This week both RSA, the leading global insurer, and Heineken, the international beer and cider company, announced their adoption of PensionsFirst’s award-winning risk management platform, PFaroe to manage their defined benefit pension risk exposures. With the addition of these two names, PFaroe is now being used by more than 30 pension plans representing over £80bn of pension liabilities – a story covered by Professional Pensions, Employee Benefits and Insurance ERM following Moorgate’s outreach.
In his most recent blog for FTSE Global Markets, Patrick Artus, chief global economist at Natixis, is concerned that central banks in the US, the UK and the euro zone are disregarding the effects of their highly expansionary monetary policies. While such strategies aim to stimulate growth, Artus points to similar, unhelpful central bank behaviour between 2000 and 2007, right up to the onset of the global financial crisis.
To read the full article, please click here
In the FTSE Global Markets blog published last week, Artus draws attention to key “trend breaks” influencing the health of today’s global markets, such as reindustrialisation in the US, slowdowns in growth and global trade, and a recession in the euro zone. He sought to determine where investors should be looking in light of these trends, and indeed, which areas to best avoid.
To read the full article, please click here
Kamel Alzarka, chairman and founder of Falcon Group, writes to the FT in response to an article containing Lord Turners comments on the “good and bad cholesterol” of shadow banks (November 19th).
To read Lord Turner’s article, please click here
To read Kamel Alzarka’s response, please click here
Ireland seems to be on the road to economic recovery, with falling government bond yields and credit ratings agencies raising their outlook for the economy. But in a guest commentary for Investment Europe, Rene Defossez, fixed-income strategist at Natixis, argues that these developments must be put into perspective. Austerity measures continue to leave imprints on the economy, and the country remains too closely tied to euro area risk. Before investors’ confidence can fully return, there needs to be further – and noticeable – improvements made.
To read the full article, please click here.
Xi Jinping has been confirmed as the man to lead China for the next decade. While it remains to be seen how increasing consumer demand (Chinese demographics and infrastructure expenditure have driven much of its GDP) will affect imports, the change of leadership will impact both trade and trade finance in the country. Speaking to Trade & Forfaiting Review, Anthony Palmer, Chief Executive of BPL Global in Asia, suggests that appointment of Xi Jinping is in keeping with previous leadership appointments in China in recent years which emphasise technocratic managerial abilities the kind of which are needed to supervise China’s continuing rise as a trading nation and global economic powerhouse. He goes on to discuss the region’s private credit and political risk insurance market, which remains fully open for both investments in and trade with China.
To view the full article please click here
Yann Le Pallec, Managing Director, EMEA Ratings, Standard and Poors argues for the importance of credit ratings agencies, and explains both the benefits and the potential pitfalls that their work can bring for investors, in this month’s edition of World Finance.
To read the full article please click here
In a commentary piece for Cash and Trade, Mark Fenner, Head of Developing Markets EMEA at BNY Mellon Treasury Services, approaches the topic of Basel III to discuss its potential impact on banks and international trade. In particular, he writes of how the GCC (Gulf Cooperation Council) countries will meet the requirements of the regulation, due to be implemented in January 2013. Unlike banks in the West, he writes, those in the GCC have emerged from the 2008 crisis relatively unscathed and seem better placed to meet Basel III’s terms – although this by no way means that it will be a worry-free adjustment.
To read the full article, please click here (please note, this link lies behind a paywall)
As it is now mandatory for corporates to migrate to SEPA (the single euro payments area) by 1 February 2014, Deutsche Bank has published an in-depth supplement for those who want to make the switch as seamless as possible. The publication, titled “The ultimate guide to SEPA migration”, was written by Michael Spiegel, Deutsche Bank’s Global Head of Trade Finance and Cash Management Corporates, and contains an evaluation of the main issues and corporate concerns that have emerged from industry dialogue, as well as a specific explanation of how best to approach its implementation.
To read the guide, please click here
FX-MM recently brought together banking heads from treasury, trading and technology for the magazine’s Transaction Banking Debate. Peter Hazou, BNY Mellon’s Head of Market Development for Treasury Services, was asked to participate. In the ensuing article, he gives his views on the current trends hitting these sectors – including how the euro zone sovereign debt crisis has impacted transaction banking, and what challenges lie ahead.
To read the full article, please click here (please note, free log-in to FX-MM is required to view the full article)
Over the past week, Natixis’ chief economist, Patrick Artus, posted three blogs on FTSE Global Markets.
The first, “For how long will the United States be able to prevent the dollar from rising” questions what limit the Federal Reserve will set on liquidity creation. This is in light of the dollar possibly appreciating as the US becomes increasingly attractive to investors – thanks to its reindustrialisation, growing energy independence and shrinking external deficit.
The following post saw Artus ask “Can monetary policy replace federalism?” in which he considered the two and applied them to the euro zone, arguing that although federalism will be incredibly difficult to implement in the currency area, the ECB’s monetary policies can only ever be a temporary substitute for it.
And finally, the argument that “Long-term policies give European countries more resilience” was evaluated in his most recent post. Artus compares the policies of those European countries that have best weathered the euro zone crisis to those that continue to suffer from its effects – in correlation to three characteristics: fiscal policy, labour markets, and sophistication of the economy.