MARKETS | Government Debt July 6, 2010 GEORGE TCHETVERTAKOV HEAD OF MARKET RESEARCH, ALPARI OVER the past three months, confidence in a global economic recovery has waned and volatility has risen spectacularly in May. And as we enter the second half of 2010, most asset classes are severely underperforming consensus estimates made at the beginning of the year. Libor (the London inter-bank [...]
FOREX ANALYST PICKS July 6, 2010 CURRENCY STRATEGIST DAVID RODRIGUEZ My pick: Short Aussie dollar-US dollar below $0.8900 Expertise: Algorithmic trading Average time frame of trades: 2-10 weeks I am a market bear, and believe that the S&P 500 still has further to fall. In line with this view, I remain bearish commodity currencies, especially the Australian dollar, because they tend [...]
THE TIPSTER July 6, 2010 AFTER hitting twenty month lows last week at £0.8067 euro-sterling has bounced nearly 300 pips to £0.8335. It broke the 20-day simple moving average on Monday along with a four-month resistance line yesterday at £0.8280. Look for support around this level, which could thwart further euro gains. Resistance should come in around £0.8385, the June [...]
Valuations are a welcome boost for markets July 6, 2010 PICKING the bottom of the market can be a fool’s game, especially in the capricious times we live in. But after a 14 per cent fall in the S&P 500 in recent weeks, valuations are at deeply attractive levels. But is this just low hanging fruit that is too good to be true? No, according [...]
Explore new frontiers July 6, 2010 WITH the attention that has been lavished on China, it has been all too easy to neglect the region’s little dragons such as Vietnam. Investors fled these frontier markets during the financial crisis. In early 2008, Vietnam suffered from a combination of economic overheating and surging international commodity prices. Standard Chartered analysts reckon that the [...]
WHY DEFENCE IS BETTER THAN OFFENCE July 6, 2010 DICK TURPIN MANAGING DIRECTOR, ARTEMIS COMMENTING on a complaint last week from a Mr Arthur Purdey about a large gas bill, a spokesman for the gas company said: “We agree it was rather high for this time of year. It is possible Mr Purdey has been charged for the gas used up during the explosion [...]
FUND MANAGEMENT NEWS July 6, 2010 SANLAM LAUNCHES AFRICAN FUND Sanlam Investment Management have launched a Ucits African Frontier Markets Fund. The minimum investment stands at £1,000, with a performance fee of 20 per cent and management fee of 1.75 per cent. The fund, managed by Eric Kibe, exploits African equities’ low correlation with mainstream global equity markets by investing in [...]
Hedge fund law will damage City July 6, 2010 RICHARD MARTIN & SEAN DONOVAN-SMITH SPEECHLY BIRCHAM The EU parliament is today expected to vote through amendments to the Capital Requirements Directive concerning bankers’ remuneration. Under the new rules, which will take effect in January 2011, only 30% of any bonus (20% for “larger bonuses”) may be payable immediately and in cash with the remainder [...]
An LLP can bring employment law troubles July 6, 2010 JOANNA BLACKBURN MISCHON DE REYA LIMITED liability partnerships are traditionally associated with law firms, but the LLP structure is increasingly the structure of choice for private equity firms, hedge funds, or other partnerships. An LLP can seem the best way for the business to structure itself. There’s better tax status, limitations of liability, and the [...]
Clouds hover over the second half outlook July 5, 2010 THE last three months have seen a step-change in global markets. After a boom fuelled by fiscal stimuli, financial markets have fallen as governments plan to scale back their support, and the period has been punctuated by a flight to quality assets. So, what should contract for difference (CFD) traders concentrate on as we enter [...]