ECB expiry hits euro June 29, 2010 IT IS crunch time for the European Central Bank (ECB) and the single currency this week. As of tomorrow, Eurozone banks will no longer be able to tap the central bank for unlimited long-term loans. It has already indicated that it will not renew its €442bn 12-month long-term refinancing operation (LTRO) and is likely to [...]
Inefficient FX markets offer an opportunity June 29, 2010 THE currency market is the most liquid in the world. Turnover tops $3.1 trillion a day, which dwarves both the equity and bond markets. Given the ubiquity of currency trading, it’s easy to assume that the FX markets would be efficient. But that is not the case. American Century Investments, an investment management firm, believes [...]
DEBT WORRIES RAISE MARKET INSTABILITY June 29, 2010 GEORGE TCHETVERTAKOV HEAD OF MARKET RESEARCH, ALPARI GOVERNMENT bond yields in developed countries have been steadily falling over the course of 2010 alongside a broad retrenching of risk preferences. Fiscal austerity measures are being implemented across Europe following the emergence of plausible default risk. The cuts planned in most EU countries are being supplemented by [...]
austerians take on the keynesians June 29, 2010 BORIS SCHLOSSBERG DIRECTOR OF CURRENCY RESEARCH, GFT WILL the new Austerians or the old Keynesians win the public policy debate on economic growth going forward? The contrast between the two became evident last weekend at the G20 summit when the UK and the US moved in opposite directions. The new Austerians were led by the [...]
THE TIPSTER June 29, 2010 AS RISK aversion rises and US yields fall back, we have seen the yen gain ground especially against the high yielders, particularly the Australian dollar and New Zealand dollar. This could start to make Japanese exporters uncomfortable as we head back towards the flash crash lows of 6 May at ¥ 87.95 against the US [...]
A perfect storm threatens law firms June 29, 2010 IF any lawyers thought that the effects of the downturn on law firms are over, then they would have got a rude shock last week when Halliwells announced that it was going into administration. It was a clear sign that law firms have to change if they want to survive. While many have bumbled along [...]
A TRADER NEAR YOU STARS IN KIDS’ BOOK June 29, 2010 FINALLY! Proof that City traders aren’t all heartless: Danny Wilkinson, trader at an unidentified international broker, is today publishing a children’s book written with his aunt, Linda Wilkinson. The book, the first of a trilogy planned on “The Oonford Detective Agency”, was inspired by people Wilkinson has met during his 21 years on the trading [...]
Catlin poised to set up Swiss reinsurer June 29, 2010 London-listed property and casualty insurer Catlin yesterday said it planned to set up a new venture in Switzerland to boost its presence in the European reinsurance market. Bermuda-based Catlin will provide the new operation, Catlin Re Switzerland, with capital reserves of at least $1bn (£662m). Catlin said the new venture would allow it to benefit [...]
China’s AgBank to cut costs as it tries to soothe investors June 29, 2010 Agricultural Bank of China will see its cost-to-income ratio fall by five to eight percentage points after its public offering, the bank said yesterday, as it tries to ease investor concern about its high cost base. Every one percentage point fall would lead to a subsequent 2bn yuan jump (£195m) in net profit, bank vice-chairman [...]
MINERVA SECURES £107M FLATS SALE June 29, 2010 MINERVA, the London commercial and residential developer, said yesterday that it had sold 11 apartments at its Lancaster Gate scheme, overlooking Hyde Park, for £107.5m. The off-market deals increased the level of presales at the scheme to £230m, which represents half of the space. The official launch of the scheme began last week.
