Financial News

Financial newspaper is a newspaper specializing in Finance topics.

Articles from September 24, 2001

Anglo American Digs Deep and Goes Global
Byline: The CFO interview Tony Lea Anglo American Outside Tony Lea's office is a large, gold statue of Cecil Rhodes, the 19th-century colonial adventurer and nation builder. It's a vivid symbol of Anglo American's past as a South African diamond...
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Attacks Highlight Worries about Smaller Players
Byline: Natasha de Teran The market shocks caused by the terrorist attacks on the United States have highlighted concerns surrounding smaller players within the credit derivatives market. Bankers heavily involved in that market say they are able...
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Axa Picks 10 for Multi-Manager Roster
JP Morgan Fleming, Merrill Lynch, SG and GMO Woolley have been chosen to run UK equities in Axa Investment Management's multi-manager operation, which is now worth [pound]600m (E950m), writes William Hutchings. Ten managers appear on Axa's multi-manager...
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Bargain Prices May Benefit Telecoms
Bankers are divided as to whether the latest drop in share prices around the globe will lead to a slowdown in deal flow that will last several months or several years. This news may, however be good for a handful of telecoms companies and their principal...
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Basel's Three Basic Approaches
The Basel Committee has proposed three methods to calculate operational risk levels at financial institutions worldwide. The committee issued its proposals in January, and the period for market commentary is nearing its end. A final recommendation...
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Brake on Money Laundering
The importance of the international campaign against money laundering was given added emphasis in the aftermath of the terrorist attack on New York and Washington. The FBI asked all domestic and international banks operating in the US to check their...
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British Airways
The Sunday Telegraph British Airways is preparing a [pound]2bn (e3.16bn) sale and leaseback of its property portfolio to boost cash reserves and bolster its balance sheet to cope with the dramatic fall in passengers in the wake of the American terrorist...
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British Firms Angered by FSA Risk Controls
British investment firms are up in arms over being forced to reorganise executive responsibilities to satisfy Financial Service Authority risk controls. The responsibility requirements will form part of the formal creation of the FSA as a single...
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Calls for T+1 to Be Pushed Back
The sheer scale of the disaster recovery needed following the terrorist attacks on New York is likely to set the securities industry back in its goal of reaching next-day settlement in 2004. Andrew Tinney, partner and head of the financial services...
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Calpers Agrees to Sink Money into Fine Wines
Calpers, the biggest pension fund in the world, has agreed to invest $100m (E108m) of its funds in the vineyard industry. The California pension fund's investment committee approved a proposal to allocate the capital to Premier Pacific Vineyard...
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Cantor to Honour Bonus Payments
Byline: Margareta Pagano Cantor Fitzgerald, the US inter-dealer broker that lost 700 of its workers in the New York tragedy, moved quickly last week to stamp down on claims that it would not be paying out bonuses to the families and relatives of...
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Capital Flows to Emerging Markets Are Likely to Shrink
Even before the terrorist attack on New York emerging markets were having another bad year, with a crisis in Argentina, a 50% devaluation of the Turkish lira and the dramatic collapse of Asian exports. Once concerned about limiting the investment of...
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Commerzbank Braced for Redundancies
Byline: William Wright Commerzbank Securities is bracing itself for a wave of redundancies next month after its parent Commerzbank last week gave up its pledge not to cut staff to save costs. The bank has been the only sizeable US or European...
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Crucial Backing for Privatisation
There is scarcely a country in the developed or developing world that has not either implemented or considered bank privatisation. The success of the policy, which is regarded now as one of the key elements in building a modern market-oriented economy,...
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Developing Countries Face the Challenge of Pension Reform
To development bankers and regulators worldwide, pension reform is the source of all good things, from socially responsible welfare policies to buoyant economic growth, and encompassing health, wealth and happiness. To its critics, usually those who...
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Disaster Plans Pay Off
Byline: Mark Fisher Investment banks say they have coped successfully with the huge logistical task of transferring many thousands of staff to alternative offices, following the attack on the World Trade Center two weeks ago. Most are now working...
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Economists Warn It Could Take Six Years for the Markets to Recover
Financial Times Suspicions of insider trading by people linked to the terrorists before the attacks on New York and Washington were heightened when Ernst Welteke, president of the Bundesbank, said there were signs of earlier unusual investments...
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Emerging Markets Bankers Take Long-Term View on Middle East
After the attacks on New York and talk of war in Afghanistan, the Middle East could hardly be expected to figure high on investment bankers' agenda. Emerging markets bankers, however, are more phlegmatic about the latest events and are not reacting...
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Emerging Markets Face Revised Order
Byline: Jeremy adams in new york Secondary trading in emerging market bonds was quick to stabilise last week following the terrorist attacks on the US, but nervous borrowers might look elsewhere for funds in the short term. Whitney Kane, emerging...
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Equity Risk Premium Rises to New Levels
It was only a matter of time before the term equity risk premium (ERP) would be featured more prominently in analysts' reports, writes Lynn Strongin Dodds. Although ERP has been increasing since the market crashed last year, there was hope that...
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European Banks Wake to a Head-Start on US
European banks are beginning to stir from their summer torpor, gently easing their way back into the hurly-burly of financial markets after their prolonged seasonal siesta. Some take the convention to extremes: calls and e-mails to Nordic banks...
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Exchange Prices Affect IPO Activity
Byline: William Wright and Michael Hoare The share prices in the handful of listed European stock exchanges have fallen significantly worse than their wider markets since the attacks in the US. The sharp falls threaten to put the flurry of proposed...
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Fear Takes Hold in Financial Markets
Byline: Peter Wilson-Smith Editor-in-chief Fear and uncertainty are the dominant forces now gripping financial markets and there is no early end to this in sight. The violent swings taking place in equity markets reflect the rapid shifts in sentiment...
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Ford Halts Plans for Bond Sale
Byline: Miles Gregory-Costello Ford, the US-based international car maker, has postponed plans for a bond sale in the wake of the terrorist attacks in the US and amid a jittery market for auto bonds, according to syndicate sources. Ford had planned...
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Growing Force for Harmonisation
When members of the Financial Stability Forum (FSF) met in London earlier this month, the elite group of authorities responsible for financial stability took steps to soothe fraying nerves over the state of the cooling world economy. Members also applauded...
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Hooked on the Surging Power of the Waves
Byline: Mark Talbot is director of international bonds at State Street Global Advisors. His ruling passion is surfing "Surfing is one of the hardest sports to learn and yet one of the most rewarding. You either love it or hate it and if you love...
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Insurance
The Mail on Sunday Crucial paperwork for insuring the World Trade Center had not been completed when terrorists attacked. Cover for the twin towers was being arranged by the Willis Group, the world's third largest insurance broker, said senior...
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Letter from Hong Kong
Hong Kong may be recovering from the wettest summer on record but it is the investment banking community which has had to weather the real storm. With deals among the Association of Southeast Asian Nations (Asean) all but extinct, banks are looking...
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Market Slump Worst since 1973
Byline: Nicholas Lockley and Miles Gregory-Costello The peak-to-trough fall in US and European stock markets, which accelerated last week in reaction to the attacks on the World Trade Center in New York, has now become the worst since the world...
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Maverick Odey's Style Is Returning to Fashion
Hedge fund manager Crispin Odey is finding it easier to find interesting stocks to buy, despite continuing bear market conditions. He says: "I'm a huge fan of the potential in certain stocks such as Railtrack and BSkyB. But there's no point in holding...
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Mercapital Still Has Lots to Spend
The Spanish private equity market has grown exponentially in the past few years and Mercapital Servicios Financieros, Spain's largest buy-out firm, is sitting pretty. It has nearly E500m ($463m) of a E600m fund that closed last December still to...
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New York Attack Shows Importance of Basel Committee's Capital Plans
As unthinkable as they seemed just two weeks ago, the tragic events of September 11 underscored most dramatically the extremes of risk faced by financial services firms operating in an increasingly global and unpredictable marketplace. Banks and...
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Old Guard Wins out over TMT in FTSE Reshuffle
Byline: Lynn Strongin Dodds The FTSE quarterly reshuffle at the end of last week was the latest chapter in the downfall of technology, media and telecoms (TMT) stocks. Only 18 months ago, these shares accounted for roughly 32.5% of the FTSE 100,...
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Owl 600th to List on AIM despite Market Downturn
Byline: Shanny Basar Owl Technologies, a UK ship cleaning company, became the 600th quoted company on AIM, the alternative investment market for growth companies on the London Stock Exchange. During the month, the number of listed AIM companies...
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Pay Unrest at Threadneedle
Byline: Nick Gilbert Senior staff at Threadneedle, the top performing fund manager, are pressing for a hefty incentive package to stay on after Zurich Financial Services completes the expected sale of its much larger, but ailing, US fund management...
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Reinsurance Firms Seek Massive Securitisations
Byline: Mike Foster Reinsurance companies are working on plans to securitise chunks of their portfolios worth billions of dollars following losses incurred by the destruction of the World Trade Center (WTC). Estimates of WTC losses relating to building,...
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Risk vs Return Is Now More Complex
Emerging markets are not for the faint-hearted. The returns are high but the risks are normally much greater than in traditional markets. The art, whether investing in bonds or equities, is to strike the right balance between return and security. And...
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Rivals Surprised by Hands' Property Move
Byline: Michael Hoare Rivals have said that Nomura's Principal Finance Group, run by Guy Hands, risks missing out on a potentially lucrative market by ending its full-time coverage of the UK's public/private property sector. Nomura's unit, which...
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Russia and Poland May Be Silver Lining to Eastern European Cloud
The resurfacing last week of an equity issue from Slovenia that was first mandated in 1999 demonstrates how difficult banks are finding it to complete deals in Central and Eastern Europe. It is getting increasingly hard to sell shares in companies...
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SGAM Swims against the Tide with View on Growth Stocks
Nicola Horlick's SG Asset Management is sticking to its view that quality growth stocks are worth buying, while conceding that market risks have increased following the recent events in the US. SGAM, which manages around [pound]6.5bn (E10.27bn),...
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Singing in the Rain
Boris Fedorov, former deputy prime minister of Russia, is delighted that United Financial Group, the Moscow-based investment bank he chairs, is opening an office in London. The reason? The wonderful English weather. "I like the weather in London....
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S&P Set to Move into New Sectors
Standard & Poor's plans to expand its pan-European equities coverage beyond its five niche areas of technology, media, telecoms, pharmaceuticals and consumer goods. The engineering sector will soon be put under its research microscope. It is also...
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Tears, Tragedy and a Time to Lead
Byline: Margareta Pagano talks to Lee Amaitis, chief executive of Cantor Fitzgerald International, who still finds it hard to hold back the tears Lee Amaitis says he won't let himself cry in public any more, only when he is alone. "I have to stop...
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Temporary Hold on Hiring and Firing
Before the attacks in New York, one thing in the financial services industry seemed certain: many staff were facing early redundancy as banks reacted to continuing poor market conditions. That certainty has now been subsumed by the disaster. When the...
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Terror Attack Hits Fundraising
Byline: Nicholas Lockley The private equity industry looks to be another casualty of the World Trade Center terrorist attack. The destruction of the twin towers is likely to compromise the industry not just in terms of financing for buy-outs,...
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The Case for Soft Commissions
Byline: Ben Wood Guest Comment The debate initiated by the Myners' report on investment management in the UK is in danger of becoming, at best, confused and, at worst, misinformed. In his recent review of the pension fund industry, Paul Myners has...
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US Events Impact on Leveraged Buy-Outs
Byline: Jeremy Adams in New York Leveraged finance bankers say that their market could take longer than most to recover from the aftermath of the terrorist attacks in the US. It will take a long time to determine the impact on the leveraged...
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Valiente Quits after Market Scandal
Senior Appointments Pilar Valiente, the head of the Spanish stock market regulator, the CNMV (Comision Nacional del Mercado de Valores) has resigned on the back of the collapse of Gescartera, the mutual fund manager and stockbroker under investigation...
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Virgin Fears Unfair Competition as the US Launches Rescue Package
The Independent on Sunday Virgin Atlantic feared it would face unfair competition from US airlines which are due to receive a bail out from Bush's administration following the recent terrorist attacks. Virgin, along with BA, British Midland and...
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Volatile Credit Markets Reflect Lack of Appetite
Credit markets will remain volatile for the foreseeable future, according to investors, bankers and analysts, who say that the recent US-led crisis of confidence is giving way to longer-term concern about the economic health of the developed markets....
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Volatile Markets Hit Corporate Bond Prices
Byline: Piers Townsend The volatility in the US and European equity markets when they sold off last week had a dramatic effect on the corporate bond market. While low-risk bond prices rocketed higher as investors sought a safe haven, low-rated debt...
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Winton Diversifies into New Asset Classes
Byline: Niki Natarajan Winton Capital Management is diversifying away from its managed-futures roots. Founded in 1997 by David Harding, a co-founder of Adam Harding and Lueck in 1987, Osman Murgian and Martin Hunt, Winton has launched the Winton...
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WPP Bid Is Recommended after Havas Drops Offer
Financial Times Havas Advertising of France is pulling out of the bidding battle for Tempus because the UK advertising buying agency's business outlook is unclear after the terrorist attack on the US. As a result, Tempus's board recommended a...
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Zurich Set to Lose Kwak's Services
Byline: William Hutchings Zurich Scudder's UK fund management business is set to lose the services of Seung Kwak, the Japanese equities manager whose excellence recently helped the firm break into the UK institutional market. This blow to Zurich's...
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