Monthly Archives: December 2012

Time is ripe for the markets’ ‘great rotation’

Farmers rotate crops to maximise harvests from their fields. As 2012 ends, the same principle could apply to financial markets. Strategists wonder whether the next year will be the time of a “Great Rotation”, a significant acceleration in flows out of safe, recession-proof assets such as government bonds and into equities. Click to enlarge Investors have seen central banks sowing…

Nikkei notches up best year since 2005

The Japanese stock market has completed its best year since 2005 as investors were swept up by the business-friendly rhetoric of Shinzo Abe, confirmed this week as the country’s new prime minister. The benchmark Nikkei 225 stock average closed on Friday at 10,395, its highest level since March 2011, bringing total gains for the year to 23 per cent. The…

US budget impasse curbs Asia markets

Friday 03:20 GMT. Asian markets were higher as Japanese shares extended gains to hit a high for 2012 on the back of a weaker yen, but gains were limited by concerns US policy makers may run out of time to avoid the looming fiscal cliff. US President Barack Obama is scheduled to meet congressional leaders later in the day in…

Japan exchange aims to attract more IPOs

©Bloomberg The president of the Tokyo Stock Exchange has vowed to turn the bourse into Asia’s top destination for companies seeking funds for growth, on the eve of a merger with its rival Osaka-based exchange. In an interview with the Financial Times, Atsushi Saito, president-elect of the new group to be known as JPX, said that attracting stock listings by…

DTCC opens data centre in Singapore

Asia took its first step towards establishing a trade repository for off-exchange derivatives as The Depository Trust & Clearing Corporation, the US-based post-trade group, said it had opened a data centre in Singapore. The move highlights how the infrastructure required for capturing and storing records of over-the-counter (OTC) trades is starting to be built in the region, in compliance with…

Europe’s tale of two wheat contracts

The year has been one of the tale of two European wheat contracts – and the influence of one country: Russia. Comment by email Sign up here to receive The Commodities Note direct to your email inbox daily On the one hand, the Matif milling wheat contract has had a good year. The benchmark traded on NYSE Euronext in Paris,…

Spotlight swings to interdealer brokers

The UBS Libor settlement swings the spotlight on to the role of interdealer brokers in the burgeoning scandal, alleging that employees at these institutions actively “colluded” with rate-fixing efforts – and were handsomely rewarded for it. According to the final notice published by the UK Financial Services Authority, four UBS traders worked through the brokers to try to influence the…

Captain Compliance vanquishes Captain Chaos

Spoof, a British pub game involving deception that was referenced by traders at UBS, typically has no single winner, just one clear loser. The Swiss bank itself is in that dismal position as it pays out $1.5bn to regulators to settle allegations of Libor fixing. “Trader A”, as a final notice from the Financial Services Authority calls him, tried to…

Asian shares rise on US budget optimism

Wednesday 03.00 GMT. Asian shares extended gains on growing confidence that Washington will reach a deal in US budget talks, while Japan’s Nikkei index topped 10,000 for the first time since April on expectations of aggressive monetary easing. Investors were focused on US efforts to avoid the looming fiscal cliff – $600bn worth of automatic spending cuts and tax hikes…

Sants secures £3m package at Barclays

©Shaun Curry Hector Sants will receive a total remuneration package worth as much as £3m as part of his move to Barclays next month, according to people familiar with the deal. The package will make the former chief executive of the Financial Services Authority, who is set to become Barclays’ head of compliance and government relations at the end of…