Capital Madrid: “resuming short-sales could increase trade of financials by 16%”

 By Julia Pastor, in Madrid | The Spanish stock market fell Thursday by 2%, specially because of the severe punishment suffered by its listed banks. On Friday, analysts at Link Securities commented that “as good news came from Greece, European financial shares were regaining ground but Spanish banks behaved differently… we see that the only reason that explain this fact is the end of the short- selling veto.” After France and…

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Goldman Boys again in the spotlight for inside trading

NEW YORK | US authorities’ investigation into insider trading at hedge funds is expanding quickly. The last case: a Goldman Sachs IT analyst may have leaked insider information to hedge funds. According to the Wall Street Journal, Henry King, senior technology analyst at the bank in Hong Kong and one of the big fish of his field, well-known for his apologetic forecasts about IT firms, allegedly advised Goldman Sachs clients…

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Standish notes investors tell Greece from Italy, Spain

LONDON | Standish, the Boston-based specialist management firm for investments in fixed income markets, issued a press release regarding the ongoing process in Greece after the country’s parliament passed a new fiscal austerity plan. The current Greek government intends to slash its debt-to-GDP levels to 120% in 10 years. Tom Higgins, global macroeconomic strategist at Standish, believes that the prospects of a Greek default are not yet confirmed, even as euro zone leaders…

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When it comes to money, one can get really FED up

By Juan Pedro Marín Arrese, in Madrid | Markets around the world are flooded with huge loads of fresh cash pumped in by central banks. The balance sheets of central banks have tripled since 2008. And yet monetary supply is lagging behind. Don’t put the blame on banks. Their assets are shrinking as a result of the massive reshuffle in credit exposure undertaken by enterprises and individuals. A grim outlook is…

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Spanish multilateral trading facility platform PAVE brought to a halt

LONDON | PAVE Platform on Wednesday announced the suspension of its plans for an ultra-fast marketplace focusing on Spanish, Portuguese and Latin American listed equities and ETFs. The Spanish equity market is one of the few major markets in Europe where deregulation and increased competition have yet to arrive and the Barcelona-based project’s aim was to bring in competition. The lack of capital resources, though, has forced it to admit defeat,…

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JP Morgan Assets Management to investors over Greece: step back

LONDON | JP Morgan on Monday warned the investor community about Greece’s bailout negotiations being too dominant an influence on their immediate plans. The global asset management firm said that “Though investors will undoubtedly be focused on the negotiations over Greece’s second bailout this week, it may be worthwhile to step back and consider the broader outlook for equity markets for the year.” Since last October, according to JP Morgan…

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Monday’s graphic: 10-year Spain’s bond vs 532 pension funds

MADRID | Pablo Fernández, Javier Aguirreamalloa, Luis Corres Avendaño | In the period between December 2001 and December 2011, returns on the IBEX 35 were at 4.3% while government 10-year bonds’ were at 5.13%. Among the 532 pension funds with 10-year history, only two funds exceeded the return on 10-year sovereign bonds and only three funds exceeded the 4% return. Even worse, 191 funds had negative average return (in December 2011 these funds had 1.7 million participants and assets of €6.246 billion). A reasonable enough question, then: is the favourable fiscal discrimination…

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A British knight for the rating agencies

LONDON | The Investment Management Association sent Friday an unequivocal message to the European Commission: do mess with the risk rating agencies at your peril. In its written submission to the Treasury Select Committee Inquiry into credit rating agencies, the trade body for the UK’s £4 trillion asset management industry IMA defended the independent role of credit rating agencies. The IMA said they must be allowed to act free from political interference….


EU’s Robin Hood taxman better shows his true feathers

LONDON | For all the sovereign chin-ups the British prime minister David Cameron draws in every occasion he finds himself summoned to Brussels and Sarkozy’s financial transaction tax is mentioned, the savings gained in the name of the City of London would amount to just €8 billion. Mr Cameron and his euro sceptic troops, barricaded behind a loud sector of the British society too prone to vent their frustration over…

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Spanish companies welcomed again by the markets and foreign investors

By Tania Suárez, in Madrid | Thanks to the current environment of improved trust and confidence levels, Spanish companies and banks have reopened the primary market. Santander was the first one, followed by Sabadell, BBVA, Banesto and Telefónica. Repsol and Ferrovial joined to this debt issuing, and it is expected that Pescanova will be the next one. Some experts see the European Central Bank’s open bar of liquidity, together with…