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Trading Now

Monday, September 21, 2009


S&P puts CDOs on negative watch after updating criteria
Standard & Poor's announced that it updated its criteria for collateralized debt obligations, ending uncertainty in the structured-credit market, after a similar move by Moody's Investors Service in February. The update prompted S&P to put 4,790 CDO tranches on a negative credit watch. The credit rating agency expects mass downgrades. EuroWeek (18 Sep.)

*Goldman Hedge Fund buying Volvo? Now those partners can have gold plated healthcare and swedish meatballs.
Goldman fund invests in Geely Automobile, source says
Goldman Sachs Capital Partners is investing about $250 million in China's Geely Automobile Holdings, freeing up capital for parent company Geely Holding Group to make its expected bid for Ford Motor's Volvo unit, a source said. The Goldman fund's investment is in convertible bonds and warrants. The Wall Street Journal (21 Sep.)

Asian markets mixed on concerns about Chinese IPOs
Markets were mixed Monday in Asia because investors were concerned about additional listings on Chinese exchanges, while markets were closed in Japan, Singapore and India for holidays. Australia's S&P/ASX 200, South Korea's Kospi Composite and Taiwan's Taiex all slipped 0.3%. China's Shanghai Composite inched up 0.2%, Hong Kong's Hang Seng Index fell 0.7% and New Zealand's NZX 50 closed flat. The Wall Street Journal (21 Sep.)

Santander looks to raise $7.35B with Brazilian unit's IPO
Spain's Banco Santander said it is seeking to raise about $7.35 billion through the initial public offering of its Brazilian unit, Banco Santander Brazil. The cash will be used to open 600 branches in Brazil in the next four years. The Wall Street Journal (21 Sep.)

Appetite for Treasuries still strong among foreign investors
Foreign investors purchased 43.1% of the $1.41 trillion in notes and bonds sold by the U.S. Treasury this year, compared with 27.1% of the $527 billion issued during the same period last year, the Treasury said. China added $24.1 billion in July, raising its stake in U.S. government debt to $800.5 billion. Nations that hold large sums in dollars -- China has more than $1 trillion in reserves -- are buying more U.S. Treasuries as a hedge against the currency's decline. Bloomberg (20 Sep.)

Equity derivatives begin to make comeback in Asia
Equity derivatives in Asia have faced a number of challenges in the past couple of years, including deteriorating share markets and de facto regulatory bans on certain structured products in Hong Kong, South Korea, Taiwan and Singapore. Equity derivatives are starting to make a comeback, but the industry has undergone fundamental changes. IFR Asia (19 Sep.)

*love that stimulus baby
Chinese government economist forecasts 8% growth this year
China's economy will manage 8% growth by the end of this year despite challenges, said Yao Jingyuan, chief economist with the National Bureau of Statistics. He said the country is recovering faster than other major economies. The Chinese economy grew 7.9% in the second quarter compared with the same period last year, achieved through fiscal and economic-stimulus policies and loose monetary policy started in November. China Daily (Beijing)/Xinhua News Agency (19 Sep.)

*its about time she does something right..
Merkel's tax-cut proposal applauded by German businesses
Executives at some of Germany's industrial giants are supporting German Chancellor Angela Merkel's campaign promise of an income tax cut "for every taxpayer." Merkel is battling a sudden jump in the popularity of opponent Frank-Walter Steinmeier, whose party proposed a higher tax rate for the wealthiest taxpayers and is receptive to increasing value-added tax. Financial Times (tiered subscription model) (20 Sep.)

*sound familiar?
U.K. house prices edge up, but market is lackluster
U.K. home prices rose 0.6% this month, according to real estate agency Rightmove, though mortgage lenders are still cautious. The Council for Mortgage Lenders said mortgage lending dropped one-third last month compared with August 2008. The lackluster housing market suggests recovery from recession is not imminent in the country. The Independent (London) (21 Sep.)

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