Monthly Archives: October 2012

Wall Street contingency plans take heat

Flawed back-up systems marred Wall Street’s return to work on Wednesday, while exchanges and regulators blamed a lack of disaster preparation by some market participants for the extended break in trading. Michael Bloomberg, mayor of New York City, received sustained applause from traders when he rang the opening bell on the New York Stock Exchange on Wednesday morning, putting an…

Power outage stops Knight Capital trading

For the second time in three months, Knight Capital was forced to shut down trading and advise traders to route orders elsewhere after suffering a power outage on Wednesday. The electronic trading and market-making company said back-up generators powering its headquarters in Jersey City, New Jersey failed just before midday in New York, bringing its business to a halt. The…

Concern at Intesa debt exchange offer

Investors and analysts are up in arms over the terms of a bond exchange offer made by Italy’s Intesa Sanpaolo, which some argue is “aggressive” and potentially “gamechanging” for bondholders. The Italian bank last week announced that it would offer to exchange some of its existing tier two subordinated bonds for a new five-year senior bond. Click to enlarge Bond…

EU short selling rules spark confusion

Late and complex guidance from regulators has left the markets unprepared and confused ahead of today’s imposition of the first pan-EU rules on short-selling, according to brokers, traders and investors. The far-reaching regulation, which was finalised in March, imposes tough disclosure requirements for investors who place large bets that the prices of EU-listed shares or bonds will fall. The legislation…

Swiss boost holdings of UK debt

Switzerland has emerged as one of the biggest overseas buyers of UK government debt as it seeks to offload a huge stockpile of euro accumulated during its push to weaken the Swiss franc. The Swiss National Bank more than doubled its holdings of sterling in the third quarter of the year in an effort to reduce its exposure to the…

Hong Kong harbours ‘hot money’ misgivings

When you squeeze a balloon, you can never be sure where the bubble will pop out. This is something like the uncertainty faced by investors, analysts and economists watching Hong Kong as the monetary authorities react against an apparent influx of “hot money”. Click to enlarge Banks, the stock market and property could all feel the effects of these inflows…

Draghi expands role in fight to save euro

Like a company chief executive feted by analysts for stopping losses but who has failed to generate shareholder returns, Mario Draghi still has much to prove as he enters his second year in office. Formally, his job as president of the European Central Bank is to ensure he guides interest rates so prices neither rise nor fall precipitously over the…

US Treasury to issue $72bn of debt next week

The US Treasury announced $72bn of debt sales for next week and said it remained on track to issue floating rate notes in 2013 but had yet to decide on approving negative interest rates for short-term bill sales. The Treasury said it expected the Federal debt ceiling would be hit by the end of the year, but said accounting manoeuvres…

TNK-BP minority investors left in doubt

Igor Sechin added to concerns about investor rights in Russia when the Rosneft chief executive said the state-controlled oil group had no obligation towards minority investors in TNK-BP. He was speaking as Rosneft moved ahead with plans to buy TNK-BP, Russia’s third-largest oil producer, in a $55bn deal. The deal will be a bonanza for TNK-BP’s owners, BP and a…

Petrol prices surge in hurricane aftermath

Benchmark petrol prices surged in the aftermath of hurricane Sandy as power outages in the New York region threatened to stall deliveries of the fuel. Nymex November reformulated gasoline, or RBOB, futures rose as much as 7.7 per cent to $2.9375 per gallon on Wednesday, the contract’s final day of trading. It was the second time since September that futures…