In the September issue of Euromoney, in an article about Turkey entitled It’s about the journey, not the destination, we wrongly attributed a quote to Ceren Akdag of Yapi Kredi. We would like to point out that these comments were not made by Ms Akdag nor anyone else at Yapi Kredi, and apologise for the error.

News that ICE is to relaunch its FX contracts gets a cool reception.

The people of Nigeria’s oil-rich Niger delta have yet to see many benefits of the natural resources under their feet. But Rotimi Amaechi, governor of Rivers State, the most populous delta state, is trumpeting the measures he is taking to improve his state’s infrastructural deficiencies. He tells Euromoney that in Nigeria’s federal system, the 36 states get 30% of government revenue, while the nine delta states get additional cash thanks to their importance in the country’s petrochemicals industry.

Costa Rican pension funds are in desperate need of more local investable securities, according to senior bankers in San José.

In late October, the upper house of parliament in Kazakhstan passed the latest amendments to a law designed to bolster confidence in the central Asian republic’s banking sector, which has been buffeted by the global credit crunch. This, in turn, has choked off the supply of cheap foreign currency debt that had fuelled the rapid expansion of Kazakh banks’ networks and lending portfolios in recent years.

Giulio Tremonti, Italy’s finance minister, caused something of a PR nightmare when he announced at a G8 meeting in Washington that he would consider banning hedge funds in Italy. He added that hedge funds were opaque and problematic. "Clearly he is crazy," says the head of a prime brokerage. The Alternative Investment Management Association and the Managed Funds Association were more diplomatic, responding jointly: "It is too easy to point a finger at an industry that is misunderstood; hedge funds are not an appropriate scapegoat during a crisis that was caused by failures in the regulated banking system. The hedge fund industry in Italy is a model of successful regulation, provides excellent risk-adjusted returns for investors and is an important source for job creation. It would be a serious mistake to consider eliminating these innovative private pools of capital that are, in fact, an essential source of capital to investors, to Italy and to the global economy."

Citadel has hired Rohit d’Souza, former global head of equities and alternative investments at Merrill Lynch, to expand the firm’s capital markets business. Citadel’s capital markets businesses execute and route more than 30% of average US listed equity options trading volume, and more than 8% of average Nasdaq and NYSE equities volume.

The collapse of Lehman Brothers has made investors wary of derivatives-based investments, but the US structured notes industry remains confident the market will grow.

Almost two-thirds of asset managers at buy-side firms in the US believe the continuing credit crisis is having a big impact on the trading of over-the-counter derivatives, according to research and consultancy firm Tabb Group. Meanwhile, 57% say the leading impact of the credit crisis is an increased focus on counterparty risk.

The Loan Market Association held its inaugural conference in London on October 16. It was packed meeting of market participants looked for reasons to be optimistic amidst the gloom. The programme featured panel discussions designed to shine some light in the darkness: how to revitalize the primary market; where the liquidity safe havens are; how to invest in distressed debt.

Rage against the dying of the light

Apparently, you can learn everything you ever wanted to know about investment banking in just four weeks.

Governments worldwide have moved to recapitalize banks. But the amounts injected will only be sufficient to avert a great depression; they are not enough to sustain lending and avert a global recession.

Japan’s largest banks are mulling the possibility of more capital raising after the Nikkei 225 stock index plunged to a 26-year low and left them looking vulnerable. Mitsubishi UFJ Financial Group, the country’s largest bank, announced on October 27 that it will issue up to ¥600 billion in common shares and up to ¥390 billion in preferred. Mizuho Financial Group and Sumitimo Mitsui Financial Group have been reported by local media to be considering similar measures.

Hedge funds are resorting to fee cuts in an attempt to discourage investors from redemptions. Ramius Capital, which has two funds totalling $11 billion in assets, reduced its incentive fee last month from 20% to 15% for current investors who agree to leave their money in its funds. Those investors would enjoy the lower fees until the end of 2010. Investors that add capital won’t pay an incentive fee on the additional funds until the beginning of 2010.

Bank of America is due to close its acquisition of Merrill Lynch in March 2009 but it is still not clear what it plans to do with Merrill’s Latin American business.

Venezuelan President Hugo Chavez said last month that oil prices, which have dropped by half in the last few months, will probably keep falling as the US falls into recession.

Mid-caps starved of operational and growth capital have new lenders.

A good deal has already been written about the relatively high cost, at least when compared with many other markets, of processing trades in foreign exchange.

The credit crisis could leave in its wake rich pickings for Middle East sovereign wealth funds. But what about private-equity-style government groups that rely more on leverage to fund their investments?

Excuse the cliché, but there is a silver lining in the cloud hanging over hedge funds. Many are destined to shut down. But that means more opportunity for those that survive, argues Neil Wilson.

Russia’s mega-rich are fast emerging as victims of the global credit crunch.

HSBC is buying 88.89% of Indonesia’s Bank Ekonomi for $607.5 million in cash, almost doubling the bank’s network in the country. The offer of Rp2,452 a share was a 29% premium on the bank’s stock price at the time of the offer; the shares rose rapidly on news of the deal.

Central bank governor reveals the extent of intervention required by the FX losses of a Mexican retailer.

Despite turmoil in the global stock markets, Cambodia is pressing on with its plans to open a stock exchange in late 2009. A note from Leopard Cambodia, a private fund that invests in the country, confirms that the currency of the exchange will be US dollars and that "the newly announced listing criteria include two years of profitability, $1 million paid-up capital or $2 million shareholders’ equity, and 100+ shareholders or 10% free float".

Until now, the most famous thing the small Australian wheatbelt community of Parkes could boast was a massive radio telescope on the outskirts of town known locally, with typical Australian reduction, as ‘The dish’. Nationally recognizable, the dish was the one thing that connected Parkes and, by extension, Australia, to the world and beyond. Moonshots have been traced and tracked from Parkes. Visiting US citizens – astronauts and their counterparts from Nasa – would periodically add foreign dash to Parkes’s determinedly middle-Australia ethos.

Commerzbank has confirmed market rumours that two senior figures from Dresdner Kleinwort will not now be joining it. Staff were told that Eddie Listorti, Dresdner’s head of FICC, and Stefan Gütter, its head of sales, would have senior roles at the new, enlarged bank when the takeover is completed in Q3 of 2009. The two were involved in pre-integration planning. Their decision will no doubt lead to a good deal of uncertainty among their existing staff at Dresdner.

China’s cabinet has approved a capital injection into ailing state lender Agricultural Bank of China, priming it for an initial public offering in late 2009 or 2010. In addition, $150 billion to $200 billion of failed loans will be sucked out of ABC, which was set up in 1979 to provide financing to China’s 800 million farmers, and stored in one or several of the country’s leading asset management companies. In a year full of record bail-outs, the capital injection will be provided by Central Huijin, a division of China Investment Corporation (CIC), Beijing’s sovereign wealth fund, ABC vice-president Pan Gongsheng told a press conference on October 22. Set up in 2005 to oversee the bail-out of other leading Chinese banks, Central Huijin will take a 50% stake in ABC, with the remainder to be held by the country’s finance ministry. The bank will also seek further capital – as well as much-needed management and risk-control expertise – from one or more foreign lenders, who will buy a strategic stake in the lender before its IPO.

Corporates can see the potential of shared service centres for reasons including compliance and costs, increased back office efficiency and labour arbitrage. However, there is no one-size-fits-all solution.

Show me the bonus!