US stocks plummet over fears of eurozone chaos April 27, 2010 US stocks tumbled yesterday as downgrades of Greece and Portugal fuelled fear about eurozone economic stability, and a grilling of Goldman Sachs on Capitol Hill heightened the possibility of financial reform. Stocks posted their worst day in nearly three months and the CBOE Vix volatility index, Wall Street’s barometer of investor fear, jumped about 31 [...]
Bubble fears overdone in emerging markets April 27, 2010 IN SPITE of emerging markets’ strong rebound from the financial crisis and their rosy growth prospects, 41 per cent of European pension plans still have no exposure at all to this sector, according to an annual asset allocation report released earlier this month by Mercer, a consultancy. But this is changing in the wake of [...]
Hedge funds come back in first quarter April 27, 2010 HEDGE funds are starting to shine again. They have so far successfully navigated the turbulence in the financial markets this year. According to Credit Suisse/Tremont Hedge Index’s analysis of more than 5,000 funds, they posted returns of 3.1 per cent in the first quarter, outperforming traditional equity and bond indices. This helped them move towards [...]
FUND MANAGEMENT NEWS April 27, 2010 FUND MANAGERS BREAK DOWN THE WALLS Convergence between traditional asset managers and hedge fund managers is still an emerging trend although it has accelerated following the crisis, according to a new study called Breaking Down the Walls conducted jointly by Bank of New York Mellon and Greenwich Associates. It found that 52 per cent of [...]
DEBAUCHED BISHOPS AND OPTIMISM April 27, 2010 DICK TURPIN MANAGING DIRECTOR, ARTEMIS CHARITABLE. That’s the only word for investors’ sentiment these days, as markets move on up. It all reminds me of the attitude of the historian Gregory of Tours towards Droctigisilus, the debauched Bishop of Soissons around 545 AD: “Although he was a voracious eater, and drank immoderately, no one ever [...]
Play the election with sterling-kiwi April 27, 2010 EVERY poll putting the Liberal Democrats on a par with the Conservatives seems to result in sterling sinking a little lower. But with the effect of a hung parliament on the pound difficult to quantify, there are still plenty of foreign exchange traders who think there’s room for sterling to bounce even if we don’t [...]
Greece pushes the euro into uncharted seas April 27, 2010 EUROPEAN woes went from bad to worse yesterday after Standard & Poor’s, the rating agency, downgraded Greek and Portuguese debt. Greek debt at BB+ is now effectively junk status. Investors dumped the euro, causing it to fall nearly two cents against the US dollar. But what now for the single currency? It managed to maintain [...]
CLEGG EFFECT WEIGHING ON STERLING April 27, 2010 BORIS SCHLOSSBERG DIRECTOR OF CURRENCY RESEARCH, GFT EVER since Nick Clegg’s winning performance in the first television debate, the spectre of a hung parliament has tempered cable’s rally despite surprisingly positive UK economic results. The emergence of the Liberal Democrats as a political force has served to complicate matters considerably, increasing the possibility of an [...]
THE TIPSTER April 27, 2010 IN the FX markets it is currently a case of betting on hung parliament fears in the UK or troubles in the Eurozone. Greek debt concerns continue to cause weakness in the euro, which has plunged towards the £0.86 level. From here the pair could go either way. If you’re expecting further downside for the [...]
Bribery law heralds welcome scrutiny April 27, 2010 EARLIER this month, the Bribery Act 2010 received its Royal Assent, and it is currently anticipated to be in force by the latter part of the year. The Serious Fraud Office (SFO) is on record as saying that the Act will greatly assist its efforts in combating corruption both here and overseas. Certainly, the act [...]