Sovereign Oilfield collapses into administration as debt talks fail February 24, 2010 OIL engineering company Sovereign Oilfield Group called in the administrators yesterday after talks with its lenders to renegotiate the terms of its debt failed. The Aberdeen-based company appointed PricewaterhouseCoopers as administrator after failing to sell off parts of itself to pay down debt. PricewaterhouseCoopers said it would look to sell Sovereign Oilfield’s subsidiaries where it [...]
Banks boost FTSE on hopes that RBS results bring cheer February 24, 2010 BRITAIN’S top shares rose 0.5 per cent yesterday, led by banks and echoing gains on Wall Street as US Federal Reserve chairman Ben Bernanke assuaged fears of an earlier than expected interest rate rise. The FTSE 100 ended 27.83 points higher at 5,342.92 buoyed by the Fed chairman’s statement and after it had closed 0.7 [...]
Wall St rises after Bernanke pledge February 24, 2010 FEDERAL Reserve Chairman Ben Bernanke reassured lawmakers interest rates will remain low, driving US stocks higher yesterday as investors welcomed the promise of more cheap money. Banks, which have benefited from borrowing rates at historic lows, led the market higher. Bank of America was the Dow’s biggest percentage gainer, rising 2.45 per cent. Investors overlooked [...]
Understanding tracking error is key to savvy ETF investing February 24, 2010 EXCHANGE-TRADED products may have only just entered the mainstream and been accepted by the European investment community, but some market commentators are already questioning whether the end is nigh for these funds. This was indeed the question posed by financial blogger Felix Salmon, citing news reports of a recent piece of research from Morgan Stanley [...]
The Tipster February 24, 2010 FEARS over the size of Japan’s public debt have been growing since the onset of the Greek debt crisis. However, comparisons between Japan and Greece look over- done. Japan’s debt is mostly held by domestic investors, and the yield at which it can borrow is below that of Greece. This is helping ease investors’ fears [...]
INVESTORS’ GLOSSARY February 24, 2010 DISCOUNT RATE Last week the Federal Reserve announced that it would raise the discount rate by 25 basis points to 0.75 per cent. But what is the discount rate? According to the Federal Reserve Board, it is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional [...]
LISTED PRODUCT NEWS February 24, 2010 EXCHANGE TRADED CURRENCIES ETF Securities has just launched 10 new currency ETCs which will be listed on the German stock exchange. The new ETCs offer investors long or short exposure to the euro against other G10 currencies, including sterling, the yen, the Swiss franc, the Norwegian krone and the Swedish krona. The sovereign risk problems [...]
Only timely exit strategies will restore trust in Club Med states February 24, 2010 ONE year after the global bank crisis, investors’ worries have shifted from bank debt to sovereign debt. Western governments’ public deficits have grown considerably in a double-whammy of bank bailouts and fiscal stimulus. Those who question the effectiveness of the various stimulus programmes need only look at the sluggish growth in the fourth quarter of [...]
It’s time for some Eastern exposure February 24, 2010 THE financial crisis has only highlighted China’s position as the next economic superpower. Increasing investor interest in the world’s most populous country is underlined by tomorrow’s launch of fund management firm Fidelity’s China Special Situations Fund, which is run by its star asset manager Anthony Bolton. He plans to invest in Chinese companies that are [...]
An MBA is the gateway to the international marketplace February 24, 2010 AN Australian-born executive based in London and married to a South African banker, Nick Kontopoulos could be seen as the very essence of today’s globe-trotting business internationalist. However it wasn’t until his MBA studies led him to China that he thought that he might end up living and working there. Kontopoulos, a marketing business developer [...]