Financial markets and the news media have one thing in common: they tend to oscillate rapidly between hype and gloom. Nowhere is this more apparent than in analyses of emerging economies’ prospects.
Today has seen a change of tack by the Bank of England in its operation of UK monetary policy. During 2013 it has found itself operating in a rather hand in glove manner with the UK coalition government. This has been most evident in its approach to the housing market where it would have been hard to argue that there was any evidence of the claimed independence of its policy.
Each week QFINANCE.com brings you some of the biggest news stories from the past seven days (15-21 November) in finance and business – essential reading to keep you up to date with the latest topics.
With J.P. Morgan setting aside $23 billion to cover legal fees and fines, the incentives being provided to future big bank management boards to get their act together just keep on growing. One can debate whether the cost of punitive actions has yet reached a sufficient level of severity - but it is undeniable that the scale of fines being imposed is heading in the right direction.
International investment agreements are once again in the news. The United States is trying to impose a strong investment pact within the two big so-called “partnership” agreements, one bridging the Atlantic, the other the Pacific, that are now being negotiated. But there is growing opposition to such moves.
If you want to value the derivatives in your portfolio accurately, then you’d love to predict the forthcoming volatility. Right? Since you can’t, you’ll make do with either implied or historical volatility. Still, what you’d really like, the “holy grail” of the knights of valuation, is to know what volatility will be during the life of the instrument.
China has a number of free trade zones (FTZ) already, but the one planned for the country's commercial hub in Shanghai is shaping up to be unique. There may be some manufacturing, but what Shanghai's FTZ is all about is financial services and turning Shanghai into a rival to the City of London - well, not overnight, maybe - when it comes to FX trading.
Each week QFINANCE.com brings you some of the biggest news stories from the past five days (October 11-17) in finance and business – essential reading to keep you up to date with the latest topics.
It's a topsy turvey world when bad news is good news for emerging markets (EM). The logical expectation for the performance of EM in the face of the US government shutdown (a piece of political foolishness of mammoth proportions) would be that they would plunge as the US government grinding to a halt roils world markets. Instead they bounced, with two of the worst performers, Indonesia and the Philippines seeing the largest upward spike. Why?
After a dearth of flotations and new issues, suddenly the market has barked back into life. This is generally good news as it is a sign that some investor confidence is returning to the markets.