Wednesday, August 9, 2017

A top banker left Bank of America to join RBC, but now he's changed his mind

A top banker left Bank of America to join RBC, but now he's changed his mind

Jonathan YalmokasJonathan Yalmokas at a panel discussion at the SALT conference in Las Vegas in 2014. REUTERS/Rick Wilking
Jonathan Yalmokas, a top Wall Street executive who specializes in servicing hedge funds, has changed his mind about joining RBC Capital Markets and is headed to Cantor Fitzgerald instead.
Yalmokas resigned as the head of prime brokerage for the Americas for Bank of America Merrill Lynch in June and was due to start running the equity financing business for RBC in September. Instead, he's joining Cantor Fitzgerald to serve as global head of prime services, according to people familiar with the matter.
Both Cantor Fitzgerald and RBC declined to comment.
Yalmokas was the managing director of Bank of America's prime brokerage business for six years, and before that he ran prime brokerage for UBS for five years, according to his profile on LinkedIn. Yalmokas declined to comment.
This is the latest in a string of big hires for Cantor Fitzgerald.
In January, the firm named former Deutsche Bank co-CEO Anshu Jain as president. In April, the firm nabbed Pascal Bandelier from Barclays to run its global equities business.
Get the latest Bank of America stock price here.

Tuesday, August 8, 2017

UK prepared to pay 40bn-euro Brexit bill: report

UK prepared to pay 40bn-euro Brexit bill: report

Timeline of the Brexit talksTimeline of the Brexit talks © AFP Gillian HANDYSIDE
London (AFP) - Britain is prepared to pay up to 40 billion euros ($47.1 billion) to the European Union to settle its accounts when it leaves the bloc, the Sunday Telegraph newspaper reported.
It is the first time the British side has put a figure on its so-called Brexit bill -- although the sum falls well short of the 100-billion-euro sum discussed in Brussels.
The newspaper report, based on unnamed government sources, said Britain would pay this only if the EU agrees to negotiate the settlement as part of a deal on future relations, including trade.
Brussels has said progress must be made on the divorce bill, as well as the rights of European citizens living in Britain and the Irish border issue, before any talks can start on a free trade agreement.
British officials are looking at proposing a transition deal where Britain would continue to make net payments to the EU of 10 billion euros a year for up to three years after it leaves in March 2019, the Telegraph said.
This money, paid in return for continued access to Europe's single market, would be a "partial down-payment" on the final bill.
The EU's chief negotiator, Michel Barnier, has declined to publicly name a sum for Britain's divorce bill, which includes its share of EU spending projects already agreed, as well as pension contributions of staff, among other expenses.
But he said the "methodology" for determining how much Britain must pay should be worked out during the first phase of the Brexit negotiations, which is due to end in October.
A number of senior EU officials have confirmed to AFP the estimate of 100 billion euros.
Officials have previously said there is scope for paying the bill in instalments, and that the total figure may eventually come down because of jointly-held assets that the EU must reimburse Britain for.
More: AFP

US and China pressure North Korea after sanctions vote

US and China pressure North Korea after sanctions vote

China's Foreign Minister Wang Yi (R) shakes hands with North Korea's Foreign Minister Ri Yong-Ho (L) during their bilateral meetingChina's Foreign Minister Wang Yi (R) shakes hands with North Korea's Foreign Minister Ri Yong-Ho (L) during their bilateral meeting © POOL/AFP STR
Manila (AFP) - The United States and China piled new pressure on North Korea Sunday to abandon its nuclear missile programme after the UN Security Council approved tough new sanctions which could cost Pyongyang $1 billion a year.
One day after Council members voted unanimously for a partial ban on exports aimed at slashing Pyongyang's foreign revenue by a third, top diplomats from the key powers in the dispute met in Manila.
US Secretary of State Rex Tillerson said he was encouraged by the vote, but officials warned that Washington would closely watch China -- North Korea's biggest trade partner -- to ensure sanctions are enforced.
China's Foreign Minister Wang Yi met his North Korean counterpart Ri Hong-Yo before a major regional security forum being hosted by the 10-nation Association of Southeast Asian Nations.  
He urged the North to halt its nuclear and ballistic missile tests.
"It will help the DPRK to make the right and smart decision," Wang told reporters, speaking through a translator, after talks with Ri -- referring to the sanctions and to Ri's presence in Manila. 
Pyongyang's top envoy has so far avoided the media in Manila. 
But in a characteristically fiery editorial before the latest sanctions were approved, the North's ruling party newspaper Rodong Sinmun warned against US aggression.
"The day the US dares tease our nation with a nuclear rod and sanctions, the mainland US will be catapulted into an unimaginable sea of fire," it said.
Tillerson was due to meet Wang and Russia's Foreign Minister Sergei Lavrov later on Sunday, seeking to intensify Kim Jong-Un's diplomatic isolation and reduce the risk of renewed conflict.
"It was a good outcome," Tillerson said of the UN vote, before a meeting with South Korean Foreign Minister Kang Kyung-Wha.
Senior US envoy Susan Thornton said Washington was "still going to be watchful" on the implementation of sanctions, cautioning that previous votes had been followed by China "slipping back".
But she added China's support for the UN resolution "shows that they realise that this is a huge problem that they need to take on".
- 'Military option' -
The urgency of the situation was underlined by President Donald Trump's national security adviser H.R. McMaster, who told MSNBC news that the US leader was reviewing plans for a "preventive war".
"He said he's not going to tolerate North Korea being able to threaten the United States," McMaster said. 
"It's intolerable from the president's perspective. So of course, we have to provide all options to do that. And that includes a military option."
Saturday's UN resolution banned exports of coal, iron and iron ore, lead and lead ore as well as fish and seafood by the cash-starved state.
If fully implemented it would strip North Korea of a third of its export earnings -- estimated to total $3 billion per year despite successive rounds of sanctions since the North's first nuclear test in 2006.
The resolution also prevents North Korea from increasing the number of workers it sends abroad. Their earnings are another source of foreign currency for Kim's regime.
It prohibits all new joint ventures with North Korea, bans new investment in current joint companies and adds nine North Korean officials and four entities including the North's main foreign exchange bank to the UN sanctions blacklist.
- What next? -
Trump hailed the vote -- saying in a tweet that the sanctions will have "very big financial impact!" -- and thanked Russia and China for backing a measure that either could have halted with their UN veto.
The United States began talks on a resolution with China a month ago, after Pyongyang launched its first intercontinental ballistic missile on July 4, followed by a second ICBM test on July 28.
But the measure does not provide for cuts to oil deliveries as initially proposed by the United States -- a move that would have dealt a serious blow to the North's economy.
China accounts for 90 percent of trade with North Korea, and Beijing's attitude to its volatile neighbour will be crucial to the success or failure of the new sanctions regime.
China and Russia had resisted the US push, arguing that dialogue with North Korea was the way to persuade it to halt its military programmes.
Speaking to reporters after the council vote, Washington's ambassador to the UN Nikki Haley said "what's next is completely up to North Korea."
US officials have insisted that while Tillerson and Ri will be in the same room during the Manila forum, there would be no direct meeting between the two envoys.
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More: AFP

A bunch of indicators are warning of 'a break in the stock market'

A bunch of indicators are warning of 'a break in the stock market'

sinkholeDrew Angerer/Getty
Alarms are going off even with the stock market at an all-time high.
The obvious ones include a degree of complacency illustrated through low volatility and the overall valuation of the stock market.
But there are more reasons to be concerned below the surface. Brad Lamensdorf, the portfolio manager of the short-only Ranger Equity Bear ETF, laid out some of the more hidden warning signs that may be worth looking into.
"As the indexes continue to produce a series of higher highs, subsurface conditions are painting an entirely different picture," Lamensdorf said in his July market timing report.
"The market capitalized indexes are dominated by names such as Amazon, Microsoft and Johnson and Johnson. The good performance of these large companies is masking the fact that many stocks, including REITS and those in the retail sector, have already entered bear market territory."
Lamensdorf warned as early as March that the market was due for a correction, generally defined as a 10% drop in stocks. The benchmark S&P 500 has gained nearly 11% this year. 
As uneasy as corrections make investors, they're normal interruptions of bull-market runs. And one right now wouldn't necessarily mark the end of the current eight-year-old bull run. 
Lamensdorf points to the advancing/declining volume of equities on the New York Stock Exchange and the Nasdaq as evidence that the rally is due for a break. It's an indicator of how much pressure traders are placing to either buy or sell a stock, and signals bullish or bearish sentiment. When advancing volume exceeds declining volume on net, that's bullish.  
The 21-day cumulative excess of advancing share volume over declining share volume has hit four record highs since 2016. This happened while the S&P 500 hit all-time highs. 
But every new peak has been lower than the previous one, and it shows that institutional buying has not been following the indexes, Lamensdorf said. 
In addition to this, "an alarming percentage" of NYSE and Nasdaq stocks are hitting 52-week lows even though the S&P 500 has marked several new highs.
"Recently there were more than 340 securities that sank to 52-week lows, the second highest level going back as far as 1965," Lamensdorf said. "Similar spikes occurred in 1973 and 1999, both directly preceding significant corrections."
He also points to Investors Intelligence's weekly report on buy and sell climaxes. A buy climax occurs when a stock makes a 12-month high, but closes the week with a loss. Buying climaxes over the last 18 months have remained elevated, Lamensdorf said, and it shows that buyer interest is topping out. 
Lamensdorf's ETF is 50% short equities in anticipation of a correction.

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