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Is it really likely that DK will now be able to persuade better-quality individuals to join the firm? It might be struggling to retain the ones that are left.

FX debate: Alpha quest drives FX market growth (Part one, January)

Better guide to risk than VaR. According to some hedge fund industry participants, stress testing is becoming a more widely used measure of risk among prime brokers and managers.

Cash management debate: Doing more with less – the treasurer’s lot

Asia’s nascent market in structured growth capital is hard to define and even harder to resist. Fat margins and tied clients are bringing more entrants and might engender greater risks.

“The share price hasn’t moved for a decade. Working for Citigroup has put an extra five years onto my working life. You make a pact with the devil when you work for an investment bank, I know, but you at least expect him to keep his side of the bargain!” One disgruntled Citigroup banker bemoans having his retirement plans indefinitely delayed

Transbank to raise statutory capital by USD 32mn. The Transbank decided to raise the statutory capital by UAH 160mn (USD 32mn) to UAH 200mn. The intended increase will be achieved via additional share issue for existing shareholders and foreign investors. Transbank presently negotiates with French, Israeli and South Korean banks to sell its shares to them. As of Oct 1, 2006, the net assets of the bank amounted to UAH 629.5mn, its credit portfolio – to UAH 469.5mn and equity - to UAH 70.68mn. The bank ended the Jan-Sep 2006 with net profit of UAH 4.352mn. As of Oct 7, 2005 Volodymyr Kosterin had 23.66% stake in the bank, Eurowest ltd - 9.99% stake, Natalia Zhylina - 9.4% stake, Vartons Management Ltd - 8.75% stake and Hrindel Ukraina - 8.59% stake in the bank.

Russia, Moldova sign WTO accession protocol. Russian EconMin German Gref and Moldovan EconMin Igor Dodon signed WTO accession protocol. In order to sign this document Russia had to promise to reverse import embargo on Moldovan wine, which is the main export good of the country. On Nov 19, Russia signed a WTO agreement with the US, which opened way for further multilateral negotiations on WTO accession. Russia will be able to join WTO in 2007, German Gref said last month. Russia still needs to sign bilateral protocols with Guatemala , Costa-Rica and Salvador . However, the agreements with these countries already were reached. The most important thing for Russia is to get an agreement of Georgia , as it is the only country, which still does not support Russia ’s entry to WTO.

Belarus threatens to stop gas transit if Gazprom cuts gas supplies to this country in 2007. Belarus threatened to stop transit of Russian natural gas through its territory if Belarus and Gazprom fail to sign the contract for gas supplies in 2007. It was stated by Belarusian deputy PM Vladimir Semashko. Gazprom wants to double the current gas price for Belarus in 2007. Otherwise the company may cut supplies on Jan 1. The current contract terminates on Jan 1, 2007 . Sergei Kupriyanov, a spokesman for Gazprom, said that the company would supply gas to Belarus only on the basis of a new contract. About 80% of the Russian gas supplies go to Europe through Ukraine and about 20% - through Belarus . Belarus proposed the gas price to be set at USD 75 per 1,000m 3. But, as Kupriyanov said, in this case Gazprom will receive USD 1.5bn for 20bn m 3 of gas exported to Belarus . In addition it will have to pay USD 2.5bn for a 25% stake in Beltransgaz and for the gas transit to Europe through this country. Intellinews comment : However, Gazprom is not likely to cut gas supplies to Belarus on Jan 1 because this will hamper its reputation and demonstrate low reliability of the company. Most likely it simply uses pressure to get the best possible deal with the country.

Bank of Moscow to raise USD 270mn from additional share issue. The Bank of Moscow plans to raise up to RUR 7.114bn (USD 270mn) from the placement of its additional share issue, the bank said. 6.9mn shares will be placed via public subscription at the price of RUR 1031 per share. Bank of Moscow, founded in 1995, has 83,000 corporate and 6mn individual clients. The bank has branches in Russia , Baltic countries, Belarus , Ukraine , and a representative office in Germany . In Aug 2006, Bank of Moscow obtained RUR 2.9bn in additional share issue, thus increasing its authorized capital to RUR 12.31bn from RUB 11.75bn. The bank's major shareholder is the Moscow government with 46.465% stake.

Foreign reserves inch up 0.5% w/w to USD 58.8bn. The Central Bank announced that foreign reserves increased 0.5% w/w or USD 296mn to USD 58.8bn as of Dec 8. The bank’s reserves jumped a by 16.3%, or USD 8.3bn between end-2005 and Dec 8. In mid-April, the bank’s reserves had reached a record level USD 60.4bn before they declined to USD 56.7bn as of July 30, following strong volatility in May-June.

Reuters poll: MC to keep rates on hold on Dec 18. The Monetary Council (MC) will keep the base rate on hold at the next rate-setting meeting on Dec 18, according to the unanimous forecast of 17 analysts polled by Reuters . The survey was carried between Dec 11 and Dec 13 and the outturn should not be surprising against the background of 9.5-month high of the HUF against the EUR as well as November’s inflation figure being in line with the expectations. The consensus forecast also suggests that the central bank will not alter rates at the January rate sitting also. Narrow majority of the respondents expect that the MC would embark on monetary easing cycle as of H2/2007, while some analysts deem that the cuts could be launched still in the first months of the next year, given that capital inflows remain strong. The median forecast put annual average inflation at 6.6% in 2007, including a peak at some 8% in the first months, at 3.8% in 2008 and 3.1% in 2009.