China and Brazil moved to action to control currencies October 19, 2010 CHINA sent financial markets into retreat yesterday as it announced a 25 basis point increase to its benchmark interest rate, taking one-year deposit rates to 2.5 per cent and one-year lending rates to 5.56 per cent. The increase, which takes effect from today, is the first in three years and was seen internally as a [...]
US and China set for trade talks October 19, 2010 The United States and China will hold annual high-level trade and economic talks the week of 13 December in Washington, a top US trade official said yesterday. US undersecretary of commerce Francisco Sanchez said he hoped for progress on resolving US concerns about Chinese barriers to its government procurement market and protection of US intellectual [...]
Unloved, unowned but undervalued: Emerging Europe shakes off its past October 19, 2010 SANDWICHED between the bright stars of emerging Asia and the fading light of the West lies Eastern Europe, an investment destination that is often forgotten and perennially unfashionable. This is partly because the region has struggled to shake off its Soviet legacy – at least in the minds of Western investors it is still tainted [...]
AIA to close IPO books early as investors jump to buy the shares October 18, 2010 THE PLANNED Hong Kong initial public offering of AIA, the Asian life insurance business of American International Group (AIG), is set to close two days earlier than anticipated after institutional investors rushed to pledge their interest in buying the shares, it emerged yesterday. AIA has indicated that it will price the IPO later this week [...]
QE2 IS LIKELY TO BE ABOVE $1 TRILLION October 18, 2010 CFD MARKET STRATEGIST, GFT FEW analysts now doubt that the Federal Open Market Committee (FOMC) will announce another round of quantitative easing (QE) at its November meeting. In fact, speculation has turned to the harm that Fed inaction could cause to the markets. After all, equities have been a one-way bet ever since QE2 became [...]
When weaving a commodities basket, traders must be skilful October 18, 2010 GOLD bullion was down 0.7 per cent to $1,361 while the dollar gained ground against all major currencies except the yen yesterday. Talk of the inverse link between these safe havens is not new and the chart below shows it in action over the last four days. But this relationship is not only true of [...]
China’s Mr Private Equity explains the new frontier’s hopes and risks October 17, 2010 VICTOR ZHIKAI Gao is staying at the Langham Hotel, down the road from the Chinese Embassy. Just off a plane from Beijing, and sipping green tea to stay ahead of his jet lag, he is in London to brief an investment bank on China’s rapidly developing private equity sector. Although jaded, he manages to be [...]
UN warns of currency war threat October 14, 2010 WORRIES over the US economy sent the dollar tumbling against most world currencies yesterday, prompting the UN to warn countries against an all-out currency war. The dollar reached $1.41 against the euro and near-parity with the Australian dollar, while a rush to hedge against a weak US dollar sent gold prices to a record high. [...]
WHAT THE OTHER PAPERS SAY THIS MORNING October 14, 2010 FINANCIAL TIMES AIA CHIEF FAVOURS ORGANIC GROWTH AIA will address questions about its growth by increasing profitability and expanding organically rather than by pursuing acquisitions, according to the chief executive of the $30bn Asian life assurer about to list in Hong Kong. Mark Tucker told the Financial Times that AIA, which is being sold by [...]
DO-GOODING HEDGE FUND AUTHORS STRIP MEAT OFF MERVYN’S BONES October 14, 2010 FOLLOWING on from The Capitalist’s coverage of the launch of The Gathering Storm – a compilation of essays by hedgies, with all proceeds going to charities chosen by the writers – the book’s august authors gathered yesterday for cucumber sandwiches and wine at the Centre for the Study of Financial Innovation. As the discussion galloped [...]