Dollar’s days as the world’s only reserve currency could be numbered September 23, 2009 OVER the next two days, world leaders gathered at the G20 summit in Pittsburgh will attempt to address the issue of the persistent global imbalances that have been cited as a long-term cause of the recent economic downturn. Integral to this debate has been the long-standing issue of the US dollar’s hegemonic status as the [...]
The return of risk appetite boosts nuclear, natural gas and coal ETFs September 23, 2009 WITH the UN climate change summit and the G20 meeting later this week, countries’ energy policy is expected to be a hot topic this autumn in the build up to the UN climate change conference being held in Copenhagen in December. Pressure is building on advanced economies to reduce their carbon emissions and develop cleaner [...]
ETPS HAVE BEEN BOOSTED BY CRISIS September 23, 2009 NIZAM HAMIDHEAD OF SALES STRATEGY, ISHARES EUROPE WHILE trading volumes on equities have fallen by 46 per cent during the financial crisis, volumes in exchange-traded products (ETPs) have been comparatively healthy. Over the past year trading volumes in ETPs rose to €54bn from €37bn and as a proportion of trading, they have risen from about [...]
THE LONDON REPORT September 23, 2009 THE leading share index closed lower yesterday as falling commodity prices stung oil firms and miners while investors stayed cautious ahead of the conclusion of a US Federal Reserve policy meeting. The FTSE 100 ended 0.1 per cent, or 3.23 points, lower at 5,139.37, erasing gains from earlier in the session as shares on Wall [...]
Lawyers lobby G20 over emissions September 22, 2009 EARLIER this month UK lawyers issued a “communiqué” calling on the G20 to implement more effective regulation ahead of the Pittsburgh summit which begins tomorrow, and the UN climate-change convention in Copenhagen in December which is expected to produce a successor to the Kyoto agreement. So, why should world leaders listen to a bunch of [...]
OFT SENDING OUT MESSAGE TO BUSINESS September 22, 2009 MICHAEL GRENFELLCOMPETITION LAW PARTNER AT NORTON ROSE LLP THE huge fines imposed yesterday by the Office of Fair Trading (OFT) on UK construction companies for cartel activity send a strong signal to British business generally: the authorities will penalise anti-competitive behaviour, even in a recession. The fines totalling £129.5m on 103 construction firms for bid [...]
Baltic blues disperse as strength returns September 22, 2009 SINCE the start of the financial crisis, the Baltic states have cast a long shadow over their Scandinavian and Eastern European neighbours. Swedish banks, which lent heavily to the Baltic states in euros, now find themselves running a high risk of loan default. Sweden’s Swedbank, which is the Nordic bank most heavily exposed to the [...]
Everything is pointing to a bumper year for the Aussie September 22, 2009 ALTHOUGH recent concerns of a Chinese asset bubble and fears of a double dip recession have had some effect on Australia, the country has been outshining the other advanced economies throughout the financial crisis. Similarly, the Australian dollar has been among the best performing currencies this year. The Australian dollar is up 22.3 per cent [...]
WHY DOLLAR COULD RALLY AHEAD OF G20 September 22, 2009 BORIS SCHLOSSBERGDIRECTOR OF CURRENCY RESEARCH, GFT NOW that the dollar has replaced the yen as the primary carry trade funding currency, the greenback has become even more sensitive to risk assumption and risk aversion flows. Since the carry trade depends on stable or widening interest rate spreads, any hint of economic turbulence will spark fears [...]
THE LONDON REPORT September 22, 2009 BRITAIN’S top share index edged higher yesterday as miners and oil stocks buoyed by firmer commodity prices lent support, though with investors nervous before the group of 20 leaders’ meeting at the end of the week. The FTSE 100 closed 8.24 points, or 0.2 per cent, higher at 5,142.60, after ending Monday’s session 0.7 per [...]