Monthly Archives: September 2015

Trafigura founder dies after cancer fight

Claude Dauphin, one of the most prominent commodities traders of his generation and founder of the Switzerland-based Trafigura, has died at the age of 64. The French citizen died in Bogotá, Colombia, after a two-year battle with cancer, the company said. “We owe him an enormous debt of gratitude for a career full of achievement and entrepreneurial endeavour and for…

Russian owners bid to take Polyus private

©Bloomberg Polyus Gold’s largest shareholder has launched a widely anticipated offer to take the UK-listed miner private, but has drawn criticism from its independent board committee for the “disappointing” level of its bid. On Wednesday, Wandle — a vehicle of the foundation of Suleiman Kerimov, the Russian billionaire, and his son Said — offered to pay $2.97 per share for…

VW car loan securities at risk of losses

©Bloomberg Martin Winterkorn with a VW Passat Investors in securities sold by Volkswagen may incur losses if prices of second-hand cars fall sharply due to the emissions scandal, Fitch Ratings has warned. Yields on the company’s asset-backed securities, which move inversely to price, have increased by around 10-15 basis points over the past week, according to market participants. Asset-backed securities…

Asian currencies to remain under pressure

©Bloomberg Asian currencies can expect another period of downward pressure after ending the quarter at their lowest level since 2009, foreign exchange analysts predicted. After trending lower over the first half of the year, Asian currencies outside of Japan plunged much lower after the shock of the August 11 devaluation of the renminbi, which weighed heavily on China’s regional trading…

Former trader queries FCA investigation

©Bloomberg A multibillion pound deal to settle a probe into the manipulation of foreign-exchange benchmarks was based on incomplete inquiries and misinterpreted evidence, a London tribunal heard. The Financial Conduct Authority was accused by a former spot-forex trader at Barclays and UBS of not respecting the normal investigative process in the forex-rigging scandal. A lawyer for Chris Ashton — who…

EU plan to revive ABS faces challenge

In 2009, Rob Ford, a portfolio manager at TwentyFour Asset Management, had an unusually tough job on his hands: marketing asset-backed securities to clients. “On one occasion I turned over the front page of the presentation, and a potential investor said: ‘RMBS [residential mortgage-backed securities] — isn’t that the devil’s instrument?’” he says. Asset-backed securities provide a stream of income…

Dudley urges no rollback in bank rules

©Getty William Dudley, head of the New York Fed, says arguments for a September interest rate rise now seem weaker There should be no rollback in banking regulation as there is little evidence that onerous rules are holding backing trading in financial markets, according to the head of the New York Federal Reserve. The so-called “liquidity” of markets has emerged…

Traders price Glencore bonds like junk

©Bloomberg Traders have started to quote prices for Glencore debt in a manner normally associated with lower-quality paper, commonly known as junk bonds. The shift in pricing dynamics in the private over-the-counter markets this week came as shares in Glencore swung wildly as investors worry about the ability of the miner and trading house to manage its debt pile in…

Brazil central bank pledge against inflation

Brazil’s central bank is willing to do whatever is necessary to control inflation while the country grapples with the thorny issue of how to rebalance the nation’s public finances, a senior official has said. Tony Volpon (pictured), head of international affairs at the central bank, said that while tax increases to balance the budget could raise prices, monetary policy would…

Stocks slide amid global growth concerns

Tuesday 21:00 BST. Renewed uncertainty about the outlooks for global growth and US monetary policy made for a distinctly risk-averse day in the markets, with stocks, industrial metals and emerging market currencies coming under heavy pressure. The fallout from the Volkswagen US emission testing scandal provided another knock to sentiment, as carmaking stocks on both sides of the Atlantic suffered…