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  • US president Barack Obama is reportedly going to propose taxing the carried interest earned by hedge fund managers and private equity managers as ordinary income, rather than as capital gains. In addition to capping Wall Street executive salaries, industry participants fear that there will be an exodus of financial expertise to more accommodating jurisdictions.
  • The $3 billion London hedge fund Endeavour is liquidating its flagship fund after losing more than 40% last year. The fund was running a fixed-income arbitrage strategy that lost money on Japanese government bond futures. A bail-out plan with Barclays Global Investors failed to be completed. The fund has also returned money from its second fund, Pembroke, to investors. Pembroke will continue to manage proprietary money.
  • The RTS Stock Exchange in Moscow has seen good demand for its new euro/dollar futures contract, launched on February 5. Turnover in the contracts, which have a notional value of just €1,000, reached 142,565, or $1.8 billion, on February 17, making it probably the most successful FX contract launch for some time. Local banks have been providing liquidity; demand is said to be flowing in from retail participants.
  • Country risk 2009: No more safe havens?
  • The relatively conservative approaches of the financial system and banks’ customers seem to be helping the nation deal relatively well with the financial crisis and recession. But there are still risks ahead. Laurence Neville reports.
  • Some senior bankers are still moving to Dubai; but at least one has already moved away again. Sending rainmakers to the UAE brings as yet unquantifiable rewards. Should global banks keep expanding their Gulf presence? Dominic O’Neill reports from Dubai.
  • Former Swiss finance minister to replace Kurer at helm of UBS.
  • Multibank platform FXall, which has recently released a new service called Cross Currency Netting, says that changing conditions in the foreign exchange market have shown the importance of being able to deliver flexible workflow tools to the buy side.
  • Debt drought might force Gatwick sale rethink.
  • While many investors in bank stocks and bonds might have been hoping for a more comprehensive bailout plan from US Treasury secretary Timothy Geithner, others will be pleased with his feeble announcement. Their argument is that the sooner insolvent banks collapse, the sooner the system will be restored to health and confidence return. The notion of the government funding a bad bank to buy troubled assets at above market value – God forbid at face value – is the ultimate moral hazard.
  • The Turkish economy has made great strides forward since the financial meltdown of 2001. But has it changed enough to survive the global economic slump? Guy Norton reports from Istanbul.
  • As in the bond market, emerging markets corporates will come under stress in the loans market. Refinancing needs are estimated to be $156 billion, with the biggest redemptions due in Russia, UAE, Mexico, Turkey and Korea, according to JPMorgan. And it is not just weaker credits that will be under pressure.