We need to find a fairer way of providing Goods and Services to the rest of the people on Earth.Cryptocurrencies and/or Gold Standard of money....maybe the answer to fight hyperinflation caused by too much printing of paper/fiat currencies by Governments and Central Banks all over the World. (https://nomorefiatmoneyplease.blogspot.com)
INTERCONTINENTAL Exchange (ICE) is set to launch its Singapore futures and clearing house - ICE Futures Singapore and ICE Clear Singapore - on Nov 17, the exchange and clearing house network said on Wednesday.
The launch, subject to final approval by the Monetary Authority of Singapore (MAS), will see five new contracts in its first tranche - mini Brent futures, mini gasoil futures, kilo gold futures, mini onshore renminbi futures and mini offshore renminbi futures.
"ICE Futures Singapore will offer a range of global and regional products designed to meet the needs of market participants for efficient trading and clearing services in their local jurisdiction," said Lucas Schmeddes, president and COO of ICE Futures Singapore and ICE Clear Singapore.
ICE also said that ICE Trade Vault, LLC has submitted a foreign trade repository application to MAS, which it said would "further support market participants' compliance with regulatory reform in the region".
Dollar little changed as investors await Fed rate call
The dollar was mostly little changed against other major currencies Wednesday as investors waited for next week's Federal Reserve decision on whether to raise zero-level interest rates.
PHOTO: REUTERS
[NEW YORK] The dollar was mostly little changed against other major currencies Wednesday as investors waited for next week's Federal Reserve decision on whether to raise zero-level interest rates.
"Gains have been tougher to sustain for the dollar of late on the notion that even after nearly a decade it may still be too soon for the Fed to raise interest rates given risks to growth from stubbornly low inflation, China's slowdown and turbulent markets," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
Manimbo said if global markets calm, that could clear the way for the Fed's policy-setting Federal Open Market Committee to raise the central bank's key federal funds rate, "which would leave the dollar ripe for a big bounce."
The greenback traded in a narrow range Wednesday, but notably firmed against the Japanese currency, buying 120.54 yen around 2100 GMT, up from 119.82 yen the prior day.
A number of analysts expect the Fed to leave the fed funds rate unchanged next week, especially after the market turmoil unleashed by China's surprise currency devaluation on August 11. The prospects for a hike remains uncertain, though the odds against it have risen since last Friday's mixed US jobs report.
"There are still two more FOMC meetings in 2015 after next week," Deutsche Bank analysts said in a research note.
"Thus, the Fed could wait a little bit longer to see if global financial markets settle down and if there is any negative impact on business and consumer confidence from recent market gyrations."
Britain should overhaul the way it runs a growing sprawl of state-owned financial bodies ranging from nationalised banks to institutions that manage student loans and business lending, the country's spending watchdog said on Thursday.
PHOTO: AFP
[LONDON] Britain should overhaul the way it runs a growing sprawl of state-owned financial bodies ranging from nationalised banks to institutions that manage student loans and business lending, the country's spending watchdog said on Thursday.
Britain now has 54 state-controlled financial institutions, double the number in 2007, many of which were created as the government battled to keep the economy afloat during the financial crisis.
They now make up a sizeable chunk of the government's balance sheet - wholly-owned government institutions represent a total asset value of 222 billion pounds (S$483 billion) - but no single government agency commands an overview of them, the National Audit Office (NAO) warned.
The NAO also said it was hard to distinguish whether some of these bodies were supposed to be temporary.
"Most of these institutions are unregulated which makes it difficult to see how the government can fully understand what is going on across these bodies or ensure taxpayers' money is being properly protected," said Meg Hillier, an opposition Labour MP who chairs parliament's committee of public accounts.
The NAO concluded the government should take a portfolio approach to managing its financial institutions.
The government is reducing its exposure to the financial sector by selling shares in Lloyds Banking Group and RBS, two major banks which were bailed out with taxpayer funds during the crisis.
But at the same time it will expose itself to more debt through a further expansion of student loans, as well as programmes like the Help to Buy mortgage subsidy scheme.
Overall, the government risks losing more than the 200 million pounds it expects to see over the next five years.
"The government's poor track record in achieving value for money from selling shares and getting back the money will give the public little confidence that the debt increase will be limited to 200 million pounds," said Ms Hillier.
Last year Ms Hillier's committee was critical of the government's sale of Royal Mail, which it said was blighted by a fear of failure and poor advice from state-appointed banks.
Companies in Europe boost long-dated debt to lock in low rates
Companies in Europe have taken on more long- term debt this year than at any time this century as they seek to lock in low borrowing costs.
PHOTO: REUTERS
[LONDON] Companies in Europe have taken on more long- term debt this year than at any time this century as they seek to lock in low borrowing costs.
The region's largest businesses have sold 225 billion euros (US$251 billion) of bonds maturing in a decade or more this year, the most in annualized data compiled by Bloomberg going back to 1999. Bonds due in more than 10 years account for 36 per cent of all investment-grade notes sold in 2015, more than any other maturity range, according to data compiled by JPMorgan Chase & Co.
Allianz SE and Bayer AG are among companies that sold bonds due in as much as 60 years, taking advantage of cheap financing costs for as long as possible. Investors were attracted to the debt as yields suppressed by European Central Bank stimulus sent them in search of riskier assets. The window of opportunity for borrowers may be narrowing as the region's growing economy increases inflationary pressure and the Federal Reserve prepares to lift interest rates.
"Yield-driven investors were forced to go further along the curve and take more risk in their credit portfolios when the rates went lower and lower," said Jeroen Van Den Broek, the head of developed-markets credit strategy and research at ING Bank NV in Amsterdam.
Insurance companies led purchases of the bonds, "then benchmarks that other investors follow started to become longer and non-insurance companies looked to buy more longer- term credit."
More than half of the companies in the Stoxx Europe 600 Index have increased total borrowings this year, according to data compiled by Bloomberg. Companies included on the gauge amassed an average 11 billion euros of debt due in more than a year, the most since 2012, according to the most recent financial filings compiled by Bloomberg.
Euro-area companies have issued 1.75 trillion euros of loans of all maturities this year, up 9.7 per cent from this time in 2014 and the most since 2009, according to data compiled by Bloomberg. Bond sales are accelerating, with companies raising 30 per cent more since the end of June than in the same period last year, the data show.
Increased indebtedness reflects a "return to normal," said Philipp Kuckuck, the director of corporate finance at Stuttgart- based German auto-parts maker Mahle International GmbH, which sold 500 million euros of seven-year bonds in May.
"After the financial crisis, many corporates had deleveraged significantly and are now returning to a more normal environment," Mr Kuckuck said.
The average cost of borrowing for investment-grade companies in Europe reached a record low of 0.85 per cent in March and is now 1.37 per cent, according to Bank of America Merrill Lynch indexes. ECB President Mario Draghi last week affirmed his commitment to economic stimulus that has helped suppress yields.
"There is certainly scope for companies to increase leveraging, and that is likely to happen, to some extent, as CEOs grow in confidence," said Julian Marks, a London-based portfolio manager at Neuberger Berman, which oversees US$250 billion of assets.
"A lot of companies operated very defensively given the huge uncertainties over Europe. More action from the ECB and gaining control over the eurozone crisis have been very important in changing this."
Citi banker used M&A deal to manipulate market, former FX trader tells court
Senior Citigroup investment bankers put the interests of the US bank ahead of clients, trading on insider information ahead of a major M&A deal five years ago, one of its former FX traders told a London court on Wednesday.
PHOTO: BLOOMBERG
[LONDON] Senior Citigroup investment bankers put the interests of the US bank ahead of clients, trading on insider information ahead of a major M&A deal five years ago, one of its former FX traders told a London court on Wednesday.
Perry Stimpson, a former Citigroup foreign exchange trader who is claiming unfair dismissal, said the bank was handling a big M&A deal in 2010 and made millions trading foreign exchange ahead of it - a practice called "front running" - in direct contravention of its code of conduct.
Mr Stimpson, who is representing himself at the hearing at an employment tribunal, said the deal had a foreign currency element that was handled by Jeff Feig, who was global head of trading at the time.
Mr Stimpson said Citigroup bought cash and options that pushed the sterling rate higher in advance of the transaction, which allowed the bank to net US$35 million profit.
See who is talking about CITIGROUP
Last 30 days:
3955
175
840
30 days avg
HOT COMPANIES
Sport Direct Intl +707% messages
Anglo American +385%
Hargreaves Lans +298%
Barratt Develop +297%
Morrisons +112%
Rolls-Royce +90%
GlaxoSmithKline +78%
Diageo +70%
ABF +67%
BT +65%
Anglo American +385%
Hargreaves Lans +298%
Barratt Develop +297%
Morrisons +112%
Rolls-Royce +90%
GlaxoSmithKline +78%
Diageo +70%
ABF +67%
BT +65%
Mr Feig declined to comment when contacted by Reuters.
Mr Feig, who was employed by Citigroup in the US and still lives there, resigned in May 2014, before Mr Stimpson made allegations against him.
Citi lawyer Diya Sen Gupta told the court Stimpson's allegation was investigated "on a privileged basis," meaning she could not disclose the findings.
Citigroup declined to comment further.
In its submission at the start of the hearing Citigroup said allegations of misconduct by others made by Stimpson in his disciplinary proceedings were forwarded to compliance. It said if misconduct was proven against existing employees then disciplinary action was taken.
Mr Stimpson said he was using the example of Feig's activities to ask the bank's witnesses in court why he was singled out for breaches of the bank's code when senior staff were not. He said he told the bank about the misconduct and other examples at a disciplinary hearing in June 2014.
Citi has said Mr Stimpson was dismissed for serious breaches of contract, alleging he shared confidential client information with traders at other banks via electronic chatrooms.
Mr Stimpson, a forex trader at Citigroup in London for 25 years, was dismissed last November in the wake of an industry scandal that resulted in banks paying more than US$10 billion in fines for failing to stop traders manipulating the FX market.
Mr Stimpson said Citigroup staff breached confidentiality around some clients, especially central banks. "It was the culture to talk about central bank activity," he said.
He asked Jerome Kemp, Citi's global head of futures who was involved in Mr Stimpson's disciplinary process, whether the rules on client confidentiality "could be bent at the direction of senior management." Mr Kemp said they could not, and denied there were different standards for central bank clients.
"I believe every one of our clients has the right to expect the information they share with us...is protected by confidentiality. There would be no carve out in respect to a central bank or any other client," Mr Kemp said.
New Zealand snipped a further 0.25 percentage points off interest rates on Thursday, the third reduction this year, and with the central bank suggesting further easing was likely in coming months.
PHOTO: BLOOMBERG
[WELLINGTON] New Zealand snipped a further 0.25 percentage points off interest rates on Thursday, the third reduction this year, and with the central bank suggesting further easing was likely in coming months.
The cut in the official cash rate (OCR) to 2.25 percent was widely expected following similar reductions in June and July.
"Domestically, the economy is adjusting to the sharp decline in export prices, and the consequent fall in the exchange rate," bank governor Graeme Wheeler said in a statement.
"Several factors continue to support growth, including robust tourism, strong net immigration, the large pipeline of construction activity in Auckland and other regions, and, importantly, the lower interest rates and the depreciation of the New Zealand dollar."
Mr Wheeler said further depreciation was appropriate given the sharpness of the decline in New Zealand's export commodity prices.
The New Zealand economy is now growing at an annual rate of around 2.0 per cent.
Wheeler said activity had slowed due to the levelling off of construction in the multi-billion dollar rebuild in Christchurch after the South Island city's devastating 2011 earthquakes.
"A reduction in the OCR is warranted by the softening in the economy and the need to keep future average CPI inflation near the 2.0 per cent target midpoint," the bank governor said.
"At this stage, some further easing in the OCR seems likely. This will depend on the emerging flow of economic data."
