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Exchanges also face financial reform
December 20, 2010--Exchanges like to boast that, while they are an unusually visible part of the financial markets, they had nothing to do with the financial crisis of 2008. Trading of stocks, options and futures carried on throughout the worst moments of the crisis, with prices being quoted continuously and deals done.
However, exchanges are not unaffected by the sweeping changes to the financial landscape as a result of the regulatory overhaul of financial services – the biggest since since the US stock market crash of 1929.
Investors buy into haven of the dollar
December 20, 2010--The dollar was in demand as investors sought havens from the eurozone debt crisis while rising geopolitical tensions in the Korean peninsula weighed on Asian currencies.
Sentiment for the euro remained fragile after Moody’s downgrade for Ireland and its warning on Spain last week. “The lack of any substantive plan to bulk up the European financial stability facility or provide an alternative crisis management system has kept the market negative on the euro as the downgrades keep rolling in from Moody’s,” said Adrian Schmidt, of Lloyds Bank Corporate Markets.
Sugar and coffee hit multi-year highs
December 20, 2010--Sugar and coffee prices hit multi-year highs on Monday, further boosting food inflation concerns as supply problems mounted after a string of lower-than-expected harvests due to unfavourable weather, analysts said.
The surge in sugar and coffee prices comes as other agricultural commodities – from corn and wheat to soyabean and barley – trade near a two-year high.
Weathering the Global Storm: The Benefits of Monetary Policy Reform in the LA5 Countries-IMF Working paper
December 17, 2010--This paper highlights that central banks from Brazil, Chile, Colombia, Mexico, and Peru (the LA5 countries) reaped the benefits of what they sowed in successfully weathering the global crisis. The adoption of far-reaching institutional, policy, and operational reforms during the last two decades enabled central banks to build credibility about their commitment with the objective of price stability.
Thus, when the 2007 - 08 supply shock and the financial crisis hit the world, the LA5 central banks reacted swiftly and effectively based on a flexible policy framework and with the support of strong macroeconomic and financial foundations. Building on the experience of the LA5 central banks and complementing with recommendations from the IMF’s technical advice, the paper provides several suggestions for countries seeking to strengthen the effectiveness of monetary policy.
NASDAQ OMX Prices $370 Million Senior Notes Offering
December 17, 2010--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that it priced an underwritten public offering of $370 million aggregate principal amount of 5.250% Senior Notes due 2018. The offering is expected to close on December 21, 2010, subject to customary closing conditions.
NASDAQ OMX expects to use the net proceeds from the notes offering to repay senior unsecured indebtedness that it expects to incur to finance the purchase of approximately 22.8 million shares of NASDAQ OMX's common stock, $0.01 par value per share, from Borse Dubai Limited.
J.P. Morgan Securities LLC is the sole bookrunner of the notes offering.
The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission. A prospectus supplement and accompanying prospectus describing the terms of this offering will be filed with the SEC. Copies of the prospectus supplement and the accompanying base prospectus may be obtained at no cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, J.P. Morgan Securities LLC can arrange to send you the prospectus if you request it by calling J.P. Morgan Securities LLC at the following collect number: 1-212-834-4533.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Hedge Funds Raise Bets on Commodity Rally to Highest Level in Four Years
December 16, 2010--Hedge funds and large speculators increased their bets on a commodity rally to the highest level since at least 2006 as copper and gold gained to records.
An index tracking speculative positions in 20 commodity futures in the U.S. advanced 8.4 percent from the week before to 1.54 million contracts as of Dec. 7, the highest level since at least February 2006, Commodity Futures Trading Commission data show. The gauge, compiled by Bloomberg, is derived by taking short positions, or bets on lower prices, from long positions.
Asset Recovery Handbook 2010
Creative International Cooperation Can Help Developing Countries Recover Stolen Assets
November 16, 2010--Developing countries lose between $20 billion and $40 billion each year to bribery, embezzlement, and other corrupt practices. Over the past 15 years only $5 billion has been recovered and returned. A new handbook seeks to help close this gap.
The Asset Recovery Handbook, released today by the Stolen Asset Recovery (StAR) Initiative of the World Bank Group and the United Nations Office on Drugs and Crime, provides practitioners with a how-to guide for recovering stolen assets. The process is complex, requiring coordination between many public agencies in multiple jurisdictions. Practitioners must exchange sensitive information with partners in other countries to trace stolen funds and gather evidence. They must be familiar with a wide range of legal tools and procedures for freezing, seizing, and repatriating stolen funds. And they must be able to navigate the legal systems of their own country and of partner countries.
“The process can be overwhelming for even the most experienced practitioners. It is exceptionally difficult for those working in the context of failed states, widespread corruption, or limited resources,” said Jean Pierre Brun, World Bank Senior Financial Sector Specialist and lead author of the handbook. “A practical guide can help these states navigate the process, anticipate challenges, and determine and implement effective strategies.”
The handbook, prepared by an international team of experts, draws on the experience of a wide range of countries and legal traditions. Designed as a quick reference, it describes approaches to recovering proceeds of corruption located in foreign jurisdictions, identifies the difficulties that practitioners are likely to encounter, suggests strategic and tactical options to address the challenges, and introduces good practices. It also provides reference tools, case studies, and practical resources such as sample intelligence reports, applications for court orders, and mutual legal assistance requests.
“In these tough economic times, and with corruption such a drain on development, it is vital for countries to have the resources they need to battle this scourge. The handbook could also be helpful to those making policy decisions about legislation and management of resources devoted to fighting corruption,” said Ngozi Okonjo-Iweala, Managing Director of the World Bank. “The World Bank Group and UNODC will use it to provide technical assistance and promote capacity building in countries interested in the StAR Initiative,” she added.
view the Asset Recovery Handbook 2010
NASDAQ OMX Announces Proposed Senior Notes Offerin
December 16, 2010--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that it plans to commence a public offering of $370 million of senior notes pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission. NASDAQ OMX intends to use the net proceeds from the notes offering to purchase approximately 22.8 million shares of NASDAQ OMX's common stock, $0.01 par value per share, from Borse Dubai Limited.
The exact terms and timing of the senior notes offering will depend upon market conditions and other factors.
J.P. Morgan Securities LLC will act as sole bookrunner of the notes offering.
The offering is being made solely by means of a prospectus supplement and accompanying prospectus, which have been or will be filed with the SEC. Before investing, the prospectus supplement and accompanying prospectus should be read, as well as other documents the company has filed or will file with the SEC for more complete information about NASDAQ OMX and this offering. These documents are available for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, J.P. Morgan Securities LLC can arrange to send you the prospectus if you request it by calling J.P. Morgan Securities LLC at the following collect number: 1-212-834-4533.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
NASDAQ OMX to Repurchase 22.78 Million Shares
December 16, 2010--The NASDAQ OMX Group, Inc. ("NASDAQ OMX®") (Nasdaq:NDAQ) has agreed to repurchase from Borse Dubai approximately 22.78 million shares of common stock for $21.82 per share for an aggregate purchase price of approximately $497 million, representing approximately 11.5% of its total outstanding shares. The transaction completes, expands and accelerates the purchase by NASDAQ OMX of its shares pursuant to its previously announced share repurchase plan.
Borse Dubai also has agreed to sell in a private transaction 8 million shares of common stock of NASDAQ OMX to Nomura International PLC as the buyer under the NASDAQ OMX Sale agreement.
Nomura agreed, under a forward sale agreement, to sell 8 million shares of NASDAQ OMX common stock to Investor AB, subject to regulatory approval. To the extent the agreement is physically settled, Investor AB's ownership of NASDAQ OMX shares of common stock will increase to 17,400,142 shares.
The sale by Borse Dubai of slightly more than half of its investment in NASDAQ OMX (30.78 million shares) will raise substantial proceeds to meet Borse Dubai's debt obligations maturing in February 2011.
NASDAQ OMX intends to raise $370 million in the bond market to finance the transaction. NASDAQ OMX management is committed to maintaining its investment grade status with both S&P and Moody's.
Bob Greifeld, Chief Executive Officer of NASDAQ OMX, said: "Our repurchase of shares from Borse Dubai is an excellent transaction for both parties. It allows us to be opportunistic and accelerate our share repurchase plans while delivering significant accretion to our shareholders. The financing gives us sufficient capacity to fund the buyback, while maintaining strategic and operational flexibility. After the transaction, Borse Dubai will continue to hold a significant investment in NASDAQ OMX, demonstrating its desire to remain a committed long-term shareholder. We are pleased by the confidence Investor AB has shown in NASDAQ OMX by increasing its holding to become a leading and engaged shareholder."
Banks meet new minimum capital standards
December 16, 2010--Most of the world’s biggest banks would be safely above new minimum capital requirements but many would face restrictions on their ability to pay bonuses and dividends if new rules were applied immediately, according to the industry’s global regulator.
The Basel Committee on Banking Supervision said the top 94 banks would have a combined core tier one capital ratio, a key measure of bank strength, of 5.7 per cent, under the new banking rules.