An
interesting report by McKinsey on how far we have come on deleveraging.
The
deleveraging process is in its early stages in most countries. Total debt has
actually grown across the world’s ten largest mature economies since the
2008–09 financial crisis, due mainly to rising government debt. Moreover, the
ratio of total debt to GDP has declined in only three countries in our sample:
the United States, South Korea, and Australia
There
were a couple of comments on last weeks photo of the start of the Warriewood to
Mona Vale swim.
I
would just like to re-assure everyone that:
a)
The week-end weather here is just as poorly calibrated as in Europe. Saturdee
in bucketed down most of the day and Sundee was greeted with light showers.
Monday was of course, glorious.
b)
I am more likely to be the guy getting dumped in the wave than the kewl dude
riding the wave.
The
swim itself went well. The organisers claimed the conditions were tough but I thought
they were OK. Mind you, at one stage I was just swimming along (as one does!)
and a huge swell just picked me up and flipped me onto my back. Doing freestyle
on your back just does not work! I came 24/42 in age, 204/371 in gender and
277/538 overall. A solid average performance at 34.03 mins (12mins slower than
the fastest and 12mins faster than the slowest!).
This
week-end...it’s time again for The Big Swim.
(based
on the forecast I think it’s going to be a long big swim).
..and
for those looking for an insight into Australia Day...Sam’s the man.
I
recommend his version of what every “Barbie” girl wants...
Last
week I got pulled up on a couple of rants.
1.
The meeja (or Media for those un-Australians).
My
rant was more against sloppy media (inaccuracies and misleading) rather than
the media itself. I fully support the importance of the freedom of the press.
2.
On interoperability I ranted about disclosure and vested interests. E.g.
X-Clear and UBS 17% ownership, EuroCCP and DTCC direct subsidy and LCH equity
clear cross subsidy. I did not disclose that my day job is for ABN and ABN own
78% of EMCF.
You
can see information about the EMCF ‘carve out’ from ABN on page 8 of the annual
report and full details of ownership on page 15 of the annual report. All
available on the EMCF web site at: http://www.emcf.com/upload/uploads/Jaarverslag%20EMCF%202010.pdf.
I don’t have any personal responsibilities or capacities with or for EMCF.
(For
good orders sake, I must re-iterate any views are my own and not necessarily
those of my employer blah de blah...)
WFE
report including transaction sizes released.
Financial
news identifies falling brokerage revenues.
BAML
to aim for 8byn savings. That is simply an enormous figure.
Tabb
comments on the changing trend of execution patterns and how ‘intra-day’
liquidity is also shifting.
Reformed
broker is a refreshing renewal story.
And
this site was also recommended: http://www.if5.com/LiquidMetrix/Battlemap
And
as for Australia Day....Ahhh, the good old Aerogaurd aftershave...maybe that’s
why Aussie chicks prefer those foreign blokes?
Have
a great week-end all.
Swim
forecast for me is 1.1 meter swell, 17 knot wind and rain.
The
rain is a worry as I’m informed sharks only bite wet people.
S
PLATFORMS
2011
WFE Market Highlights
Average
size of transaction USD 8 700 (+1.8% )
***
There is a nice piccie of this on page 3 but it doesn’t lend itself to cut and
paste.
SWISS
Bank Stakes in SIX Group
Six Group Equity Structure. p47.
The shareholdings are buried in
the Financial reports, note 10, p31.
UBS 17.3%, CS 12.8%
BETa, the European
Multilateral Trading Facility (MTF) launched by the Budapest Stock Exchange
(BSE)
BETa uses the BSE equity trading platform, and offers
trading in foreign shares, with market makers supplying continuous liquidity.
The BETa product range, initially restricted to Finnish, French, German and
Spanish shares, is expected to be broadened in early 2012, with additional
products to become available for trading.
NSX and Paritech Announce Strategic Partnership
Market Model Typology (MMT)
A broad spectrum of the industry (exchanges, BATS Chi-X
Europe, Markit Boat and the main data vendors: Thomson Reuters, Bloomberg,
Fidessa, NYSE Technologies and SIX Telekurs) have been working for most of this
year to achieve a practical and common solution for standards on post-trade
equity data.
Omega ATS Enhances Offering to Boost Appeal
Omega ATS is looking to offer a faster matching engine with more market data in a bid to bolster its overall appeal to investors and further its pursuit to be Canada’s speediest ATS
Omega ATS is looking to offer a faster matching engine with more market data in a bid to bolster its overall appeal to investors and further its pursuit to be Canada’s speediest ATS
CLEARING
I
take some hope from the EC Expert Group on Market Infrastructures, (see page
31)
But
even here, I see it is either EACH (of questionable commercial leverage) or
EMIR (long lead times) that has taken up the mantle, or even worse, does the
industry have to wait for MiFIR? At one stage, the industry had the tools
within their grasp.
***
At the end of the day my sentiment is for a sustainable business model, for
Europe, that stands on its own merits.
EuroCCP gets fresh capital injection -
FT.com
5 Oct 2011 – EuroCCP,
the European cash equities clearing house, received a cash injection of nearly €5m ($6.7m) in April from its US
parent The ...
DTCC
makes €30m in capital
injections to Euro
CCP - FT.com
7 Oct 2010 – Euro
CCP
has received four separate capital
injections this year totalling nearly €30m from the Depository
Trust & Clearing Corporation, its US ...
POLICY
IMF’s Lagarde on 2012
In
the lead up to the World Economic Forum in Davos, Switzerland the Managing
Director of the International Monetary Fund, Christine Lagarde, gave a speech
in Berlin yesterday in which she discussed “the economic challenges in 2012,
and a possible policy path for global cooperation to restore confidence and
growth”
....The
original speech is available here, but I prefer the above link for the added insights.
Global Challenges in 2012
By
Christine Lagarde, Managing Director, International Monetary Fund
http://www.imf.org/external/np/speeches/2012/012312.htm
http://www.imf.org/external/np/speeches/2012/012312.htm
In
an update of its world economic outlook, the IMF said it expects global
output to grow by 3.3% in 2012, down from 3.8% in 2011 and from a September
forecast of 4%.
the
IMF said that despite a substantial downward revision of three quarters of a
percentage point, "developing Asia is still projected to grow most rapidly
at 7.5% on average in 2012–13."
China is now expected to see growth slow
from 9.2% in 2011 to 8.2% in 2012, re-accelerating to 8.8% in 2013.
The IMF previously forecast growth of 9% in
2012 and 9.5% in 2013.
China grew at an annual 9.2% in 2011,
according to figures issued last week, with December quarter growth hitting
8.9%.
(That's good news for Australia and its
surprising that many commentators in Australian papers missed that news of
failed to appreciate their meaning)
7
page report here:
12-08MR ASIC welcomes international endorsement of
Australia’s regulatory regime on credit rating agencies
ASIC has welcomed the announcement by the European Securities and Markets Authority (ESMA) that it has endorsed Australia’s regulatory regime on credit rating agencies (CRAs).
ASIC has welcomed the announcement by the European Securities and Markets Authority (ESMA) that it has endorsed Australia’s regulatory regime on credit rating agencies (CRAs).
ASIC
EXTENDS CONSULTATION PERIOD
The Australian Securities & Investment
Commission (ASIC) has given market participants an extra three weeks to respond
to its second-phase consultation paper on equity market structure following a
large amount of input from the industry.
The deadline for feedback on CP 168, issued
20 October last year, has been extended from 20 January to 20 February.
PARTICIPANTS
FINANCIAL NEWS: The Great Brokerage Shake-out
In
what is likely to become a common theme, two of the world’s largest global flow
dealers, Citigroup and UBS, announced plans to launch new client platforms this
year, CitiVelocity2.0 and UBS Neo respectively.
The platforms are designed to bring together multi-asset electronic trading, research and analytics on to one platform, in a bid to leverage technology across the businesses and reduce spend.
Brokers’ equity commissions, European major markets, long-only clients
2008 €5.317bn
2009 €3.044bn
2010 €3.359bn
The platforms are designed to bring together multi-asset electronic trading, research and analytics on to one platform, in a bid to leverage technology across the businesses and reduce spend.
Brokers’ equity commissions, European major markets, long-only clients
2008 €5.317bn
2009 €3.044bn
2010 €3.359bn
BofA aims for annual savings of up to $8 billion
Bank of America has targeted expense cuts of $5 billion from its back-office and retail operations, and might lower annual costs $3 billion more under CEO Brian T. Moynihan's efficiency plan. "What is the right fixed-cost structure given what we see in the market conditions and opportunities?" Moynihan said. "We need that business to come back or we’ve got to do more in expenses."
Bank of America has targeted expense cuts of $5 billion from its back-office and retail operations, and might lower annual costs $3 billion more under CEO Brian T. Moynihan's efficiency plan. "What is the right fixed-cost structure given what we see in the market conditions and opportunities?" Moynihan said. "We need that business to come back or we’ve got to do more in expenses."
STUFF
TABB FORUM: The 60-Minute Market
Traditionally, volume has always been weighted evenly toward
the beginning and end of the trading day. Morning flow was comprised of retail
orders entered the night before while closing flow was index-driven and tied to
a benchmark. Volume charts looked like a smile with the ends curved higher than
the mid-day flow. Today, that smile has turned into a sort of demented,
Jokeresque smile with the right side at eye level and the left side flat.
So why is as much as 20 percent of the volume transpiring in
just 1.2 percent of the trading day? What’s wrong with the continuous market
that forces so much of the trading volume to transpire at the close?
Dutch show how not to run housing
policy
The Reformed Broker
So for new or smaller investors the name of the game is to stay in,
do smart things while you're in and avoid blowing up.
Sydney Salary Guide
Report
here:
From
Pete’s blog:
"INEPTOCRACY"
Ineptocracy (in-ep-toc'-ra-cy) - A system of government where the least capable to lead are elected by the least capable of producing,
and where the members of society least likely to sustain themselves or succeed are rewarded with goods and services paid for by the
confiscated wealth of a diminishing number of producers.
You know you're Australian if ...Ineptocracy (in-ep-toc'-ra-cy) - A system of government where the least capable to lead are elected by the least capable of producing,
and where the members of society least likely to sustain themselves or succeed are rewarded with goods and services paid for by the
confiscated wealth of a diminishing number of producers.
* You believe that stubbies can be either drunk or worn.
* You've made a bong out of your garden hose rather than use it for something illegal such as watering the garden.
* You understand that the phrase 'a group of women wearing black thongs' refers to footwear and may be less alluring than it sounds.
* You believe it makes perfect sense for a nation to decorate its highways with large fibreglass bananas, prawns and sheep.
* You pronounce Melbourne as 'Mel-bin'.
* You think 'Woolloomooloo' is a perfectly reasonable name for a place.
* You understand that 'Wagga Wagga' can be abbreviated to 'Wagga' but 'Woy Woy' can't be called 'Woy'.
* You know that there is a universal place called "woop woop" located in the middle of nowhere...no matter where you actually are.
* You're secretly proud of our killer wildlife.
* You believe that cooked-down axle grease makes a good breakfast spread. You've also squeezed it through Vita Wheats to make little Vegemite worms.
* You believe all famous Kiwis are actually Australian, until they stuff up, at which point they again become Kiwis.
* Beetroot with your Hamburger... Of course.
* You know that certain words must, by law, be shouted out during any rendition of the Angels' song 'Am I Ever Gonna See Your Face Again' ....and "Living next door to Alice".
* You believe that the more you shorten someone's name the more you like them.
* You know how to abbreviate every word, all of which usually end in -o: arvo, combo, garbo, kero, lezzo, metho, milko, muso, rego, servo, smoko, speedo, righto, goodo etc.
* You've only ever used the words - tops, ripper, sick, mad, rad, sweet - to mean good. And then you place 'bloody' in front of it when you really mean it.
* You understand that 'excuse me' can sound rude, While 'scuse me' is always polite.
* You say 'no worries' quite often, whether you realise it or not.
* You believe the 'l' in the word 'Australia' is optional.
* You know that some people pronounce Australia like "Straya" and that's ok.
* You believe that the confectionery known as the Wagon Wheel has become smaller with every passing year.
* You wear ugg boots outside the house.
* You know what it's like to swallow a fly, on occasion via your nose.
* You know it's not summer until the steering wheel is too hot to handle and a seat belt buckle becomes a pretty good branding iron.
* Your biggest family argument over the summer concerned the rules for beach cricket.
* You still think of Kylie as 'that girl off Neighbours'.
* When working on a bar, you understand male customers will feel the need to offer an excuse whenever they order low-alcohol beer.
* You have some time in your life slept with Aeroguard on in the summer. Maybe even as perfume.
* You own a Bond's chesty. In several different colours.
