Monthly Archives: December 2014

Russian equities worst performers of 2014

©AFP The combination of the oil price collapse and the continuing conflict in Ukraine proved particularly toxic for investors in Russian equities. Russia was by some way the worst-performing country in 2014 among MSCI indices, showing a total return of minus 42.3 per cent, calculated on a dollar basis, which includes dividends and share price movements. By contrast Egypt was…

Stress testing should not just be for the banks

©Bloomberg The oil price has crashed and there is mounting turbulence in Russia. Critics of financial regulators cite both as proof that the world is behind the curve again when it comes to monitoring financial stability. December’s UK stress test of the country’s top banks was tough on some standard economic metrics: house prices, interest rates, gross domestic product, unemployment….

Tech start-ups on Aim fail to hit heights

It has been a turbulent year for investors in small public UK technology companies. While the global sector has enjoyed rising valuations and multibillion-dollar acquisitions, tech stocks listed on London’s junior Aim market have suffered their worst year since the financial crisis, with the value of a weighted basket of shares falling by more than 25 per cent since January….

BP probes in-house forex traders

©PA BP is investigating whether in-house financial traders at the oil and gas group were involved in a foreign exchange manipulation scandal that has led regulators to levy $4.3bn in fines on six banks. The UK group launched an internal review of its currency trading operations in London last year when regulators first started probing banks over their foreign exchange…

Risk of Greek fallout hits European stocks

Tuesday 21:00 GMT. Global equities lost momentum on Tuesday, with European equities dropping as the snap election called in Greece drew in further casualties. Shares on Wall Street also eased but benchmark indices still remain near record highs. The S&P 500 closed 0.5 per cent lower at 2,080.35 points, while the Dow Jones Industrial Average ended the session 0.3 per…

Predictions for 2015

©Barry Falls As 2014 comes to a close, the Financial Times once again engages in a harmless bit of soothsaying. As ever, we invite some of the FT’s experts and commentators to dim the lights, dust down their crystal balls and predict what the next 12 months will bring on topics ranging from the British general election to the outlook…

Rush for exposure to US fuels ETF inflows

©Bloomberg A scramble for exposure to the US’s economic recovery dominated flows into fast-growing exchange traded funds in 2014, and contrasted with fading investor enthusiasm for Europe. International flows into all ETFs with exposure to the US this year were equivalent to almost 50 per cent of starting assets under management — the strongest since 2008, according to an analysis…

Japan stocks count on Abe’s third arrow

Wahei Takeda likes what he sees of “Abenomics”. The 81-year-old biscuits baron, long known as Japan’s Warren Buffett, expects the Nikkei 225 average to break the 21,000 level in 2015 — up about a fifth from today’s levels — propelled by a series of measures designed to enhance the long-term appeal of stocks as investments. The self-styled Sage of Nagoya…

HK watchdog acts against shortseller

©Bloomberg Citron Research has become the first shortseller to face action from Hong Kong’s watchdog, which alleges the California-based group knowingly made “false and misleading” claims about Evergrande, the Chinese developer. Hong Kong’s Securities and Futures Commission on Monday started market misconduct tribunal proceedings against Andrew Left, the head of Citron, for claims made in June 2012 that Evergrande was…

Retail investors snub ‘Abenomics’ savings

©Reuters Take-up of Nisas, introduced by the government of Japanese PM Shinzo Abe, has been underwhelming The aggressive monetary easing of “Abenomics” may have charmed foreign investors but has so far failed to convince Japanese retail investors to have faith in their home market. Nippon Individual Savings Accounts, or Nisas, were introduced last year to tempt Japanese households to invest…