was down 0.6%. The Straits Times Index (STI) ended 3.11 points or 0.11% higher to 2766.93, taking the year-to-date performance to -4.02%. The top active stocks today were DBS, which gained 0.53%, Global Logistic, which declined 1.64%, SingTel, which gained 0.78%, OCBC Bank, which gained 0.36% and UOB, with a0.56% advance. The FTSE ST Mid Cap Index declined 0.08%, while the FTSE ST Small Cap Index rose0.14% - Today, traders will be watching PMI data from France, Germany, and headline eurozone.

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FTSE and Cürex Group announce global partnership and launch real-time executable benchmarks for spot FX

Tuesday, 12 June 2012
FTSE and Cürex Group announce global partnership and launch real-time executable benchmarks for spot FX FTSE the global index provider, and Cürex Group, a developer of intellectual property and technologies that link institutional foreign exchange with global capital markets, have announced their worldwide partnership and the launch of the FTSE Cürex FX Index Series – a new range of independently calculated, 24/5 streaming, executable spot FX benchmark FIX for currency pairs and currency baskets. http://www.ftseglobalmarkets.com/

FTSE the global index provider, and Cürex Group, a developer of intellectual property and technologies that link institutional foreign exchange with global capital markets, have announced their worldwide partnership and the launch of the FTSE Cürex FX Index Series – a new range of independently calculated, 24/5 streaming, executable spot FX benchmark FIX for currency pairs and currency baskets.

 “FX is the World’s largest capital market and currency exposure affects investors in all asset classes. This new series of FX indices will be used by our clients world-wide as a better benchmark for managing currency risk and performance, and will support a wide range of passively managed FX currency funds and strategies,” says Mark Makepeace, chief executive of FTSE Group.

The FTSE Cürex FX Index Series is published in real time during the hours of the institutional OTC FX market, from 17:00 ET Sunday to 17:00 ET Friday.  Additionally, ‘snap’ indices are published every 15 minutes, 96 times per day, providing an independent, time-stamped valuation metric to enhance NAV calculation and fuel the creation of new currency risk management tools and investment products. Designed to be highly customizable, the index series enables market participants to combine any of the 192 pairs into custom calculated FX baskets.

New executable benchmark currency baskets include the flagship FTSE Cürex USD/G8 Index, an equally weighted, real-time index designed to provide an improved valuation of the US Dollar. The index consists of seven major currencies representative of global finance and commodity trading, plus the Chinese Renminbi – the most important emerging Asian reserve currency.  These new benchmark FX Indices also can be used to measure the performance of active currency strategies, and provide new tools for investors seeking to express a ‘risk on / risk off’ trade.

The FTSE Cürex FX Index Series has been built to FTSE’s renowned standards of index design, which emphasizes transparency, independence, innovation and strong governance. The indices are available directly from FTSE and via major global data vendors. 

“The FTSE Cürex FX Index Series represents a step forward in the evolution of the global foreign exchange marketplace.  As the most advanced series of executable FX benchmarks and custom FX Indices created to date, the FTSE Cürex FX Index Series enables unprecedented capabilities for both Buy-Side and Sell-Side leaders seeking to provide more competitive products and liquidity to the world’s capital markets.  We anticipate significant new product and risk management solutions to emerge for the benefit of international investors, asset owners and those who move capital across borders in their normal course of commerce,” adds William Dale, chairman and chief executive at Cürex Group.

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