GFMA: News on the global financial markets
07/11/2011 GFMAThe bankruptcy of MF Global Holdings raises more concerns about clearing arrangements should the proposed merger of NYSE Euronext and Deutsche Boerse be approved. Financial Times(tiered subscription model)(06 Nov.)
- US investors snap up European corporate
bonds
Many portfolio managers have fled European investments because of the sovereign-debt crisis, but some US investors are picking up bargains through corporate bonds. Some are purchasing high-yield European corporate bonds, while others are capitalising on diverging prices of European and US bonds of global companies. Some risk takers see an opportunity in the debt of Greece's banks. The Wall Street Journal (tiered subscription model)(07 Nov.) - MF Global's downfall is another blow to financial
sector
Jon Corzine thought he could turn MF Global Holdings into a rival of Goldman Sachs Group. Instead, his risk-taking instincts led to MF Global's collapse. Financial Times (tiered subscription model)(04 Nov.) - Other News
- UBS reportedly plans to make Ermotti
permanent CEO
Bloomberg (05 Nov.) - RBS expects road to recovery to be "longer
and bumpier"
The Wall Street Journal (tiered subscription model) (04 Nov.)
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FSB names 29 global banks as systemically
important
The Financial Stability Board named 29 banks as global systemically
important financial institutions. The banks will face higher
capital requirements and tougher surveillance than their smaller
rivals. "We welcome the G-20's focus on reforming the financial
sector, which has already undertaken significant regulatory change,
covering stronger capital requirements for banks to the
restructuring of the European regulatory regime and remuneration,"
AFME said in response to the FSB's list. Reuters(04 Nov.), The Wall Street Journal (tiered subscription
model)(04 Nov.), Forbes(04 Nov.), Bloomberg(04 Nov.)
Some banks might benefit from being deemed "too big to fail": The Financial Stability Board identified 29 global banks as systemically important financial institutions, and some of them see a bright side to the designation. Rodney Alfven, head of investor relations at Nordea, said the status should make it easier for the bank to raise capital. The Wall Street Journal (tiered subscription model)/Dow Jones Newswires(04 Nov.)
Economists expect BoE to hold bond-buying
programme
According to a survey, economists expect the Bank of England to
maintain its bond-buying programme at £275 billion at its upcoming
meeting, after expanding it by £75 billion in October. The central
bank is also expected to to maintain its key interest rate at 0.5%.
Bloomberg(04 Nov.)
Other News
Financial-transaction tax fails to gain
G-20 support
Global Financial Strategy (04 Nov.)
Barnier rejects claims that Brussels is
attacking City
Financial Times (tiered subscription model) (04 Nov.)
ECB might end purchases of Italian bonds if
reforms aren't made
Reuters (06 Nov.)
Japanese regulators grow impatient with
Citigroup
The Wall Street Journal (tiered subscription model) (07 Nov.)
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- China will inject funds into money market to
improve liquidity
China plans to improve liquidity in its money market by injecting more than 1 trillion yuan through subsidies from the Ministry of Finance, according to a report. Liquidity has suffered because of the government's tighter monetary policy. Reuters(07 Nov.)