Financial News

Financial newspaper is a newspaper specializing in Finance topics.

Articles from September 14, 2003

Advisory Arm to Boost Syz's Assets
Byline: Pirkko Juntunen Syz, the Swiss private bank and asset management firm, has set itself ambitious growth targets for new business after launching a hedge fund advisory arm. The firm is hoping it can keep up with its impressive growth since...
Auctions Put Pressure on Fees
Byline: David Rothnie The total amount of M&A fees paid to investment bankers has slumped by 19% this year, according to Dealogic. In the year to date, corporates have paid advisers $2.7bn ([euro]2.4bn), as against $3.2bn during the same period...
Balancing the New Basel Accord
Byline: Natasha de Teran Regulatory changes are rarely welcomed by those they affect most directly. When they involve considerable upheaval and expense, and their details emerge in piecemeal fashion they tend to be particularly unpopular. It is...
Banks Take a Long View on Iraq
Byline: Richard Dean In the aftermath of the war in Iraq, the US is finally beginning to turn its attention to reconstruction of the country. Funding for that reconstruction is giving international banks a foot in the door of the Iraqi market. To...
BG Focuses on M&A Growth
Byline: Alice Hohler BG - formerly known as British Gas - likes to keep its head down. The company spent much of the late 1990s in the headlines as it restructured its business and demerged its customer service and pipelines divisions, keeping investment...
BNP Paribas Wins PFI Market Share
Byline: Vivek Ahuja BNP Paribas has strengthened its position as a leading player in the high-margin European project debt market by launching a bond to finance the UK Derby Healthcare project, which is the largest private finance initiative (PFI)...
Bond Bubble Danger as Pensions Switch Funds
Byline: Ben Wright and Alistair Graham Pension funds are switching to fixed-income investments in such numbers that consultants have started to warn about a bond bubble created by low interest rates and excessive demand. The latest report by...
Bond Outlook Brightens after Rating Upgrades
Byline: Vivek Ahuja The global default rate among speculative-grade rated companies rose last month after reaching its lowest level in more than three years in July.The rate of companies defaulting on their debt rose to 5.8% in August compared with...
Business Almost as Usual as Post-September 11 Fear Fades
Byline: Jeremy Adams The front-page headline on the Daily News is a cryptic "J-No". A picture of pop siren Jennifer Lopez with a half-smile and readers are invited to a full explanation of why she and actor Ben Affleck postponed their wedding on...
Calling an End to Wall Street Recession
Byline: Peter Wilson-Smith, Editor-in-chief The long recession in the securities industry is finally over. That's certainly what it feels like in New York, where employment on Wall Street is rising again.During June and July, the US securities industry...
China Drives Price Surge in Commodities
Byline: Ben Wright China is driving a surge in commodity prices, according to Merrill Lynch Investment Managers (MLIM). From being a small consumer of metals such as copper, aluminium and iron ore, the region has become the world's largest consumer...
Companies Build War Chests with Convertibles
Byline: Shanny Basar Smaller companies are increasingly going to access the equity-linked market to finance acquisitions following in the footsteps of Lastminute.com.The UK online travel site, which is not in the blue-chip FTSE 100 index and has...
Companies Too Small for S&P 500
Byline: Sophie Brodie Standard and Poor's US index, the S&P 500, should be readjusted because it no longer represents the largest US companies, say portfolio strategists at Dresdner Kleinwort Wasserstein (DrKW).According to a report by Diane...
Day of Reckoning Looms after Fixed-Income Party
Byline: Ian Kerr, Personal View The great bond party had to come to an end, but wasn't it fun while it lasted? The main investment banks made billions as they rode a yield curve that was almost consistently positive. Corporate and agency borrowers...
Demand for Mezzanine Drives Record Goldman Sachs Fund
Byline: Caroline Meehan A surge in investors' appetite for mezzanine allowed Goldman Sachs to raise nearly twice the initial target for its $2.7bn ([euro]2.4bn) mezzanine fund. The record fund comes as European private equity deals increasingly...
Derivatives Remain Contentious
Byline: Natasha de Teran The legendary investor Warren Buffet's outspoken comments against the derivatives industry generated endless headlines earlier this year. However, while several like-minded columnists and investors echoed his views, there...
ECM Activity Picks Up in Central Europe
Byline: Caroline Muspratt Politicians insist that European Union enlargement will be good for business. The early signs are already showing in the recent flurry of activity in the equity capital markets in Central and Eastern Europe.Prospects have...
Eric le Boucher: Witnessing the Decline of Old France
"France is in a similar situation to that of the UK in the 1970s," says Nicolas Bavarez, whose provocative statements have made him notorious among the Parisian corporate elite.He is an economist and historian, whose economic and political polemics...
Euribor Swap a Boost for Repo Market
Byline: Natasha de Teran The repurchase agreement (repo) market is to gain a new derivative tool, based on the recently developed Eurepo benchmark.In March last year, the European Banking Federation (FBE), the Brussels-based banking organisation...
European Companies with Good Governance Outperform
Byline: Pirkko Juntunen European companies with good corporate governance clearly outperform those with poor governance, according to a report by GovernanceMetrics International (GMI), the US research firm. The performance gap is, in some cases,...
European Technology and Telecoms Issuance Revives
Byline: Shanny Basar History seems to be repeating itself as share prices are rising and equity capital markets issuance from the technology and telecoms sectors has picked up.There are even signs of technology companies coming back to the initial...
EU Should Tighten Analyst Rules
Byline: Patrick Blum in Brussels The European Union's Forum Group on financial analysts says tough new rules similar to those introduced in the US to fight market abuse are not necessary in Europe, but warned more restrictive rules could be introduced...
Foreign Managers Lose Grip in Netherlands
Byline: Pirkko Juntunen The proportion of Dutch pension assets managed by foreign managers has declined since last year, according to a report by Bureau Bosch.Research by the Dutch consultancy found that foreign managers now manage 33% of outsourced...
Freddie Mac to Test Appetite for Debt
Byline: Piers Townsend Freddie Mac, the US mortgage refinancing agency, will tackle European investors in the coming weeks ahead of its delayed benchmark euro-denominated bond issue.The transaction was originally scheduled to be a 10-year deal worth...
French Hiring Back on Agenda
Byline: Janine Brewis Bear Stearns, Deutsche Bank and Credit Suisse First Boston are among the banks expanding their French corporate finance teams, reflecting a renewed confidence in the country's battered M&A market.With M&A activity in...
FSA to Blame Brokers over Split-Level Scandal
Byline: Mike Foster The Financial Services Authority (FSA), the UK regulator, is set to blame stockbrokers and independent financial advisers - rather than fund managers - for the split-level investment trust scandal. It is expected to publish the...
Fund Managers Cash in on Debenhams Bidding War
Byline: David Rothnie Shareholders in Debenhams, the UK retailer which is the subject of a [pounds sterling]1.7bn ([euro]2.4bn) bidding war, have made more than 40% on their stakes in just over three months.Last week, Debenhams shares jumped 28p...
G30 Cross-Border Report Lacks Clout
Byline: Richard Greensted Navel-gazing is a popular pastime in the securities business. Working parties, industry initiatives and trade associations flourish in the fertile soil of the financial services landscape, where membership of at least three...
Geneva's Great Private Banks Are on the Public Defensive
Byline: Ian Kerr, Personal View Many years ago, when I had a proper job, I used to visit all of the big commercial banks, private banks and money managers in Switzerland. However, as a not very successful history student, my favourite meetings were...
Handling the Finance Scandal
Byline: Jeremy Adams in New York Some mutual funds are securing business gains on the back of the equity market bounce. However, a third of the leading 25 fund managers are still seeing cash drain out of their funds, amid controversy over illegal...
'Hard Cop' Acts on Money Laundering
Byline: Nigel Dudley Money laundering and terrorist financing will certainly be high on the agenda this month at the IMF/ World Bank annual meeting.Regulatory authorities and financial institutions are coming to terms with the new regulations announced...
Hedge Funds Need Better Technology
Byline: Phillipa Leighton-Jones The fund of hedge funds industry does not have sufficiently sophisticated technology, despite controlling more than $81bn ([euro]73bn) in assets, according to a new report published by Celent Communications, a US...
HSBC Republic Team Plans Institutional Foray
Byline: Pirkko Juntunen HSBC Republic Investments, the alternative investments arm of the HSBC group, is planning to branch out into the institutional market through joint ventures with its parent.The alternative asset arm wants to utilise the expertise...
IMF Meeting to Focus on Debt
Byline: Nigel Dudley Two senior financiers were talking together recently about the International Monetary Fund (IMF)/World Bank annual meeting, wondering whether it was worth attending this year's event in Dubai.Nonetheless, the United Arab Emirate...
Investors Sceptical over STP
Byline: Jeremy Adams in New York Straight-through processing (STP) is in danger of becoming the latest white elephant of the IT industry if vendors and brokers behind the project do not win over sceptical investors.STP - processing a trade from...
Italian Buy-Out Companies Target Record Fundraising
Byline: William Hutchings Four Italian buy-out firms have launched funds targeting [euro]2.4bn ($2.7bn) in 2003, the highest amount ever raised by independent Italian firms in one year.The optimism reflects the benefit Italy's economy has reaped...
Mike Foster: Pension Schemes Need More Strikers
Byline: Mike Foster Roman Abramovich's success in poaching Peter Kenyon, chief executive of Manchester United, shows that the Russian understands the importance of employing good strategists to develop Chelsea FC.After all, there is no point in...
Mrs Moneypenny:Christmas Is on the Horizon
I am starting to think about Christmas. As it is only September, you may think it's a bit early, but we had our first Christmas card catalogue sent to the office four weeks ago, so I am not as early as some. My thoughts about Christmas centre around...
New Listing Rules Apply on Nouveau Marche
Byline: Shanny Basar Euronext, the pan-European stock exchange, is introducing new listing rules in order to revitalise the Nouveau Marche, its struggling French technology segment, despite the closure of other growth markets across Europe.The Deutsche...
News in Brief: Alpha Shares Placed
JP Morgan and UBS raised [euro]273m ($306m) by placing shares in Greece's Alpha Bank at a tight 0.57% discount. Alpha Finance acted as the placement agent in Greece.The banks sold 15.9 million ordinary shares, representing 8.6% of Alpha's issued share...
News in Brief: Companies Urged to Embrace Responsibility
Top UK companies are being asked to complete the second Business in the Community (BITC) corporate responsibility questionnaire.The company-led think-tank has carried out a survey of corporate environmental practices for the past seven years; last...
News in Brief: Court Throws out Tibco Request
The US District Court for the Northern District of California has denied Tibco Software's request for a temporary restraining order restricting publication of a white paper that criticises the performance of Tibco's software.Tibco has asked the court...
News in Brief: Gartmore to Distribute Aspect's Hedge Funds
Gartmore Investment Management has signed a deal with Aspect Capital, a hedge fund group, to distribute its range of products.The deal focuses on product opportunities in the UK and Japan. Aspect Capital specialises in managed futures and has a quantitative...
News in Brief: Warner-BMG Advisers Named
Investment banking advisers have entered the merger talks between Warner Music and Bertelsmann Media Group (BMG). While the talks are at an early stage, Morgan Stanley is understood to be advising Warner.JP Morgan and Merrill Lynch are understood to...
New Wave of Tech Firms Heading for IPOs
Byline: Shanny Basar and Ben Wright Investors are showing an increasing appetite for new issues from the technology and telecoms sector, buoyed by rising share prices. But the types of companies coming to the market, and the pattern of issuance,...
Off the Record Is Best
Byline: Mark Fisher Employment disputes often make tedious reading. All those worthy sex discrimination cases seem to merge into each other and become exactly the same.So we should thank Collins Stewart, the broker, and James Middleweek, its former...
Peyrelevade Could Earn [Euro]5m from Options
Byline: Sophie Brodie Jean Peyrelevade, the former chairman of Credit Lyonnais, could walk away from his job at Credit Agricole with more than [euro]5m ($5.5m) profit from his stock options when he steps down in the next few weeks.Peyrelevade was...
Public-to-Private Buy-Outs Return
Byline: William Hutchings The rate of European public-to-private transactions has doubled in the past six months as the pattern of private equity firms buying quoted companies resumes its former rhythm.Data provided by Mergermarket, the research...
Reuters Downgraded by Two of Its Best Clients
Byline: Phillipa Leighton-Jones Goldman Sachs and Lehman Brothers have downgraded Reuters, despite recently having signed deals with the company that were supposed to have changed its fortunes.The two banks signed multi-million pound deals with...
Richard Greensted: Alliances Hold the Key to Survival
Byline: Richard Greensted Component outsourcing was last year's hottest fashion in the custody industry. Starved of any significant total outsourcing deals, custodians began to predict that more and more managers would approach outsourcing from...
Schloss Sets His Sights on Europe
Byline: Jeremy Adams in New York Larry Schloss, head of Credit Suisse First Boston's (CSFB) private equity group, has set his eyes on the European market for growth, believing it is about time the firm started punching its weight in the region.The...
SEC Charges Three Former Knight Traders with Fraudulent Trading
Byline: Shanny Basar The US Securities and Exchange Commission (SEC) has charged three former traders at Knight Equity Markets, formerly called Knight Securities, with fraudulent trading that cost the US firm $1.4m ([euro]1.3m).Brian Delaney, Nicole...
Secondary Market Crucial for PFI Success
Byline: Vivek Ahuja The success of projects under the UK Private Finance Initiative (PFI) sector is at risk unless a secondary market develops to give investors the flexibility to trade their project stakes, according to Ernst & Young.Ernst...
Shareholder Voting Must Improve
Byline: Kit Bingham Companies are urged to make raising the level of shareholder voting a core part of their investor relations activity. This is in light of research showing that turnout at company meetings remains stubbornly stuck at about the...
SSgA Sees Big Growth Prospects in Europe
Byline: Alistair Graham Given another opportunity to organise his company's biggest voluntary redundancy programme, Tim Harbert, chairman and chief executive of State Street Global Advisors (SSgA), admits he would have done things a little differently.More...
Stelios Stuck in First Gear with easyCar
Byline: William Wright EasyCar, the car rental business run by flamboyant Greek entrepreneur Stelios Haji-Ioannou, is losing even more money than was previously thought and is still years away from a possible float.According to its latest accounts...
Sustainable Companies Outperform Peers
Byline: Kit Bingham Innovest, the research company which analyses non-traditional areas of investment risk, continues to produce evidence that companies with a progressive attitude to sustainability outperform those without.In two very different...
Talking Point: Rationality Returns to the Market
Byline: William Hutchings Signs of renewed confidence in the public equity markets are multiplying by the week but private equity firms with a backlog of companies to float should avoid rushing to take advantage.Significant inflows of investors'...
Terrorism Is the Next Threat
Byline: Robert Miller When World Bank and the International Monetary Fund annual meeting took place in Prague three years ago, the event was disrupted by anti-globalisation protesters. Czech police backed by the army, fought street battles with...
Trema Looks to Carlyle for US Boost
Byline: Jeremy Adams in New York Trema, the Swedish financial IT specialist, is hoping that Carlyle Group, the US private equity firm, and its biggest shareholder, can open some doors in US government as it looks to break into the American market....
Understanding the Role and Limits of Regulation
Byline: Sir Howard Davies Central bankers, like orchestral conductors, are a long-lived bunch. Alan Greenspan has been chairman of the Federal Reserve since 1987, with no end to his illustrious term in sight.Eddie George worked for the Bank of England...
Wisbey's Gamble at Lombard Risk Pays Off
Byline: Margareta Pagano John Wisbey swapped a glittering City of London career trading derivatives to start Lombard Risk Management on a shoestring. He went without a salary for months, worked from his basement and did not move into an office with...
Yell Fails to Excite Interest from Brokers
Byline: Sophie Brodie Only four analysts at the larger investment banks have started covering Yell, the [pounds sterling]2.1bn ([euro]3bn) UK directories company, despite its entry into the FTSE 100 last week.Two of the analysts work for Yell's...