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31 January 2013
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  Top Stories 
 
2013 — The year of the leverage ratio
The leverage ratio is set to become a key metric for banks. From Q1'13, banks in the U.S. and Europe will disclose more consistent and comparable figures for assets and leverage. SNL Financial monitors developments affecting hundreds of European financial institutions; providing standardised data, in-depth analysis and exclusive news. Find out more.
  Market Activity 
 
  • Many Asian-Pacific markets fall after a month of gains
    Most Asian-Pacific markets fell Thursday, bringing a month of gains to an end. China's markets will be closed for seven days during its New Year celebration, encouraging some traders to scale back exposure to equities. Hong Kong's Hang Seng Index and Australia's S&P/ASX 200 each fell 0.4%. China's Shanghai Composite edged up 0.1%. Japan's Nikkei 225 and Taiwan's Taiex each closed up 0.2%. South Korea's Kospi and Singapore's Straits Times each declined 0.1%. India's Sensex was down 0.6% at midafternoon. MarketWatch (31 Jan.), The Economic Times (India) (06 Feb.) LinkedInFacebookTwitterEmail this Story
  • Euro hits 14-month high against U.S. dollar
    The euro held its value on foreign exchange markets after rising to a 14-month high against the U.S. dollar and a 2½-year high against Japan's yen. The eurozone currency touched $1.3588 on Wednesday, its highest value since November 2011. Reuters (31 Jan.) LinkedInFacebookTwitterEmail this Story
  • Demand sends Japan's 5-year bond yield to record low
    After an auction of two-year debt revealed strong demand for Japanese debt across all maturities, the yield on the five-year bond fell to 0.14%, equal to an all-time low set Jan. 22. The government sold $27 billion of two-year notes, with bids for 10.13 times the amount of securities offered. Bloomberg (31 Jan.) LinkedInFacebookTwitterEmail this Story
  • Foreign investors bought more gilts than they sold in December
    Overseas investors are indicating that they aren't overly concerned about Britain's economic challenges or its government as they continue to purchase U.K. government bonds. "I think what surprises people is that the weakness of the currency doesn't seem to be filtering through into a massive loss of confidence in gilts," said Malika Gulabani of F&C Investments. The Wall Street Journal (30 Jan.) LinkedInFacebookTwitterEmail this Story
  • Analysis: Investor optimism overlooks problems
    There's no sense in denying that the global economy is recovering, but the wave of optimism sweeping through financial markets ignores serious and fundamental problems with the economies of Europe, the U.S. and Japan, according to The Economist. "The latest bout of optimism in the markets is welcome, but governments should not let it infect them with a dangerous complacency," the magazine notes. "Politicians may have avoided catastrophes, but their policies are still flawed," it adds. The Economist (tiered subscription model) (26 Jan.), Knowledge@Wharton (30 Jan.) LinkedInFacebookTwitterEmail this Story
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  Economics 
  • ECB survey finds tightening credit conditions
    Eurozone banks demanded higher standards from borrowers in the fourth quarter, according to a survey by the European Central Bank. The ECB expects credit conditions to tighten further this quarter as banks deal with decreased demand for loans. Bloomberg (30 Jan.) LinkedInFacebookTwitterEmail this Story
  • Retirement-plan distribution presents opportunity for advisers
    Financial advisers have an enormous opportunity in helping retiring Americans determine distribution from 401(k) accounts and other retirement plans, according to Cerulli Associates. Every year, more than $1 trillion in retirement assets are available for distribution. Rollover into private accounts totaled $307 billion in 2011. Reuters (30 Jan.) LinkedInFacebookTwitterEmail this Story
  • China will remain major manufacturer despite change, expert says
    Labor and other business costs are rising significantly in China, but that doesn't mean the nation will lose its position as a dominant manufacturer, says Shaun Rein, founder and managing director of China Market Research Group and author of "The End of Cheap China." China aims to boost worker productivity as wages increase, he says. "What you will see more of is factory relocation within China to take advantage of lower land and wage costs," Rein said. OpenMarkets.com (22 Jan.) LinkedInFacebookTwitterEmail this Story
CFA Institute: Global Investment Risk Symposium
7-8 March 2013
Westin Washington, D.C. City Center
Washington, District of Columbia, United States
Hosted with CFA Society Washington, D.C.

Register online or use a printable registration form (PDF)
Register by 7 February 2013 and receive a US$200 discount.
  Geopolitical/Regulatory 
  • Europe's transaction tax prompts concerns
    As the full scope of Europe's proposed tax on financial transactions becomes public, experts are voicing concern that its wide reach will stunt growth. "If you tax the nominal value of derivatives, flow will migrate elsewhere as these contracts can be traded globally," said Diego Valiante of the European Capital Markets Institute. That could lower volume and make European markets less competitive, experts say. The Trade News (U.K.) (30 Jan.) LinkedInFacebookTwitterEmail this Story
  • ESRB cuts macroprudential tools down to 15
    The European Systemic Risk Board has narrowed a list of macroprudential tools to 15. At the end of 2011, the ESRB had 42 potential responses. All EU members are constrained to those 15 tools, although non-eurozone nations might have more leeway because there is less direct oversight of their actions. One tool is the countercyclical capital buffer, which is part of Basel III rules and lets regulators increase capital requirements. Risk.net (subscription required) (30 Jan.) LinkedInFacebookTwitterEmail this Story
  • CFTC scrutinizes rules amid futurization of swaps
    Exchanges decide what size energy-futures contracts can trade privately and rules on reporting such trades. The Commodity Futures Trading Commission, however, is looking into the matter and considering taking on that role. "The transition to futures in the energy market has been facilitated by the exchanges establishing extremely low threshold sizes for block trades in the futures contracts," CFTC Commissioner Scott O'Malia said. "This is a significant issue that needs to be sufficiently thought through by both the commission and market participants." Bloomberg (31 Jan.), The Wall Street Journal/Dow Jones Newswires (30 Jan.) LinkedInFacebookTwitterEmail this Story
  • EU parliamentary panel might reject OTC derivatives rules
    The European Parliament's Economic and Monetary Affairs Committee is leaning toward rejecting draft rules for over-the-counter derivatives, according to Parliament's website. The panel is concerned that the rules would force nonfinancial companies to pass trades through central counterparties, even though the value of such transactions is comparatively insignificant. Bloomberg Businessweek (30 Jan.) LinkedInFacebookTwitterEmail this Story
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  Financial Products 
  • ETC and Yorkville plan ETF focused on infrastructure MLPs
    Yorkville ETF Advisors and Exchange Traded Concepts filed with the Securities and Exchange Commission to launch an exchange-traded fund investing in master limited partnerships involved primarily in infrastructure used in the gathering, storage and transportation of oil and natural gas. The Yorkville High Income Infrastructure MLP ETF would be linked to a Solactive index of energy-infrastructure MLPs. IndexUniverse.com (30 Jan.) LinkedInFacebookTwitterEmail this Story
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