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Greetings Everyone, and Welcome to Thursday!
We look a bit ahead today and tomorrow with some significant Data Point Releases that may give The Queen some Impetus to really break it’s larger Time-Cycle Areas of Consolidation.
Retail Sales out of The U.K. brings the spotlight to The Queen, as Consensus calls for a slight Build in Retail Sales… despite [...]
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A new code on rewarding bankers will not restrict payoutsNOBODY trembled when the Financial Services Authority (FSA), Britain’s financial watchdog, unveiled a new remuneration code for banks on August 12th. Rather than prescribing how big banks should mend their executives’ pay, it merely suggested some remedies. At issue are the perverse incentives which led some bankers to pitch their banks, and the entire financial system, into peril. Those who suffered were not usually these overpaid employees but shareholders and taxpayers—and customers, who may have been ripped off alon
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g the way.Anyone hoping for a radical change will be disappointed—though the City will be relieved. The FSA’s initial draft in March contained threats to limit the share of bonuses that can be taken in cash, forcing at least two-thirds of the payout to be deferred and depend on future performance. Those threats have turned into “recommendations” that can be ducked, provided a bank can explain its behaviour. The FSA’s only real sanction will be to require a bank to put up more capital if its remuneration policy is judged over-risky. But how would the riskiness be calculated by anyone outside the bank? ...
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Greetings again, Everyone!
The positive importance of The U.K. Retails Sales Data is showing “slight” sign of Stabilization as Actuals of a 1.3% rise clipped the 0.3% Consensus with ease. While this translated into a nice Break of The Queen and Her Major Cross into Appreciation… we would really need to see stronger and stronger Purchasing “Evidence” [...]
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Greetings Everyone, and Welcome to a New Week!
I come to you today with heartfelt Appreciation for all of the months of support on The Blog, as , regrettably, I have decided to discontinue my communications in this manner with keeping The Blog active here on FXstreet.
My own personal Work has been leading in other directions [...]
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Ken Moelis believes that small is beautiful when it comes to investment bankingTHE first investment bank where Ken Moelis worked—Drexel, Burnham, Lambert—failed spectacularly. Another former employer, Donaldson, Lufkin & Jenrette (DLJ), was bought by a bigger rival. The most recent, UBS, is now on government life-support. During his 25-year career in investment banking, in short, Mr Moelis has seen it all. Over that period investment banks have evolved from staid partnerships into huge, publicly traded conglomerates before stumbling, and in some cases collapsing, last year. But
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Mr Moelis has survived the upheaval, and come up with some ideas about how investment banking could be improved along the way. He is now trying to put them into practice at the bank he founded in 2007, Moelis & Company.Mr Moelis started out in the Beverly Hills office of Drexel, where he worked with Michael Milken, the “junk-bond king” who was later jailed for fraud. They raised money for cable-television channels and mega-casinos in Las Vegas—both innovative new businesses at the time—with fabled entrepreneurs such as Ted Turner and Steve Wynn. Mr Milken’s belief that a small bank with great ideas could shake the establishment made an impression on the young Mr Moelis, despite Drexel’s subsequent collapse. Over the course of his career, he says, he concluded that banking conglomerates were too unwieldy to look after clients or employees properly—one reason why he left DLJ in 2000 when it merged with Credit Suisse. Nonetheless, a few months later Mr Moelis agreed to join UBS, another big Swiss bank, to build up its American investment-banking unit. And build he did. It quickly became a leader in almost every branch of the business, from mergers and acquisitions (M&A) to share offerings. ...
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Japan eases the rules for banks and their securities affiliatesREGULATORS around the world are contemplating higher walls between commercial banks and their investment-banking divisions. In Japan the opposite is happening. Last month the country’s Financial Services Agency (FSA) dramatically eased the regulations on how banks may interact with their securities arms, with sweeping implications for Japan’s financial markets. The old system laid huge burdens on financial groups. It prevented bankers from suggesting services that were provided by the same firm but housed in a different
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unit. Foreign banks, lacking the same holding-company structures as domestic rivals, were the worst hit. Until recently, grouses an employee of a big bank, its Japanese unit generated more paperwork than the rest of its operations across Asia combined. Domestic firms also suffered. And a system designed to minimise risk increased it, says an executive. “If the country manager asks the head of the securities unit, ‘How’s business?’, he can’t say because he is in a different legal entity.” ...
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In the first of an occasional series on the reform of finance, we look at the European Union’s proposalsGIVEN its history of financial meltdown and subsequent recovery, Sweden, which assumed the presidency of the European Union on July 1st, is the ideal country to orchestrate the reform of Europe’s financial landscape. Its reputation for levelheadedness will come in handy too. The EU remains riven by two deep divides on the regulation of finance. The first is an ideological one over the degree of freedom that should be afforded to markets. It pits a weakened and distracted Britain,
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whose appeal as a financial centre in less troubled times was enhanced by its “light-touch” regulation, against countries such as France and Germany, which feel their long-standing distrust of freewheeling markets has been vindicated. “There is a large body of people who say that the Anglo-Saxon model has failed,” says a person involved in the new regulations. “Now they see the chance to bury it.” Tougher regulations may also peg London back in its rivalry with other European centres such as Frankfurt or Paris. ...
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Greetings, Everyone and Welcome to Monday!
We have a somewhat-”rushed” Week with the U.S. 4th of July Independence Day on Saturday, which brings ADP, NFP, Jobless Claims and such a day earlier than usual as U.S. Markets will be closed for The Holiday.
The ECB holds the Majority of Focus this Week outside of the U.S. Data, where [...]
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Greetings again, Everyone!
Dollar and Yen Strength slowly grind away at most Majors and Crosses, despite The Majors still being largely Range-Bound and in Consolidation from the IntraDay Views.
The Asian Equity Markets are down as The Nikkei closes down 225 Points, and The Euro remains under Pressure ahead of The ECB on Thursday. This may begin [...]
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Greetings once again, Everyone!
The USD/CAD and Crude Oil work through a rather “active” Day… considering the somewhat-”Tepid” movements of most Majors across The Markets.
Crude rallies back on an IntraDay View as The Loonie Pair follows suit in “normal” Inverse Correlation.
Here are The Hourly Views, so give them a Click for Levels.
Commentary is above, as always and [...]