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13 December 2012
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  Top Stories 
 
  • Deal makes Rosneft biggest publicly traded oil company
    The Russian oil company Rosneft signed a deal to pay $28 billion for the stake in TNK-BP owned by a group of billionaires doing business as AAR. The transaction is set to close in the first half of 2013. The deal would make state-run Rosneft the world's largest publicly traded oil company, measured by production. Reuters (12 Dec.), Bloomberg (12 Dec.) LinkedInFacebookTwitterEmail this Story
Sector SPDRs carve the S&P 500 into nine sector exchange-traded funds (ETFs) that conveniently, efficiently, and affordably provide sector exposure while giving investors the unique ability to customize the S&P 500 to meet specific investment objectives.
See sectorspdrs.com for complete details.
  Reader Survey 
  • Of these global fixed-income markets, which is in bubble territory?
    Sovereign  26.84%
    All of the above  22.38%
    High-yield corporate  18.60%
    More than one  16.76%
    None of the above  9.11%
    Investment-grade corporate  6.30%
  • Poll analysis: We asked readers this week whether global fixed-income markets are in bubble territory and, if so, which ones are overvalued. Less than 10% of 1,032 respondents say no fixed-income market is in bubble territory. We can then extrapolate that a supermajority thinks at least one fixed-income market is overvalued. In a world where yields on sovereign debt are at all-time lows and where negative nominal debt yields are routinely being priced, it makes sense that 22% of respondents single out fixed-income markets as being the most in bubble territory. Overheated sovereign markets have clearly driven a global quest for yield. Many high-yield debt markets are hitting all-time highs in issuance, and demand for more high-yielding debt is hardly sated. This development has not escaped the watchful eyes of readers, with 18.5% indicating that they think high-yield markets are in bubble territory. Investors on the quest for yield along with safety also are plowing capital into investment-grade corporate securities, but only about 6.3% of respondents think these markets are overbought. About 1 in 6 respondents thinks more than one of the fixed-income markets is in bubble territory, and a whopping one-fifth think all of the markets listed are price rich. In an uncertain macro-environment world where global central banks seem willing to underwrite anxieties, the end of fixed-income bubble markets seems far off. -- Jason A. Voss, CFA, Content Director, CFA Institute LinkedInFacebookTwitterEmail this Story
  Market Activity 
 
  • Asian-Pacific markets are mixed, with Japan posting big gain
    Asian-Pacific markets were mixed Thursday after the Federal Reserve made a long-term commitment to stimulus linked to the U.S. unemployment rate. Japan's Nikkei 225 jumped 1.7%. South Korea's Kospi added 1.4%. Taiwan's Taiex gained 0.9%. Australia's S&P/ASX 200 edged slightl lower. Hong Kong's Hang Seng Index declined 0.3%. China's Shanghai Composite dropped 1%. India's Sensex was down 0.7% at midafternoon. MarketWatch (13 Dec.), The Economic Times (India) (19 Dec.) LinkedInFacebookTwitterEmail this Story
Join NYSSA in NYC on 10 January for this important event
• Hear from IASB, FASB, SEC, PCAOB plus investors and corporates
• Updates on IFRS debate—latest news from SEC
• Learn recent IFRS and US GAAP technical developments
• Discuss how to meet information needs of the investment community
Optional pre-conference workshops 8–9 January 2013.
Read more...
  Economics 
  • Analysis: Brazil needs new economic team to restore growth
    Brazil's growth slowed to 0.6% in the third quarter and President Dilma Rousseff is going to have to boost economic expansion if she hopes to win a second term, according to The Economist. As a first step, she should fire Finance Minister Guido Mantega, whose excessively optimistic predictions have lost him confidence of investors, and replace him with someone who can earn back the trust of business, the magazine notes. The Economist (08 Dec.) LinkedInFacebookTwitterEmail this Story
  • China will see 8.5% growth next year, report says
    China's gross domestic product is expected to increase 7.7% this year and 8.5% next year, according to a report by the National Academy of Economic Strategy. Recovering demand for Chinese exports and government policy that encourages growth will drive 2013 expansion, the report says. Xinhuanet.com (China) (12 Dec.) LinkedInFacebookTwitterEmail this Story

Investment professionals are cautiously optimistic about the global economy in 2013, but ethical culture within financial firms needs to be addressed. Click here to view and download the full report.
  Geopolitical/Regulatory 
  • Central bankers gather regularly in search of ideas
    Prominent central bankers who gather bimonthly in Basel, Switzerland, to discuss the state of the global economy are open to ideas. They're also tapping into the training of those who have studied or taught at the Massachusetts Institute of Technology, including Federal Reserve Chairman Ben Bernanke. "They are taking risks because it is an experimental strategy," said Kenneth Rogoff, an economics professor at Harvard University. The Wall Street Journal (12 Dec.) LinkedInFacebookTwitterEmail this Story
  • U.S. swaps regulator poised to give ground to foreign counterparts
    The Dodd-Frank Act ramps up oversight of swaps deals to include any foreign financial institution doing substantial business with "U.S. persons." However, the Commodity Futures Trading Commission, aiming to rally foreign regulators around U.S. efforts to rein in trading, says it plans to temporarily define "U.S. persons" to mean only U.S. residents and companies incorporated in the U.S. Language announced during the summer was much broader. The Wall Street Journal (12 Dec.) LinkedInFacebookTwitterEmail this Story
  • Bank execs will discuss Volcker rule at House panel hearing
    The U.S. House Financial Services Committee has scheduled a hearing Thursday regarding the Volcker rule. Representatives from financial institutions are prepared to argue against a ban on proprietary trading in favor of higher capital standards. Bloomberg (13 Dec.) LinkedInFacebookTwitterEmail this Story
  • SEC had concerns before JPMorgan experienced large loss
    The Securities and Exchange Commission says it expressed concern about JPMorgan Chase's proprietary trading before the bank lost $6.2 billion on a derivatives bet. The agency says that from June 2011 to February, it sent letters to the bank seeking information. U.S. Sen. Carl Levin called the situation a "textbook" case for a need to tighten the Volcker rule, which curbs proprietary trading by banks. Bloomberg (11 Dec.) LinkedInFacebookTwitterEmail this Story
India Investment Conference | 11 January 2013
Hear the world-class experts at our conference, "India and the New Financial Order", an event jointly organised by CFA Institute, the Indian Association of Investment Professionals and the National Institute of Securities Markets.

Register before 14 Dec 2012 and save INR2,000.
  Financial Products 
  • FlexShares plans 6 dividend ETFs with self-indexing
    FlexShares filed with the Securities and Exchange Commission to launch six dividend-focused exchange-traded funds that would track indexes managed by parent Northern Trust. The International Quality Dividend Index Fund, the International Quality Dividend Dynamic Index Fund, the International Quality Dividend Defensive Index Fund, the Quality Dividend Index Fund, the Quality Dividend Dynamic Index Fund and the Quality Dividend Defensive Index Fund would trade on NYSE Arca. IndexUniverse.com (12 Dec.) LinkedInFacebookTwitterEmail this Story
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