Monthly Archives: September 2013

EuroCCP narrows losses on higher market share

Pre-tax losses at EuroCCP narrowed by a fifth last year as Europe’s largest cash equities clearing house grabbed a leading market share from new clearing arrangements. However, the pre-tax loss of €12.4m was the fifth consecutive year of losses for the UK clearer, which offers an “at-cost” model, and which required a further cash injection of €22m from its US…

Former Xstrata chief’s venture wins $1bn

Mick Davis has raised $1bn for his new mining venture in a bet by investors that the industry heavyweight can master the commodities cycle and replicate his record in making Xstrata one of the world’s largest resources groups. Noble Group, the commodities trading house, and private equity group TPG are putting $500m each into X2 Resources, set up by Mr…

US asset managers face tighter scrutiny

In a sign that asset managers could be the next group of financial institutions to face tighter government regulations, the US Treasury’s Office of Financial Research issued a report on Monday detailing the ways in which the industry could create vulnerabilities in the financial system. The data will be used by the Financial Stability Oversight Council, which requested the report…

Washington worries hit US energy stocks

US energy stocks were part of a broad pullback on Monday as investors took guarded positions hours before a possible shutdown of the US government. The energy sector fell 0.8 per cent as all 10 major areas of the S&P 500 traded lower. ExxonMobil dropped 1 per cent to $86.04, Chevron fell 0.9 per cent to $121.50, ConocoPhillips moved 1.1…

Weidmann in sovereign debt warning

©Bloomberg Jens Weidmann, Deutsche Bundesbank president Jens Weidmann, president of the Bundesbank, has risked angering Europe’s crisis-hit governments by warning of the dangers posed by high levels of sovereign debt on banks’ balance sheets. Writing in the Financial Times, Mr Weidmann demands that lenders cut their holdings of government bonds and set aside more capital to reflect their riskiness. “The…

Noble secures $400m zinc deal

Noble Group, the commodities trading house, has won the hotly contested battle to replace Glencore as the buyer of zinc in Europe from Nyrstar, the world’s largest producer of the metal. Glencore agreed to terminate its contract to buy 350,000 tonnes of Nyrstar’s European zinc output in order to win European Union approval for its merger with Xstrata. The Nyrstar…

Currency anger poses threat to trade talks deal

©Bloomberg When, in the 1990s, Sandy Levin, the veteran congressman, was looking for an example of Japanese trade barriers and the competitive advantage carmakers there gained from a weak yen he headed to Joe’s Auto Parts in Royal Oak, Michigan. There, Mr Levin bought a universal joint for $11.46. When he took it to Japan, the Michigan Democrat says, he…

Hedge funds move out of shorts

Hedge funds’ bets on falling share prices have dropped to their lowest level in years as traders predict an extended bull run for equities over the coming months. According to data from Markit, the overall value of short positions on European shares has dropped to $144bn, the lowest level since the data provider began monitoring in 2006. In the US…

BP staff ‘not prepared for blowout’

BP was unprepared to respond to the 2010 Deepwater Horizon disaster, in spite of decades of warnings that an underwater well blowout was possible, lawyers for plaintiffs seeking damages over the spill have alleged. The company’s lack of planning before the explosion on the Deepwater Horizon rig, and bad decisions afterwards, meant that the spill lasted months longer than it…

UK housebuilders rise on Help to Buy move

UK housebuilders hit three-month lows last week on speculation that the government’s Help to Buy scheme would be reined back. Instead, it was brought forward. Persimmon, Bellway and Barratt Developments all rose against a falling London market on news that the mortgage subsidy scheme would be extended to all homes immediately instead of in January as planned. Analysts considered it…