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18 December 2012
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  Top Stories 
 
  • BoJ reportedly is pressured to adopt 2% inflation target
    The Bank of Japan is set to loosen monetary policy this week and discuss adopting a 2% inflation target by January, in response to pressure from Prime Minister Shinzo Abe, sources said. Abe called on the bank to double its price goal and set a 2% inflation target to fight the risk of deflation. Reuters (18 Dec.) LinkedInFacebookTwitterEmail this Story
  • Greece obtains €34.3B in aid and recapitalizes banks
    The Greek government is working on the final phase of bank recapitalization and catching up on debt payments after receiving €34.3 billion from the EU, the European Central Bank and the International Monetary Fund. Prime Minister Antonis Samaras met with 13 multinational companies and encouraged them to increase investment in Greece. Kathimerini (Greece) (17 Dec.), Reuters (17 Dec.) LinkedInFacebookTwitterEmail this Story
  • Complaints prompt BBA to delay Libor overhaul
    The British Bankers' Association announced that a revamped system to calculate the London Interbank Offered Rate will be postponed until the end of May, from the end of January. The BBA cited complaints from Libor users that "the proposed timescales for the changes were too fast." Risk.net (subscription required) (17 Dec.) LinkedInFacebookTwitterEmail this Story
  • GE reportedly nears $3.95B buyout of Italy's Avio
    General Electric expects to finalize its $3.95 billion acquisition of Avio, an Italian aerospace supplier, no later than Wednesday, sources familiar with the deal said. Avio makes aircraft-engine parts for GE, Rolls Royce Holdings and the Eurofighter Typhoon. Reuters (18 Dec.) LinkedInFacebookTwitterEmail this Story
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  Reader Survey 
  • Do annual market forecasts commonly circulated by Wall Street's sell side have value to professional investors?
Yes, they help in positioning portfolios for the year ahead
No, they amount to nothing more than marketing gimmicks
They are interesting to read but of limited value

  Market Activity 
 
  • Most Asian-Pacific markets rise amid U.S. debt-deal optimism
    Most Asian-Pacific markets rose Tuesday as investors responded to building optimism that the U.S. will avert the "fiscal cliff." Japan's Nikkei 225 rose 1% to 9,923.01, its best closing since early April. South Korea's Kospi and Australia's S&P/ASX 200 each climbed 0.5%. Taiwan's Taiex moved up 0.2%. China's Shanghai Composite edged up 0.1%. Hong Kong's Hang Seng Index slid 0.1%. India's Sensex was up 0.6% at midafternoon. MarketWatch (18 Dec.), The Economic Times (India) (24 Dec.) LinkedInFacebookTwitterEmail this Story
  • Corporate-bond sales break 2009 record
    Thanks to some of the lowest borrowing costs ever, sales of corporate bonds in the U.S., Europe and Asia hit $3.9 trillion this year, breaking a 2009 record of $3.89 trillion. Global issuance reached $3.29 trillion in 2011 and $3.23 trillion in 2010, according to data compiled by Bloomberg. Bloomberg (17 Dec.) LinkedInFacebookTwitterEmail this Story
  • AIA's Hong Kong stock sale raises $6.45B for AIG
    American International Group raised $6.45 billion from the Hong Kong offering of its remaining stake in insurance company AIA Group. The 1.65 billion shares priced at the top half of the offered range. Bloomberg (18 Dec.) LinkedInFacebookTwitterEmail this Story
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  Economics 
  • Fed predicts more jobs but no drop in unemployment rate
    A paper by the Federal Reserve Bank of San Francisco warns that the U.S. unemployment rate might stop falling even though the economy is improving and more people are finding jobs. Jobless statistics are likely to remain flat as the improving economy lures people who stopped looking for work back to the job hunt, at which point they are again counted as unemployed, the paper says. The Washington Post/Wonkblog (17 Dec.) LinkedInFacebookTwitterEmail this Story
  • Pros and cons of online financial advisers
    Investors who prefer to get financial advice online can choose from increasingly more firms, with several having $50 million or more in assets under management. Online advisers offer lower fees, but in-person meetings usually aren't an option, according to researcher PriceMetrix. Reuters (17 Dec.) LinkedInFacebookTwitterEmail this Story
  • IMF might censure Argentina for misleading economic data
    The International Monetary Fund Executive Board is expected to decide in January whether to publicly sanction Argentina for failing to share accurate data on economic growth and inflation. The IMF and private economists have disputed Argentina's information since 2007, but President Cristina Fernandez de Kirchner has denied impropriety. Bloomberg (17 Dec.) LinkedInFacebookTwitterEmail this Story
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  Geopolitical/Regulatory 
  • Fed governor promotes stiffer rules for foreign banks
    Proposed rules to ensure foreign banks in the U.S. follow regulations used by domestic banks should help, Federal Reserve Governor Jeremy Stein says. "These rules should reduce the pressure on foreign banks that rely heavily on short-term dollar funding to either sell illiquid dollar assets or cut back on dollar lending in times of financial stress," according to Stein's prepared remarks for the European Central Bank's global research forum. The Wall Street Journal/Real Time Economics blog (17 Dec.) LinkedInFacebookTwitterEmail this Story
  • U.S. panel will focus on high-frequency trading
    The U.S. Senate banking committee has scheduled a hearing Tuesday about high-frequency trading. Executives from NYSE Euronext, Nasdaq OMX Group and other firms are set to testify. Eric Noll, executive vice president at Nasdaq, is expected to defend the trading practice and exchanges' role. According to his prepared testimony, "academic evidence" on HFT practices "supports the fact that they generally add value to the market." Meanwhile, market participants and observers continue to express concerns about how computerized trading affects markets. Bloomberg (18 Dec.), The Wall Street Journal (17 Dec.) LinkedInFacebookTwitterEmail this Story
  • U.K. regulator ramps up mis-selling action
    Applying a regulatory mandate for the first time, the U.K. Financial Services Authority ordered financial advisers to contact thousands of clients who bought into two Guernsey funds to ask whether they'd like a review to determine whether they were victims of mis-selling. The move is seen as part of a tougher attitude by the FSA as the U.K. addresses years of mis-selling involving products such as home loans, pensions and loan insurance. Reuters (17 Dec.) LinkedInFacebookTwitterEmail this Story

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