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11 February 2013
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  Top Stories 
 
  • EU's Rehn finds global monetary coordination necessary
    EU Economic and Monetary Affairs Commissioner Olli Rehn wants international bodies, such as the International Monetary Fund, the Group of Seven nations and the Group of 20 countries, to better coordinate currency policy. "We need reforms in the international monetary system so as to avoid negative influences on international trade," he told Austrian magazine Profil. Rehn also says that although a stronger euro might be good for portions of the eurozone, many export-reliant southern nations would struggle. Reuters (09 Feb.) LinkedInFacebookTwitterEmail this Story
  • Officials question prospects of eurozone banking union
    European officials are increasingly pessimistic about the chance of finishing banking-union rules by year-end. The biggest sticking point is the establishment of a resolution fund, which would take responsibility for failing banks. Analysts expect no German agreement on fund creation before an election in September, making finishing the law unlikely. "It's unrealistic to expect that we will have a resolution authority or resolution fund in time for the new [European Central Bank] bank supervision in March 2014," EU lawmaker Sharon Bowles said. Reuters (08 Feb.) LinkedInFacebookTwitterEmail this Story
  • Venezuela devalues bolívar
    Venezuela devalued the bolívar by almost a third against the U.S. dollar, shifting the exchange rate from 4.3 to 6.3. Although experts say the move was necessary for Venezuela's fiscal stability, it likely will increase the inflation rate, which is already one of the highest in South America. The New York Times (tiered subscription model) (08 Feb.) LinkedInFacebookTwitterEmail this Story
  • Google chairman plans to sell 3.2M shares
    Eric Schmidt, executive chairman of Google, plans to sell about 42% of his stake in the company during the next year. The 3.2 million shares are estimated to be worth $2.5 billion. Schmidt is selling the shares "as part of his long-term strategy for individual asset diversification and liquidity," according to Google. "This is a routine diversification of assets and Eric remains completely committed to Google." Reuters (08 Feb.), Bloomberg (09 Feb.), The Wall Street Journal (08 Feb.) LinkedInFacebookTwitterEmail this Story
  • China passes U.S. to become world's largest trader
    Chinese and U.S. statistics agree that China traded more goods than the U.S. did last year. The increase occurred despite China's economy being half of the size of the U.S. economy. "It is remarkable that an economy that is only a fraction of the size of the U.S. economy has a larger trading volume," said Nicholas Lardy of the Peterson Institute for International Economics. Bloomberg (10 Feb.) LinkedInFacebookTwitterEmail this Story
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  Market Activity 
 
  • Holidays shutter most Asian markets; Pacific markets slip
    Most Asian stock markets were closed Monday, with Japan celebrating National Foundation Day and Hong Kong, China, Taiwan, Singapore, South Korea and Malaysia celebrating Lunar New Year. Australia's S&P/ASX 200 slipped 0.2%, while New Zealand's NZX 50 inched down 0.1%. India's Sensex was down 0.1% early afternoon. Lunar New Year is expected to keep trading thin during the next several days. MarketWatch (11 Feb.), The Economic Times (India) (11 Feb.) LinkedInFacebookTwitterEmail this Story
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  Economics 
  • G-20 is expected to focus on positive economic signs
    Leaders from the Group of 20 nations are set to meet Friday in Moscow, and analysts think that with enough positive signs in the world economy, the talks will be upbeat and forward focused. "On the whole, recent activity data have been encouraging of our view that the global economy is improving, albeit slowly," said Simon Hayes, a Barclays Capital economist. Even Japan has curbed currency-war fears in recent days, with Finance Minister Taro Aso suggesting that the yen's weakening has been too drastic. Reuters (10 Feb.) LinkedInFacebookTwitterEmail this Story
  • Trade data point to surprise U.S. Q4 growth
    A Commerce Department announcement that the U.S. trade deficit in December sank to its lowest point in three years likely means that gross domestic product rose slightly in the fourth quarter. The government recently announced that it had estimated a 0.1% drop in GDP. "Trade data for December paint a reassuring and encouraging picture of the U.S. economy at the end of last year," said Chris Williamson, Markit Group's chief economist. Reuters (08 Feb.) LinkedInFacebookTwitterEmail this Story
  • Fitch keeps Spain's rating at investment grade
    Spain's BBB rating is two levels above a high-yield bond, but Fitch Ratings plans to keep it there. Fitch said Spain still has some fiscal maneuverability and its debt level will peak at less than 100% of gross domestic product. The debt rating remains one level above ratings by Moody's Investors Service and Standard & Poor's. Bloomberg (08 Feb.) LinkedInFacebookTwitterEmail this Story
CFA Institute: Fourth Annual Middle East Investment Conference
20–21 March 2013
Jumeirah Emirates Towers
Dubai, United Arab Emirates

Hosted with CFA Society Emirates

Register by 20 February 2013 and save US$100.
  Geopolitical/Regulatory 
  • IOSCO focuses on how to avoid another MF Global
    Regulators worldwide are seeking a way for investors to get their assets back in the event of an insolvency, a default or a resolution, according to the International Organization of Securities Commissions. IOSCO says it has guidance on how authorities can better supervise financial intermediaries that hold client assets. Bloomberg Businessweek (08 Feb.) LinkedInFacebookTwitterEmail this Story
  • EU looks to force banks to remain benchmark-rate setters
    The European Commission is working on legislation that would force banks to remain on panels that set the Euro Interbank Offered Rate and other benchmark interest rates. "The commission will propose further legislation on benchmarks in the second quarter of 2013 in order to further clarify the framework under which benchmarks should operate," Internal Market Commissioner Michel Barnier said. "Any banks considering withdrawing from the contributing panels should therefore take into account that they may be required to rejoin the panels." Meanwhile, the European Central Bank is encouraging banks to remain on such panels, saying they play a key role in monetary policy. Reuters (08 Feb.), Reuters (08 Feb.), Bloomberg (08 Feb.) LinkedInFacebookTwitterEmail this Story
  • Basel III could be delayed in U.S. by impact study
    A possible Senate bill would require a quantitative-impact study before the U.S. implements rules by the Basel Committee on Banking Supervision. Although an actual congressional vote could be difficult to achieve, analysts say legislative pressure on regulators might be enough to dissuade them from Basel III adoption indefinitely. Risk.net (subscription required) (08 Feb.) LinkedInFacebookTwitterEmail this Story
CFA Institute Conference: Wealth Management 2013
21–22 March 2013
The Westin Boston Waterfront
Boston, Massachusetts, United States

Hosted with Boston Security Analysts Society

Register by 21 February 2013 and receive a US$200 discount.
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