Tuesday, May 6, 2014

Fw: Amazon teams up with Twitter

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From: "CFA Institute Financial NewsBrief" <cfa@smartbrief.com>
Date: Tue, 6 May 2014 05:03:04 -0500 (CDT)
To: <mainandwall@yahoo.com>
Subject: Amazon teams up with Twitter

Global banks reportedly seek role in Alibaba's IPO | Read CFA Institute's analysis of the Alibaba IPO | France rejects GE's bid for Alstom assets
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06 May 2014
CFA Institute: Financial NewsBrief
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Amazon teams up with Twitter
Amazon is striving to turn Twitter into its latest shopping window as the companies move into blending social media with e-commerce. The partnership will allow consumers who see an Amazon product link in a tweet to add the product to their Amazon basket. Bloomberg Businessweek (05 May.), Financial Times (tiered subscription model) (05 May.)
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Global banks reportedly seek role in Alibaba's IPO
Depending on the size of Alibaba Group Holding's initial public offering, a handful of global banks could split as much as $400 million in fees, sources say. Financial Times (tiered subscription model) (06 May.)
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France rejects GE's bid for Alstom assets
The French government has opposed an offer from General Electric for the energy assets of Alstom. "In its current form, we unfortunately cannot give backing to the proposals that you have made based solely on the purchase of Alstom's energy activities," Arnaud Montebourg, France's industry minister, wrote to GE CEO Jeff Immelt. However, a deal combining the rail businesses of the companies is possible. Reuters (06 May.), Financial Times (tiered subscription model) (06 May.), The Wall Street Journal (tiered subscription model) (05 May.)
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Banks accused of manipulating gold fix face lawsuits
Hedge funds, public investors and private citizens are suing the five banks that determine the price of gold. "The 'great flaw' of the gold fixing process is that the member banks trade on the information exchanged during the call to manipulate the price of gold and gold derivatives before publication of the gold fix to the wider market," according to one of the lawsuits. The New York Times (tiered subscription model) (05 May.)
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Data breach prompts change in Target leadership
Target CEO, President and Chairman Gregg Steinhafel has stepped down after a large-scale cyberattack on the company in December. Chief Financial Officer John Mulligan has been named interim president and CEO, while Roxanne Austin, a member of the board of directors, has been selected as interim non-executive chairwoman. Reuters (05 May.), Los Angeles Times (tiered subscription model)/The Associated Press (05 May.), Bloomberg (05 May.)
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Study: HFT has benefits that proposed rules would mar
The Mercatus Center of George Mason University has released a report that takes a deep look into proposals that have bubbled up in the recent firestorm over high-frequency trading. The report concludes that the proposed remedies would not make things better. Market News International (05 May.)
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Asian-Pacific markets change little in light trading
Markets in Asia-Pacific were mixed Tuesday, after Wall Street finished higher Monday. Australia's S&P/ASX 200 edged up 0.4%. China's Shanghai Composite, Indonesia's Jakarta Composite and shares in the Philippines were flat. Markets in Japan, Hong Kong and South Korea were closed for holidays. CNBC (06 May.), Reuters (06 May.)
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Markit plans IPO in U.S.
London-based Markit has filed for an initial public offering in the U.S. The company, which provides price data for global bond and derivative markets, is looking to raise about $750 million, although that figure is likely to change. Markit reported $948 million in revenue and $230 million in operating profit last year. Reuters (05 May.), Bloomberg (05 May.), The New York Times (tiered subscription model)/DealBook blog (05 May.)
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European firms use high-yield bonds for M&A funding
More European companies looking to raise capital for acquisitions are turning to high-yield bonds. An attractive average yield of 4.15%, compared with 25.3% in 2008, is spurring interest. Financial Times (tiered subscription model) (05 May.)
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IMF official: Eurozone bond rally could end in dismay
Jose Vinals of the International Monetary Fund has warned that investors who have been embracing eurozone bonds could face disappointment if the economic recovery sputters. Financial Times (tiered subscription model) (04 May.)
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Big investors focus on mega-cap stocks, analysis finds
Abel/Noser has released an analysis that says institutional investors' holdings in the fourth quarter focused on mega-capitalization stocks that were highly liquid. "Nearly 5½ years after the great financial crisis of 2008, liquidity is still king," President and CEO Bill Conlin said. MarketsMedia (05 May.)
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Money markets present concern for ECB
Mario Draghi, president of the European Central Bank, is facing a test of his vow that the bank is prepared to respond to unwarranted money tightening. Overnight interbank rates are indicating that money market investors are returning to pre-crisis activity, despite the fragile economic recovery. Such rates are, for the first time since the beginning of the financial crisis, exceeding the ECB benchmark rate. Bloomberg (06 May.)
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EU predicts decent GDP growth for Spain
Spain's gross domestic product will increase 2.1% in 2015, the EU says in its spring economic forecast. That would be the fastest growth in eight years and is higher than Spain's forecast of 1.8%. The EU expects Spain's budget deficit to expand to 6.1% of GDP, although the Spanish government says it plans to hold to a 4.2% target. Bloomberg Businessweek (05 May.)
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Hedge fund manager notes importance of Fannie, Freddie
Bill Ackman of Pershing Square Capital Management said at the Sohn Investment Conference that Fannie Mae and Freddie Mac are "essential" to the mortgage market. Ackman is among a group of distressed-equity investors who are hoping for a revival of the mortgage giants. The Wall Street Journal (tiered subscription model)/MoneyBeat blog (05 May.)
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Geopolitical/Regulatory
Diplomats: FTT phase-in would start in 2016
Finance ministers from 11 eurozone countries plan to form a legal basis for a phased-in tax on financial transactions that would be implemented in 2016, diplomats say. Many details about the tax, including what exactly it covers, remain undecided. Reuters (05 May.), Bloomberg (05 May.)
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Schaeuble wants FTT to start with shares, some derivatives
German Finance Minister Wolfgang Schaeuble says a proposed tax on financial transactions in 11 eurozone nations should first tackle shares and certain derivatives. "The options, interests and situation of the various participants are so divergent that in a first step, we can only have a limited taxation of shares and some derivatives," Schaeuble said. National Public Radio/The Associated Press (05 May.), The Wall Street Journal (tiered subscription model) (05 May.)
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DOJ prepares cases against major banks
The Department of Justice is considering criminal charges against BNP Paribas and Credit Suisse, as U.S. officials respond to criticism that they have failed to hold companies responsible for the global financial crisis. U.S. Attorney General Eric Holder has warned that no company or individual is "too big to jail." Bloomberg (05 May.), The Washington Post (tiered subscription model) (05 May.), Financial Times (tiered subscription model) (05 May.)
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Carbon-linked debt note to test Chinese market
A division of China General Nuclear Power Group plans to issue a debt note linked to carbon offsets. It is China's first carbon-linked financial product and is expected to test confidence in the country's emerging emissions market. "We see a market potential for companies to finance mitigation activities with these new products," said Cui Xuelai, a broker at Shanghai Pudong Development Bank. "We are looking at carbon futures and other financing tools like green bonds, but it depends on how the carbon market performs." Reuters (06 May.)
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