Monthly Archives: December 2013

High-yield bonds benefit from rotation

Anyone looking at the stunning rise in US equities and losses in bonds this year would conclude that a ‘great rotation’ between the asset classes has defined 2013. From a performance perspective bonds have been truly buried by equities. The S&P 500 sports a rise of some 27 per cent since January, while the bond market’s benchmark, the Barclays Aggregate…

Boardroom trades December 21

Directors at Arcontech Group were buying shares in June just before a trading embargo imposed ahead of annual results. Dealers assumed that the show of confidence by senior directors Richard Last and Matthew Jeffs might herald forecast-busting results in August, so news of continued losses disappointed and the shares fell back to their June levels – as low as 10p…

Week in Review, December 20

A round-up of some of the week’s corporate events and news stories. Saab lands key Brazil fighter contract In a surprise move this week, Brazil announced that Saab’s Gripen would become its next fighter jet, sending the Swedish company’s shares nearly 30 per cent higher and the company’s bigger French and US rivals home empty-handed, writes Carola Hoyos. The $4.5bn…

BlackBerry swings wildly on Foxconn tie-up

BlackBerry shares swung wildly after investors looked past a $4.4bn loss and poor sales of its new series of devices to focus on the promise of a new manufacturing agreement and emerging market developments. After initially slumping almost 7 per cent in premarket trading, the shares surged to be as much as 17 per cent higher by midday in New…

CFTC extends reach over foreign companies

The Commodity Futures Trading Commission on Friday took another step in imposing some of its rules on overseas companies, in a move that is likely to spark more outcries over the agency’s over-reach. As part of sweeping reforms of the $400tn swaps market, the CFTC evaluated regulations from six overseas regions: Australia, Canada, the European Union, Hong Kong, Japan and…

ADM to pay $54m to settle bribery charges

Archer Daniels Midland has agreed to pay $54.3m to resolve civil and criminal charges that a subsidiary bribed government officials in Ukraine in return for tax refunds. The deal with US authorities ends an embarrassing chapter for the company, which has sought to polish its image after pleading guilty in a high-profile price-fixing scandal in the 1990s. However, it could…

Rosneft buys Morgan Stanley oil trade unit

Morgan Stanley has taken the first step towards dismantling its once-mighty commodities division with the sale of the US bank’s global oil trading business to Rosneft, the Russian state-controlled energy group. The bank was one of the original duopoly that dominated commodities on Wall Street, along with Goldman Sachs. But the business has struggled under both regulatory and financial pressures…

Hong Kong shows its claws over Tiger Asia

Two US-based hedge fund managers have been ordered to pay HK$45m (US$5.8m) to compensate investors, having admitted to insider trading in Hong Kong after a fight to block the regulator from taking action against them. Tiger Asia and two of its senior managers, Bill Sung Kook Hwang and Raymond Park, lost a string of appeals in the past two years…

Turkish lira tumbles amid tensions

©AFP The Turkish lira hit an all-time low against the dollar on Friday amid the country’s worst corruption scandal for years, in a tumble that highlights concerns about political risk and the economy’s dependence on hot money. The currency went below TL2.095 to the dollar on Friday, the latest slide in a week marked by the US Federal Reserve’s decision…

Upgrades send Carnival to three-month high

Cruise operator Carnival rose up the FTSE 100 for a second day after receiving a number of upgrades in response to its recent trading update. Carnival, which like most leisure stocks has had a stuttering recovery since the financial crisis, rose to a three-month high after issuing its outlook for 2014, which beat expectations and drew many favourable comments. The…