European idiocy at heart of crisis July 18, 2011 Once again, regulators have failed spectacularly. Gold hit £1,000 an ounce today for the first time, as equities fell, Club Med government bond yields jumped, spreads increased and the fear and loathing in the credit markets intensified – and all of that in response to the EU’s banking stress tests on Friday night, which were [...]
European idiocy at heart of crisis July 18, 2011 Once again, regulators have failed spectacularly. Gold hit £1,000 an ounce today for the first time, as equities fell, Club Med government bond yields jumped, spreads increased and the fear and loathing in the credit markets intensified – and all of that in response to the EU’s banking stress tests on Friday night, which were [...]
CDS confusion grips market June 20, 2011 EUROZONE efforts to avoid a “credit event” in Greece have thrown the region’s credit default swap (CDS) market into confusion and ramped up the cost of insuring the sovereign’s debt. According to data from Markit, Greek CDSs are now the most expensive in the world, with a five-year swap costing 2,000 basis points, meaning it costs [...]
Allianz sells first insurer coco bonds July 5, 2011 GERMAN insurance group Allianz sold €500m (£451m) of so-called “coco” bonds to privately-owned Japanese insurer Nippon Life yesterday in the first use of such instruments in the sector. The contingent convertible bonds Allianz created can convert to common equity in the insurer within ten years of being issued, in the event of certain conditions it [...]
FTSE turns downwards on unease over France’s banks August 10, 2011 SHARPLY weaker banks dragged Britain’s top shares lower yesterday as fears about Europe’s debt came into sharp focus on rumours France may be in danger of losing its triple-A credit rating, and on concerns over the outlook for French banks. The UK benchmark index ended down 157.76 points, or 3.1 per cent, at 5,007.16, its [...]
FTSE steady but drinks industry takes a hit August 24, 2011 THE FTSE edged up on opening but investors remained jittery ahead of a key Fed meeting on Friday and a string of company results – particularly in the beverage industry – which showed weak consumer demand. US Federal Reserve Chairman Ben Bernanke is set to make a key speech at an annual central bank conference [...]
WHAT THE OTHER PAPERS SAY THIS MORNING August 7, 2011 FINANCIAL TIMES INVESTOR IRE SPARKS ICAP PAY REVIEW Icap, the largest interdealer broker, is to undertake a thorough review of its remuneration policy for the first time in eight years. The FTSE 100 group is making the move after a substantial minority protest vote at the annual meeting in mid-July. ONGC EYES SALE OF DEEPWATER [...]
Tensions rising again in the markets August 25, 2011 WHEREVER one looks, there is danger in the air. Global equities are down 10.2 per cent in August and 11.3 per cent in the year to date. European and UK shares are down 13 and 10.4 per cent respectively in August, and 16.8 per cent and 11.5 per cent so far this year, Evolution Securities [...]
HSBC unveils surprise rise in earnings August 1, 2011 HSBC defied the equities gloom to jump 2.19 per cent yesterday after unveiling a rise in profits versus expectations of a decline. The bank saw its half-year pre-tax profit rise to $11.5bn (£7.1bn), three per cent higher than the same period last year, allowing it to boost its dividend for the period by 13 per [...]
BofA hit by AIG’s $10bn legal action August 8, 2011 BANK of America shares fell to their lowest level since April 2009 over fears of the slowing US economy and challenges to a multi-billion dollar mortgage settlement. Although most bank shares were knocked by the market turmoil, Bank of America’s shares were worst hit after insurer American International Group (AIG) said it would sue the [...]