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Markets: banks under pressure

Deutsche Bank Slumps as Hedge Funds Reduce Exposure

Amid mounting concern about Deutsche Bank AG’s ability to withstand pending legal penalties, about 10 hedge funds that do business with the German lender have moved to reduce their financial exposure. The shares slumped.

https://www.bloomberg.com  Fri., 30 September 2016

Chinese real estate is ‘biggest bubble in history’

Billionaire warns: real estate market in China spiraling out of control

It’s the “biggest bubble in history,” said Wang Jianlin, Chinese Real Estate entrepreneur. Bubble is a sensitive word in China after the dramatic rise and spectacular crash in the country’s stock market last year, which wiped out the savings of millions of small investors who thought Beijing wouldn’t allow the market to drop. After struggling to contain the fallout from the stock market debacle, China’s leaders could face a similar headache in the real estate sector.

https://www.cnn.com  Thu., 29 September 2016

China slowdown is global economy’s biggest threat

“Hard landing” for China’s economy could not be ruled out

The former chief economist of the International Monetary Fund has told the BBC a slowdown in China is the greatest threat to the global economy. Ken Rogoff said a calamitous “hard landing” for one of the main engines of global growth could not be ruled out. “China is going through a big political revolution,” he said. “And I think the economy is slowing down much more than the official figures show,”

https://www.bbc.com  Mon., 26 September 2016

A video to ‘demystify’ how hedge funds make money

Maths. the power to do incredible things

Just as architects use maths for their calculations, we use maths to create predictive tools. Man AHL, a London-based quant hedge fund that manages about $19 billion, is trying to “demystify” how it makes money. The new video, which you can watch below, explains “breakout trading,” one of the most popular systematic trading strategies. Anthony Ledford, Man AHL’s chief scientist, says in the video that the strategy is used to trade cash equities, futures, and FX markets.

https://www.ahl.com  Sat., 24 September 2016

China to become a major investor in the world economy

China foreign expenditure tops inward investment

China invested more money abroad last year than foreign firms piled into the country, data showed on Thursday, a first for the world’s second largest economy as Beijing looks overseas as part of its drive to transform its economic growth model. Overseas direct investment soared more than 18 percent to an all-time high above $145 billion last year, exceeding the $135.6 billion of foreign direct investment.

https://www.afp.com  Thu., 22 September 2016

Microsoft has a share repurchase program

Microsoft Announces Quarterly Dividend Increase

Microsoft Corp. today announced that its board of directors declared a quarterly dividend of $0.39 per share, reflecting a 3 cent or 8 percent increase over the previous quarter’s dividend. The dividend is payable December 8, 2016 to shareholders of record on November 17, 2016. The ex-dividend date will be November 15, 2016. The board of directors also approved a new share repurchase program authorizing up to $40 billion in share repurchases. The new share repurchase program, which has no expiration date, may be terminated at any time. The company reaffirmed that it is on track to complete its current $40 billion stock repurchase program by December 31, 2016.

https://www.prnewswire.com  Wed., 21 September 2016

Hard Brexit will cost City of London its hub status

Passporting rights are tied to the single market

Passporting rights to operate across EU will be lost if UK does not at least stay within the European Economic Area, says Jens Weidmanns. The head of Germany’s central bank has warned that London’s position as a financial centre would be dealt a severe blow if the UK left the single market because banks would be denied the right to operate across the 27 remaining members of the EU. The “hard Brexit” option – favoured by some leading Conservative eurosceptics – would mean banks would automatically be stripped of their ability to conduct business across the EU and open the door for Frankfurt to take business away from London, the Bundesbank president, Jens Weidmann, said.

https://www.theguardian.com  Mon., 19 September 2016

Traders monitored with a machine learning tool the US uses to find terrorists

How to spot insider trading

Top investment banks like Goldman Sachs and UBS are spotting insider trading and other rule-breaking using a machine learning platform that was first developed to help the US catch terrorists. Digital Reasoning has “more than half the bulge bracket firms using our technology to spot inside behaviours and insider threats,” according to Kiran Narsu, senior vice president of commercial sales at the company.

https://businessinsider.com  Sat., 17 September 2016

Deutsche Bank: No plan to pay $14B Justice Dept. settlement

U.S. Department of Justice claims $14 billion

Deutsche Bank AG said Friday it does not intend to pay $14 billion to settle civil claims with the U.S. Department of Justice for its handling of residential mortgage-backed securities and related transactions. The bank confirmed in a statement that the Justice Department had proposed a settlement of $14 billion and asked the German bank to make a counter proposal. “Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited. The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts,” the Frankfurt, Germany-based lender said.

https://bigstory.ap.org  Fri., 16 September 2016

More Than 100 Million People Use Telegram

Secure messaging firm Telegram registers 15 billion messages each day

Telegram now has more than 100 million monthly active users sending 15 billion messages each day, the secure messaging firm has revealed. Telegram chief Pavel Durov said at Mobile World Congress in Barcelona that his app’s users were more engaged than those of big rival WhatsApp, which has 10 times as many users that send only three times as many messages each day.

https://telegram.org  Tue., 15 September 2016