Saturday 25th May 2013
FTSE-GM---ticker-sponsor-logo-DB
The FTSE 100 suffered its sharpest one-day drop in over a year yesterday, closing down 2.1% at 6,696.79, as equity traders around the world reacted to news that the US Federal Reserve could apply brakes to its stimulus programme - India has appointed Goldman Sachs Asset Management to create and launch an exchange-traded fund designed to raise money from investors and invest in state-run companies - Derivatives marketplace Eurex Exchange will start a new initiative to increase the attractiveness of its short-term interest rate derivatives segment - Legal & General has completed the acquisition of fund platform company Cofunds by purchasing the remaining 75% of its share capital, according to an update issued by the group today - Citi has won a new mandate to provide hedge fund administration services to NWI Management (“NWI”), a New York-based investment adviser - Singapore state investor Tamasek has bought a stake in data provider Markit. The deal, which had been speculated on for the last two weeks, is reported to be worth $500m, securing Tamasek a 10% stake - SunGard has added to its suite of algorithms in a bid to support trading in the Japanese equity market - BlackRock is set to double the amount of money it has invested in real estate after reaching a deal to buy independently managed real-estate advisory business MGPA - US asset manager Vanguard will benchmark four new Irish-domiciled exchange-traded funds (ETFs) to a range of FTSE indices - JPMorgan will end its transition management operations in the US, Europe, Middle East and Africa -
South America
Bill Hodgson, independent consultant, The OTC Space.
Tuesday, 21 May 2013

Safe and profitable markets?

At a recent conference I took one side of a debate on the motion "This house believes new regulations will deliver safe and profitable capital markets". The specific regulations weren't defined, but assumed to include Dodd Frank, EMIR and others.  The focus of regulators in all these cases isn't to create profit opportunities of course, so the emphasis I put on the debate was safety. One catalyst for new regulations was 2008, and the impact on what the Americans call 'main street', where ordinary people had to fund bail-outs of various banks to the tune of billions or trillions of dollars. In this case, does Dodd Frank and EMIR insulate Main Street from future crises? Can we each explain to our families who don't give a hoot for derivatives that banking is now under control? Bill Hodgson, principal, The OTC Space, reports.

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Aon Risk Solutions's latest survey/global map of terrorism and political violence points to a continued threat of a terrorist attack or political violence as 44% of countries measured have an identifiable risk of terrorist attacks.This trend, says Aon, is especially prevalent in African and the Northern African countries. Despite 19 countries showing improved terrorism and political violence ratings, including the United Kingdom and Germany, data and analysis reflected by the map suggest continued and growing awareness is needed for businesses looking to expand. 

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The International Monetary Fund has called on Latin America to take advantage of favourable external conditions to lay the grounds for sustained growth by strengthening its policy buffers.

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The global economy is likely to expand through 2014 as the recovery in the US strengthens and eurozone growth picks up, but formidable challenges remain, according to Standard & Poor's Ratings Services global chief economist Paul Sheard.

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Wednesday, 17 April 2013

IMF cuts global growth forecast

The International Monetary Fund projects global growth at 3.3% this year, down from 3.5% six months ago. In its latest global outlook, the IMF says the main reason behind the growth prospects has been an uneven recovery among advanced economies. Fiscal brakes in some countries were another important factor.

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Standard Life Investments has hired Jeremy Lawson to its global strategy team as senior international economist. Lawson will report to Andrew Milligan, head of global strategy at Standard Life Investments, and will be responsible for economic forecasting and ideas generation for Multi Asset Investing.

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Global investors have lowered their risk appetite and are forecasting a slowdown in global growth, according to the latest BofA Merrill Lynch fund manager survey. Anxiety over the eurozone and new risks, particularly the potential for conflict in Korea, has intensified and caused an increase in cash holdings and a sharper preference for regions including the US and Japan.

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Research from independent financial research and advisory firm, Aite Group shows that Latin American stock exchanges offer more trading opportunities for European investors than many previously realized. Indeed, equity markets across Latin America are seeing gains as they exploit initiatives aimed at integrating stock markets, adding new products, and improving market liquidity. It is clear, says the consultancy, that capital markets in emerging LatAm countries have grown in both value and complexity over the last decade. 

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