Ft.com
Three former executives of Washington Mutual have agreed to settle a civil lawsuit stemming from the biggest-ever US bank failure for $75m, the WSJ says, citing people familiar with the situation. The deal would mark the latest setback for the government in a high-profile, http://ftalphaville.ft.com/thecut/2011/12/13/795231/wamu-and-fdic-agree-...
Hostile bank takeovers should be outlawed as part of a package of reforms needed to avoid a repeat of the catastrophic failings at RBS, the chairman of the Financial Services Authority has urged after releasing a long-delayed report into the the bank’s collapse. http://ftalphaville.ft.com/thecut/2011/12/13/795191/fsa-seeks-ban-on-hos...
Intel has warned its fourth-quarter revenues would miss forecasts because of a shortage of hard disk drives created by Thailand’s devastating recent floods, the FT says. The world’s largest chipmaker by sales said flooding around Thai hard disk drive factories had hit the supply of the components. http://ftalphaville.ft.com/thecut/2011/12/13/795161/intel-cuts-revenue-f...
David Cameron on Monday defended his use of the British veto at last week’s EU summit as in the “national interest”, but the strains placed on his coalition government were laid bare when his deputy, http://ftalphaville.ft.com/thecut/2011/12/13/795151/coalition-shows-stra...
Chinese gold imports from Hong Kong, a proxy for overseas buying, hit a fresh record high in October and accounted for more than one-quarter of global demand, the FT reports. Data from the Hong Kong government showed that China imported 85.7 tonnes of gold via Hong Kong in October, http://ftalphaville.ft.com/thecut/2011/12/12/794711/chinese-gold-imports...
India’s industrial output has fallen for the first time in more than two years, sending the rupee to an all-time low and highlighting the vulnerability of emerging market s to the eurozone debt crisis, http://ftalphaville.ft.com/thecut/2011/12/12/794601/indian-industrial-ou...
One of Russia’s richest tycoons said on Monday he would run for president against Vladimir Putin in next year’s election, prompting speculation that the Kremlin may be trying to contain growing public dissent in its “managed” democracy, http://ftalphaville.ft.com/thecut/2011/12/12/794581/russian-oligarch-to-...
Nicolas Sarkozy, French president, on Monday played down the importance of the potential loss of France’s cherished top credit rating, in an about-turn which raised speculation that a downgrade could be close. A lowering of the triple A sovereign rating – which allows France to fund its public spending cheaply – “would be one more difficulty but not insurmountable”, Mr Sarkozy said in an interview with Le Monde newspaper. “We would face such a situation coolly and calmly.” http://www.ft.com/intl/cms/s/0/90cfb17c-24c9-11e1-bfb3-00144feabdc0.html...
Thetrader.se
What are the trends in prime brokerage. What do clients focus, demand and expect? The business of prime brokerage is changing fast, and many will be wiped out. By James Williams, Hedgeweek; For the prime brokers on whom hedge fund managers rely so much on, there’s not been a huge amount to shout about in 2011. Trading volumes are down and leverage is stuck at modest levels of 2.1x to 2.4x (compared to 4x leverage prior to 2008), despite record-low financing costs. It’s fair to say that 2011 hasn’t exactly been a halcyon year for prime brokers. http://www.thetrader.se/2011/12/12/prime-brokers-and-the-future/
Wsj.com
Asian share markets dropped Tuesday amid fresh doubts about Europe's latest plan to contain the region's debt crisis, but several bourses came off their lows as many investors took to the sidelines ahead of the U.S. Federal Reserve rate-setting meeting later in the global day. Japan's Nikkei Stock Average lost 1%, Australia's S&P/ASX 200 fell 1.3%, and Hong Kong's Hang Seng Index slipped 0.9%. South Korea's Kospi Composite dropped 1.3%, China's Shanghai Composite was off 1.3% and India's Sensex was off 1.1%. Many of these markets were off their opening lows. Dow Jones Industrial Average futures were 32 points higher in screen trade.
U.K. Prime Minister David Cameron's decision last week to veto a new European Union treaty aimed at solving the euro-zone debt crisis puts a spotlight on the slew of pending legislation in Brussels aimed at the EU-wide financial-services sector—and the stakes for London's financial sector if it isn't able to influence it. The freshly chilled relations between the U.K. and the EU resulting from Mr. Cameron's move have stoked fear among London financial firms that the loss of goodwill with Brussels lawmakers could deal a blow to the U.K.'s financial sector. http://online.wsj.com/article/SB1000142405297020343040457709422207483734...
The glow of last week's European Union summit faded from the markets on Monday as global investors drove down stocks, bonds and the euro amid concern about the Continent's ability to tackle its debt crisis. Germany's main stock index fell 3.4%, France's was down 2.6% and Italy's plunged 3.8%. The gloom extended to bonds and the euro, which fell sharply against the dollar, losing more than 1.5% to $1.3188, the biggest decline in more than a month. The Dow Jones Industrial Average lost 162.87 points, or 1.34%, to 12021.39. In early trading Tuesday morning, Japanese, Australian and South Korean benchmark indexes all fell 1.4%. http://online.wsj.com/article/SB1000142405297020433610457709490108361303...
Federal Reserve Chairman Ben Bernanke stood on the runway of an Army base in West Texas in the cold predawn of a November morning, welcoming back soldiers from their final deployment in Iraq. He later told them they were coming home to a different battleground. "For a lot of people," he said during a speech at Fort Bliss, "I know it doesn't feel like the recession ever ended." http://online.wsj.com/article/SB1000142405297020431900457708874164918216...
The U.S. economy is on track to grow faster in the current quarter than any time since the second quarter of last year, though several risks—including a possible meltdown in Europe—are clouding the outlook. In recent days, a number of economists have increased estimates for fourth-quarter growth, pointing to stronger-than-expected readings on trade, consumer spending and other gauges. Forecasting firm Macroeconomic Advisers on Friday raised its estimate to 3.7%, from 3.5%, while Goldman Sachs has raised its target to 3.4% from the 2.5% it was predicting two weeks ago. http://online.wsj.com/article/SB1000142405297020433610457709477373022321...
Financial firms tapped the Bank of Japan for a record $4.756 billion in three-month dollar loans on Tuesday, reflecting concerns about a shortage of dollars for year-end book closings as the European debt crisis grinds on. In a loan facility only recently tapped by banks and other financial firms, the BOJ offers unlimited funding for collateralized loans. In this week's offer, it made one-week and three-month dollar-denominated loans available at fixed rates of 0.60% and 0.61%, respectively. http://online.wsj.com/article/SB1000142405297020343040457709540284566996...
Reuters.com
Brent crude was little changed above $107 on Tuesday, after falling in the previous session, on concerns of demand growth as investors worried last week's pact by European leaders may not be enough to stop the region's debt crisis from worsening. Brent rose 6 cents to $107.32 a barrel by 0433 GMT, after sliding to as low as $107.07 and settling down $1.36. U.S. crude gained 17 cents to $97.94, after settling $1.64 lower, trading below $100 for a third day. http://www.reuters.com/article/2011/12/13/us-markets-oil-idUSTRE7AD06820...
Spot gold edged down 0.1 percent to $1,663.68 an ounce by 0034 GMT, off $1,657.04 hit in the previous session, its lowest since late October. U.S. gold was little changed at $1,667.70. The euphoria after European leaders agreed to deepen economic ties in the region faded quickly on Monday, leading to sharp falls in commodities and equities markets. http://www.reuters.com/article/2011/12/13/us-markets-precious-idUSTRE7AK...
The Federal Reserve is likely to hold off offering the U.S. economy fresh stimulus at a meeting on Tuesday as it weighs encouraging signs on the recovery against risks coming from Europe. Central bank officials are expected to continue discussions on how they might sharpen their communications to get more traction out of the monetary easing they have already put in place, but observers rate chances of an announcement as low. http://www.reuters.com/article/2011/12/13/us-usa-fed-idUSTRE7BC0CW201112...
Bloomberg.com
China may use tax cuts to shore up expansion in the second-largest economy next year as export growth weakens and the threat of bad loans from stimulus spending narrows the government’s options. The nation’s top officials are mapping out policies for 2012 at the annual Central Economic Work Conference in Beijing. The event started yesterday, according to the state-run Xinhua News Agency. http://www.bloomberg.com/news/2011-12-12/wen-may-cut-china-taxes-to-spur...
China’s trade restrictions and “interventionist policies” in areas such as intellectual property rights remain a concern for American companies doing business in the Asian nation, the U.S. said. China discriminates against foreign business in “numerous sectors” of the economy, the U.S. Trade Representative’s office said yesterday in its annual report on Chinese compliance with World Trade Organization rules. Continued government intervention in its economy has been a “troubling trend,” the U.S. said. “China seems to be embracing state capitalism more strongly, rather than continuing to move toward the economic reform goals that originally drove its pursuit of WTO membership,” the report said. http://www.bloomberg.com/news/2011-12-13/china-s-interventionist-policie...
Cnbc.com
Only the European Central Bank "has the balance sheet big enough to deal with this crisis" in Europe, Neel Kashkari, Pimco's head of equities, told CNBC Monday. "If it's not the ECB , who's it going to be?" he asked. The central bank is "losing sight of the fact that they’re causing real damage to the European economy and to the global economy, and the longer they wait, the more damage is done, the more expensive this crisis becomes." He also fears Europe's sovereign debt span crisis could spread to the U.S http://www.cnbc.com/id/45641095
BBC.co.uk
Exports from the Philippines fell in October, with sales of electronic goods dropping due to weak demand. Shipments declined by 14.6% compared to October 2010. But compared to the previous month of September, export shipments grew by 4.9%. Exports of electronic goods slumped by an annual 36.5% in October, according to the latest data of the census department. http://www.bbc.co.uk/news/business-16153702
Telegraph.co.uk
The number of people making enquiries about buying a home in the UK is rising at the most sustained rate since spring 2010 despite the eurozone debt crisis, according to estate agents. In November, 7pc more surveyors reported a rise in buyer enquiries than a fall, while 14pc more surveyors also said the number of sales they agreed rose compared to the previous month. This means that enquiries have grown for three consecutive months for the first time since last spring. http://www.telegraph.co.uk/finance/economics/houseprices/8951720/RICS-re...
Smh.com.au
Billions of export dollars look set to keep rolling in at a healthy clip this financial year, despite an uncertain global backdrop. Australia’s resource and energy exports are still expected to rake in a record $206 billion in 2011-12, a 15 per cent increase on the previous year. This is even after the federal government’s Bureau of Resources and Energy Economics (BREE) downgraded the projection by 4 per cent in the past three months because of rising risks to global growth. http://www.smh.com.au/business/export-dollars-to-roll-in-at-healthy-pace...
f 2011 was bad for the Australian housing market, next year could be worse with real estate bears such as Steve Keen predicting an accelerating slide in prices. The University of Western Sydney professor expects home prices will fall between 5 and 10 per cent nationally in 2012, as households opt to pay off loans rather than pile on more debt in the hope of realising a capital gain. “The main force that will drive prices down is precisely the same force that drove them up: the acceleration of mortgage debt,” said Professor Steve Keen. “That is now decidedly negative in Australia.” http://www.smh.com.au/business/housing-market-what-2012-holds-in-store-2...
Europe's solutions to the euro zone crisis could hit growth around the world and especially in neighboring countries where EU banks are strong, World Bank President Robert Zoellick has warned. Zoellick called the world financial system and economy "fragile" and vulnerable to slashed government spending and contracting bank lending - likely results from Friday's EU pact on tighter fiscal discipline. "As I start to look into the end of the year and 2012, I think it's a pretty dicey situation overall. And there's not much room for people to make missteps," Zoellick told CNBC television. "I'm not suggesting we're in a doom period here. But what I can see is that a few mis-turns here or there, including over the coming weeks coming out of this European summit, could raise the risk considerably." http://www.smh.com.au/business/world-business/world-bank-sees-risks-to-g...
Xinhuanet.com
China's industries will remain the most competitive in the global market in 2012, but their strength will be weakened due to the impacts of the global financial crisis, a government think tank report said Monday. According to a blue paper published by the Chinese Academy of Social Sciences (CASS), two important factors -- stagnant growth in developed economies and pressures on the yuan's appreciation -- will trim down the global competitiveness of Chinese industries in 2012. http://news.xinhuanet.com/english/china/2011-12/12/c_131302077.htm
Aiming to spur economic growth, the Sri Lankan Central Bank has relaxed regulations of foreign investments in corporate debentures of local firms and foreign borrowings by local firms, it said in a statement on Tuesday. In the case of corporate debentures raised by local companies, the ceiling imposed on the interest rate of the debentures has been removed and the requirement for the maintenance of a sinking fund by the issuing company has been removed, according to the statement. http://news.xinhuanet.com/english/business/2011-12/13/c_131303680.htm
Finance ministers from Chile, Colombia, Mexico, Peru and Uruguay on Monday agreed to boost measures to mitigate the effects of the global economic crisis. The ministers agreed to increase liquidity and public investment,improve fiscal accounts, and push through reforms to face the crisis effects. "We have established a plan of economic incentive to increase two percentage points of the GDP, which will be implemented in the next year," Peru's Finance Minister Luis Miguel Castilla told the media after the meeting here. http://news.xinhuanet.com/english/business/2011-12/13/c_131303466.htm
U.S. Secretary of State Hillary Clinton said on Monday that what concerns the United States is not the position taken by Britain, but whether the decisions made by the eurozone countries will work to contain the deepening sovereign debt crisis. The top U.S. diplomat said that Europe's debt crisis was part of her talks with British Foreign Secretary William Hague, whose visit came at a time when his country is sinking into isolation after vetoing a new European Union treaty. http://news.xinhuanet.com/english/business/2011-12/13/c_131303499.htm
Thehindu.com
The Indian rupee tanked by 56 paise to a historic low of Rs. 53.40 per U.S. dollar in early trade today due to persistent demand for the American currency from banks and importers on the back of a higher dollar in overseas markets and weak domestic equity markets. The rupee resumed lower at Rs. 53.10/11 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs. 52.84/85 per dollar, and dropped further to an all-time low of Rs. 53.40 per dollar before quoting at Rs. 53.27/28 per dollar at 1030 hours. http://www.thehindu.com/business/markets/article2711279.ece?homepage=tru...
Yonhapnews.co.kr
South Korean banks' short-term overseas borrowing declined in November as Europe's debt crisis prompted them to repay foreign debt to brace for the worsening of the turmoil, the financial watchdog said Tuesday. A total of 16 local banks refinanced 95.9 percent of their maturing debt with fresh foreign borrowing last month, down from 108 percent tallied in October, according to the Financial Supervisory Service (FSS). A bank's short-term refinancing rate measures the percentage of its new borrowing against foreign currency debts that mature in one year or less. http://english.yonhapnews.co.kr/business/2011/12/13/29/0503000000AEN2011...
Fin24.com
Canada on Monday became the first country to announce it would withdraw from the Kyoto protocol on climate change, dealing a symbolic blow to the already troubled global treaty. Environment Minister Peter Kent broke the news on his return from talks in Durban, where countries agreed to extend Kyoto for five years and hammer out a new deal forcing all big polluters for the first time to limit greenhouse gas emissions. Canada, a major energy producer which critics complain is becoming a climate renegade, has long complained Kyoto is unworkable precisely because it excludes so many significant emitters. http://www.fin24.com/Economy/Canada-pulls-out-of-Kyoto-protocol-20111213
Tehrantimes.com