Top Stories

Markets

r2

Markets 23rd February 2012

LHC.Clearnet cuts down by 10pc the additional margin for Irish bonds

LONDON, MADRID | Ireland and Greece appear this week at the opposite ends of the rainbow. Santander credit research team painted Thursday an optimistic picture in its investors’ note based on the news that LHC.Clearnet has cut down by 10pc the additional margin it requires, which was 25pc, for positions in Irish government bonds cleared through its RepoClear service. A more relaxed market environment has also prompted Ireland to increase asset sales to €3…

No Picture

Markets 22nd February 2012

Hungarian bank FHB’s €500mn state aid within EU rules

The European Commission on Wednesday gave the green light to the state rescue operation of Hungarian bank FHB. A recapitalisation of HUF 30 billion (app. €100 million) and a loan under the Hungarian liquidity scheme of approximately HUF 120 billion (approximately €400 million) for the Hungarian bank FHB were put in place in accordance to EU state aid framework, the Commission ruled. After an in-depth investigation, the Commission concluded that the…

dhs

Markets 21st February 2012

Iceland, an example to follow or not? It depends…

By Julia Pastor, in Madrid.- Since last week, Iceland debt is no longer rated as junk bond. Fitch raised the country’s rating by one notch, from BB+ to BBB-. This fact has sparked a significant number of comments about whether the way in which Iceland has managed the economic crisis is a model for other  European countries, particularly the peripherals. It is undeniable that the actions taken by the so far Iceland…

No Picture

Markets 21st February 2012

Spanish Treasury seduces investors, yields fall under 1%

By Tania Suárez, in Madrid | The Spanish Treasury keeps reducing the yield of its public auctions and demand keeps increasing: 5.9 times the offer (almost €15bn). Just a few hours after Europe has given the green light to Greece’s rescue package, the Spanish Treasury has sold €2,5bn –the maximum expected, at 3 and 6 months bills, and thus, it has reached the high end of the target range. Specifically, it…

No Picture

Markets 21st February 2012

Baring increases exposure to peripheral euro debt

LONDON | Andrew Cole, director at Baring Asset Management announced this week that the investment firm has expanded its purchase programme of Italian debt. Baring believes that European Central Bank interventions in the markets, improving liquidity available to European financial entities, have proven to act as a barrier against higher risk trends. Mr Cole said that euro zone economic forecasts look gloomy this year and will possibly remain weak in 2012,…

No Picture

Markets 20th February 2012

FSA fines Santander £1.5mn over poor information, clients didn’t lose out

LONDON | The British financial regulator, the Financial Services Authority (FSA), confirmed Monday that Santander UK was fined £1.5 million for failing to clarify under which circumstances its structured products would be covered by the Financial Services Compensation Scheme (FSCS). The Spanish bank acknowledged that it could have replaced all product literature and training materials more quickly to reflect the FSCS position accurately. The fact that it allowed sales to continue with…

slkd

Markets 18th February 2012

Weekend read | China does help the euro, in Spain: ask their central bank

For months now the Spanish and international press have been announcing an imminent salvage of the battered European economy by the Chinese. What seems to be true is that it is something that is never confirmed, just rumours, no actual, concrete action on the part of China. This is the idea that is floating around the City in London and among the Anglo-Saxon commentators, especially among those who most favour…

stock

Markets 17th February 2012

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…

No Picture

Markets 17th February 2012

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…

No Picture

Markets 17th February 2012

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…