October 2010
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LATEST ARTICLES
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Moves to curb supposed speculation on futures exchanges are pointless populism, as commodity price spikes reflect physical market supply/demand factors.
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EU tracks US derivatives regulation with a time lag; Barnier sets regulatory sight on commodities markets
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Renewed quantitative easing is not a sound answer to the threat of double-dip recession or deflation. A credit bubble cannot be cured by pumping in more credit.
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Cross-border regional ties growing; Asian investment interest emerging
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Chairman calls rules misconceived; Wants help against foreign competition
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Gulf investment banking has hopes of staging a delayed recovery.
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As the high-yield debt markets converge further with leveraged loans, the model of a modern head of leveraged finance at a big house is a banker with a focus on lending, such as Andy O’Brien at JPMorgan or David Flannery at Bank of America Merrill Lynch. An Irish surname isn’t obligatory, but a reputation for hard work and patient application to client needs is, and flashy behaviour is not encouraged.
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Brazilian government biggest investor in deal
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Energy and commodities focus persists; Growing frustration on Latin side
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Listing to follow merger of Dangote subsidiaries; Dangote Group to own 95.9% of merged entity
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"That deal was an ambulance-chasing, low fee, beauty parade ordeal, which we were very happy to do for the league table credit"
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Rating agency clarification boosts market; Some investors say hybrid debt is flawed
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To commemorate its London centenary, RBC sent umbrellas to clients. Euromoney wondered whether any banks had plans to celebrate anniversaries for their businesses in Canada, and if so what would they send round.
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The shocking disparity in distressed corporate valuations might serve to embolden junior claims on these companies.
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Currency-market intervention cannot boost Japan’s exports in the short term. Nor does it tackle the country’s deeper economic malaise.
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At the end of October, the winner of the prestigious Financial Times/Goldman Sachs business book of the year award will be announced at a swanky dinner in New York.
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Investors more active in hedging market tail risk; Exchange traded products may be skewing volatility curve
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Wall Street: Money Never Sleeps, the sequel to Wall Street, had its world premiere last month at the Ziegfeld Theatre in Manhattan. It wasn’t exactly Wall Street meets Hollywood but a lucky few from the "Street" were able to walk the red carpet, thanks to small walk-on parts that added some authenticity. Noted omissions from the film were the New York Stock Exchange, and the big Wall Street firms, which had featured in the original. The film focuses on the world of credit default swaps, and the now well-publicized world of high-frequency trading, where many say the "new greed is going’’. There weren’t a lot of bankers there. Warren Buffett was, Nouriel Roubini was, so too Tyra Banks, with the cast and the director, Oliver Stone. Sunil Hirani, the former chief executive of Creditex, a credit derivatives broker, with a small walk-on cameo, said Stone knew enough about credit derivatives to be dangerous. Euromoney assumes that doesn’t mean in an AIG sort of way. The original Wall Street was the inspiration that launched the career of many a banker and stockbroker. It will be hard to match that with this one. As one banker who was inspired by watching the film 20 years ago told Euromoney after watching the sequel: "I drifted off somewhere in the middle and found myself thinking about the original." Aaah... Sentimentality.
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Deal resumes Russian equity issuance; Proceeds earmarked for capex programme
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Dismal trading volumes in the third quarter were punctuated by some chunky investment-grade bond issues and stock offerings that were a disappointment to investment banks in terms of fee generation.
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Banks have shown themselves incapable of safeguarding the system in which they operate. Intrusive, interventionist, expert, powerful, independent regulatory authorities are the answer.
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Omani telco could raise $600 million; UAE mobile phone retailer to follow with IPO
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Exchange offers relaxed requirements; Risk-averse banks creating bottleneck
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Canada’s PotashCorp up for grabs; China’s Sinochem might intervene
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Biggest province to issue bond; Investors attracted by juicy yields
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It’s fast shaping up to be one of THE stories of the decade, a collision of the much-maligned worlds of football and finance. The battle for ownership of Liverpool Football Club has drawn in some of the biggest names in global finance. Controversial US club owners Tom Hicks and George Gillett have been desperately trying to refinance £325 million ($512 million) of debt, lent by RBS to the holding company through which they own the 18-times English championship-winning club.
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Lending still shrinking as NPLs weigh on sentiment; Regulatory changes may help ease the burden
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New agency to launch in November; Investor demand is key
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HSBC's succession saga; Deutsche's Q3 results; Wuffli's ethics and globalization; M&A Mee
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The Saga of Iceland’s involvement in the financial crisis has elements of tragedy and farce. But it would be unwise to underestimate this nation of warriors, poets and volcanoes.