Markets

Japan down but not out

Fri, 24 May 2013 11:14:00 GMT

Japan's Nikkei 225 Average fell 12 per cent in a day and a half, but found support on Friday morning. James Mackintosh, investment editor, says this suggests a healthy correction in an ongoing rally, rather than a return to the usual grim form for Japanese shareholders.

Profitless rally

Fri, 24 May 2013 04:36:07 GMT

Even after this week's sell-offs, 2013 has seen an impressive rally in equities. Rob Buckland, chief global equity strategist at Citi, discusses with Long View columnist John Authers why the climb has come despite flat or declining company profits.

Japan’s plunge and Fed fears

Thu, 23 May 2013 00:44:00 GMT

Japanese shares had their 11th worst day in more than half a century on Thursday. But while the equities fall is a case of correcting a climb that had run too far and too fast, James Mackintosh, investment editor, says the US Federal Reserve has lulled other markets into believing in Goldilocks.

Abenomics is nothing new

Thu, 23 May 2013 04:52:40 GMT

Far from a new beginning, Yasunari Ueno, Mizuho's chief market economist, says that those who believe in Abenomics are suffering from a bout of amnesia. The FT's Ben McLannahan reports from Tokyo.

Dangerous dumb money

Wed, 22 May 2013 10:54:00 GMT

So far May has been the best month in a decade for flows into mutual and exchange traded funds focusing on Japan. James Mackintosh, investment editor, analyses whether it is time investors curbed their enthusiasm.

Flaws of financial transaction tax

Tue, 21 May 2013 12:34:00 GMT

A 'Robin Hood' tax on financial transactions was seen as a way to discourage speculative market trades. Capital markets editor Ralph Atkins and FT Trading Room editor Philip Stafford discuss how turning theory into practice is proving a challenge.

Caught short

Tue, 21 May 2013 10:20:03 GMT

The recent climb in the market has been helped by short sellers rushing to cover loss-making bets against shares. But overall shorting is still rising, notes James Mackintosh, investment editor, as short sellers stick with idea of selling in May.

Wolf on averting climate chaos

Tue, 21 May 2013 05:18:37 GMT

Global carbon dioxide emissions have increased sharply as the developing world industrialises. Martin Wolf, chief economics commentator, tells Long View columnist John Authers why this is a problem and how it can be tackled.

Europe's failure on debt restructuring

Fri, 17 May 2013 15:15:04 GMT

The past year has probably been the most important in sovereign debt history. Lee Buccheit, partner at Clearly Gottlieb and advisor to most countries in financial distress, tells the FT's Robin Wigglesworth why Europe should have acted faster.

Dollar bull run?

Fri, 17 May 2013 11:32:00 GMT

The dollar is up 5 per cent against major currencies this year, and has sparked talk of a multiyear bull run. James Mackintosh, investment editor, says the greenback should be strong - but the bulls need a lot more evidence of US growth than we have seen so far.

Carney's UK strategy

Fri, 17 May 2013 05:24:03 GMT

Things are looking up, according to Mervyn King's final inflation report for the Bank of England. Gavyn Davies, chairman of Fulcrum Asset Management, tells Long View columnist John Authers that the strategy of his successor Mark Carney may well borrow a lot from the US Federal Reserve.

The American exception

Thu, 16 May 2013 10:56:00 GMT

Investors are betting on a US recovery and Chinese weakness, as semiconductor shares lead cyclicals higher. James Mackintosh warns that the market looks vulnerable if housing or jobs data falter.

Unconfident Brazilians

Wed, 15 May 2013 05:57:00 GMT

Brazil's middle class has been feeling the pinch, and worries over personal debt and inflation have shaken their confidence. Brazil Confidential’s principal Richard Lapper discusses with Long View columnist John Authers whether consumer confidence will recover.

Investors' dash for trash

Thu, 16 May 2013 03:21:05 GMT

Wall Street traders are calling them 'the bonds formerly known as high-yield'. FT markets reporter Stephen Foley goes behind the rally in junk bonds and asks why fixed-income investors are taking on more risk for less reward.

Land of the rising sun and falling yen

Wed, 15 May 2013 05:07:36 GMT

This time it is different - for the first time in decades, the yen has fallen against the dollar for eight months running. But Ashraf Laidi, chief market strategist with City Index, tells Long View columnist John Authers that the yen will continue to sink.

Spiking Japan

Tue, 14 May 2013 05:31:00 GMT

Japanese 10-year bond yields have had their biggest three-day rise since 2003. James Mackintosh, investment editor, says the belief that deflation can be defeated may be more accurate this time - but does not mean sustainable growth will be assured.

Biotech high

Tue, 14 May 2013 11:03:00 GMT

Biotech stocks have performed well in the US this year. James Mackintosh, investment editor, says hopes are high for easier regulation and improved discovery rates. Yet this remains unsubstantiated - and speculation should be expected.

Money in energy efficiency?

Tue, 14 May 2013 05:03:27 GMT

The world's demand for energy is rising. Carbon emissions are also rising. Sarbjit Nahal, thematic strategist at Bank of America Merrill Lynch, expects this to drive investment in more efficient energy use. He discusses with Long View columnist John Authers the opportunities this could create.

Borsa Istanbul eyes alliances

Mon, 13 May 2013 05:28:00 GMT

Ibrahim Turhan, chairman and chief executive of the Istanbul stock exchange, talks to Ralph Atkins, capital markets editor, about plans to link up with the London Stock Exchange. He also discusses global regulation, warning that regulators should not forget that emerging markets have had a different crisis to more developed economies.

Regulatory over-reach?

Mon, 13 May 2013 05:17:00 GMT

Financial markets capitals are growing increasingly worried about the potential extra-territorial reach of markets legislation such as the US Dodd-Frank act or the proposed eurozone financial transactions tax. Thomas Zeeb, chief executive of SIX Securities Services, discusses the potential impact on Switzerland with FT Trading Room editor Philip Stafford

Global easing

Mon, 13 May 2013 00:33:00 GMT

Matthew Beesley, head of global equities at Henderson Global Investors, talks to FTfm about how Japan’s ultra-loose monetary policy is changing the overall investment environment in Asia and beyond.

Africa deserves the hype

Fri, 10 May 2013 04:19:33 GMT

Africa is a land of opportunity and it may be doing a lot better than its data are telling us. Adam Robert Green, senior reporter with This is Africa, discusses with Long View columnist John Authers why GDP in many of the continent's nations has been underestimated and why the opportunities need to be assessed country by country.

Japan's dash for trash

Thu, 09 May 2013 05:27:00 GMT

The Bank of Japan has turned on the printing presses and stock market winners should be clear. But as James Mackintosh, investment editor, explains, once the yen collapse is filtered out, signs of belief in an economic renaissance are hard to see.

Index-based investing after Libor scandal

Fri, 03 May 2013 03:34:00 GMT

Index-based investing is enjoying unprecedented growth but global financial regulators are now conducting in-depth reviews of financial indices in the wake of the Libor scandal. Alex Matturri, the chief executive of S&P Dow Jones Indices, discusses index regulation and governance with FTfm.

Kiwi flies

Thu, 09 May 2013 11:31:00 GMT

High-yielding havens such as Sweden, New Zealand and Australia are being drawn into the global currency war. But as James Mackintosh, investment editor, explains, simple carry trade economics helps keep their currencies strong, while global slowdown will weaken them

Junk's heyday is here and now

Thu, 09 May 2013 06:02:20 GMT

Junk was king in the 1980s but both defaults and yields are now far lower than they were then. Jim Reid, Deutsche Bank's global head of fundamental credit strategy, explains why to Long View columnist John Authers, and warns that such low default rates may be unhealthy.

Defensives froth over

Wed, 08 May 2013 11:16:00 GMT

Equity markets have climbed to record highs, driven by the search for yield and bond proxies. James Mackintosh, investment editor, says cyclicals may be returning to favour rather than defensives because the latter are getting very expensive.

Letta's growth plan – more of a pipe dream?

Wed, 08 May 2013 05:02:35 GMT

Enrico Letta, Italy's new prime minister wants to cut taxes on property and labour, increase spending on education and maintain the deficit target Rome has agreed with Brussels. Riccardo Barbieri, chief European economist at Mizuho International, considers with FT leader writer Ferdinando Giugliano whether Mr Letta's growth plan is realistic.

Hunting for opportunities

Tue, 07 May 2013 09:29:01 GMT

Growth appears to be non-existent in the developed world, or sluggish at best, but markets are at all-time highs. Hans Stoter, chief investment officer of ING Investment Management, discusses with John Authers, Long View columnist, where the opportunities for investors can be found.

Europe's Tobin tax - a hit to savers?

Mon, 06 May 2013 04:59:59 GMT

Brussels' proposed financial transactions tax on equity and derivatives markets in eurozone countries is proving highly contentious. Jane Lowe, director of markets for the Investment Management Association, tells Philip Stafford, FT Trading Room editor, why her members, who represent UK-based institutions, are worried about a levy intended to affect eurozone states.

Charging for deposits

Fri, 03 May 2013 11:51:00 GMT

Forget the cut in the ECB's headline interest rate, announced by its president Mario Draghi on Thursday - investor attention was on his hint that a negative deposit rate was more likely than had been thought, prompting a sharp drop in the euro. James Mackintosh, investment editor, explains why it is the deposit rate, not lending rate, that really matters.

Asean leads the world

Fri, 03 May 2013 05:16:35 GMT

The top emerging stock markets over the past two years were the Philippines and Thailand. Denise Law, director of financial research at the FT's newly launched Asean Confidential service, discusses with Long View columnist John Authers what is driving southeast Asian stocks and what risks and opportunities lie ahead.

Seeking returns with dividend ETFs

Thu, 02 May 2013 03:52:00 GMT

Investors are making use of a growing variety of exchange traded funds to put their money to work in financial markets. Ursula Marchioni, a director in the European investment strategy team at iShares, discusses interest in dividend-focused ETFs and low volatility ETFs and whether investors' appetite for these vehicles is likely to remain strong.

True Libor

Thu, 02 May 2013 11:16:00 GMT

Perhaps Libor should stand for London's Imaginary Offered Rate, with so little real lending going on. It was not the most sensible peg for $350tn of derivatives and has become a byword for fraud. But James Mackintosh, investment editor, suggests markets might still prefer it to the equally malleable alternatives.

Defensive rally

Thu, 02 May 2013 05:00:39 GMT

It is a rare stock market that is driven by defensives. Peter Oppenheimer, chief global equity strategist at Goldman Sachs discusses with Long View columnist John Authers how the hunt for yield and risk aversion is making companies with reliable revenues most attractive.

Apple bites into corporate bonds

Wed, 01 May 2013 01:09:00 GMT

Apple on Tuesday rewrote record books again with a $17bn bond issue with rock-bottom yields. James Mackintosh, investment editor, considers how long the credit bubble can continue.

Will 'Super Mario' come to the rescue?

Wed, 01 May 2013 05:43:47 GMT

Although it has avoided break-up, the eurozone economy remains in a fragile state. Growth is weak, southern European SMEs are struggling and inflation is below target. The pressure is on Mario Draghi, ECB president, to announce bolder measures at Thursday's ECB meeting. Julian Callow, chief international economist at Barclays, considers Draghi's options with capital markets editor Ralph Atkins.

S&P 500 reaches new milestone

Tue, 30 Apr 2013 23:07:31 GMT

Ken Polcari, director of O'Neil Securities, tells US markets editor Michael Mackenzie that it is the Fed's quantitative easing which is propelling stock prices.

Clearing's impact on buy-side

Tue, 30 Apr 2013 11:44:00 GMT

Clearing becomes mandatory for over-the-counter derivatives trades in the US this year. Garth Friesen, co-chief investment officer of III Associates, explains to FT Trading Room editor Philip Stafford why he is confident institutional investors will be ready for the transition.

Italy axes austerity

Tue, 30 Apr 2013 11:21:00 GMT

Investors demanded Europe's governments balance their budgets. When austerity and recession resulted, they rapidly changed their focus to growth. James Mackintosh, investment editor, looks at Italy, and its banks.

Deflated equity capital markets

Tue, 30 Apr 2013 05:09:01 GMT

Banks' revenues and equity volumes have fallen sharply since the financial crisis. Craig Coben, head of equity capital markets at Bank of America Merrill Lynch, explains to the FT's Alexandra Stevenson what is behind the fall and what conditions are needed to bring it back to life.

Imposing 'speed limits' on HFT

Mon, 29 Apr 2013 04:27:00 GMT

High-frequency trading has been blamed for stoking market volatility and regulators have it in their sights. In a pre-emptive move, EBS, one of the two dominant foreign exchange trading platforms, is considering 'speed limits' on electronic trading. Lex's Stuart Kirk and Nikki Tait discuss why the group is thinking about taking action early.

Ireland’s soggy patch

Fri, 26 Apr 2013 11:24:00 GMT

Ireland has been hailed as a model of austerity-driven recovery by Europe’s politicians. Unfortunately the recovery is reversing. James Mackintosh, investment editor, says Europe is unlikely to allow Ireland’s soft patch to deteriorate further.

GDP fillip for Osborne

Fri, 26 Apr 2013 05:48:29 GMT

The UK economy grew 0.3 per cent in the first quarter of this year. Chris Giles, economics editor, discusses with economics correspondent Sarah O'Connor how signs of consumer strength offer encouragement to chancellor George Osborne amid the persistent economic stagnation.

Tigers of the wild frontier

Thu, 25 Apr 2013 11:31:00 GMT

The global hunt for yield drove investors this morning to offer Rwanda almost half its GDP as its bond offer was wildly oversubscribed. James Mackintosh, investment editor, analyses the demand for Africa's tigers despite three defaults this year in frontier markets.

Investors behaving badly

Thu, 25 Apr 2013 09:42:15 GMT

Institutional and retail investors often fail to act in their own best interests, exhibiting behaviour that is at odds with their stated goals. Suzanne Duncan, global head of research for the State Street Center for Applied Research, tells FTfm's Chris Flood that investor behaviour is changing, affecting the future of the investment management industry.

Matolcsy's mortgage problem in Hungary

Thu, 25 Apr 2013 05:00:11 GMT

Foreign currency debt - that is the problem facing György Matolcsy, Hungary's central banker known for his unorthodox policies. More than half the household and company debt in Hungary is not in forints. Peter Attard Montalto, emerging markets economist at Nomura, discusses with deputy emerging markets editor Jonathan Wheatley how Hungary is tackling this and the resilience of foreign investors despite such risks.

ECB: Don’t take calm markets for granted

Wed, 24 Apr 2013 12:30:47 GMT

Jörg Asmussen, an executive board member of the European Central Bank, says the effectiveness of a rate cut would be limited, warns that the calm in markets can’t be taken for granted and says the ECB is looking at unconventional monetary measures. He also discusses with FT capital markets editor Ralph Atkins the change in Japan’s monetary policy, the Cyprus bailout and lending problems to small business.

Bad news is bad news for bears

Wed, 24 Apr 2013 11:38:00 GMT

Bad news on Europe's economy is good news for equity markets but bad news for Germany and bears. James Mackintosh, investment editor, says investors are ignoring poor fundamentals but betting that the free money prop from central banks won't improve the outlook any time soon.

US stocks: A high-yielding oasis

Tue, 23 Apr 2013 16:03:43 GMT

US stock markets are still near all-time records, and yet other markets suggest that investors are increasingly worried about a global slowdown in growth. Jamie Chisholm, FT global markets correspondent, tells John Authers that this may be because US stocks still offer high dividends in a world of very low yields.