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☆ Investors piled $354 bln into cash since Ukraine war - BofA
▼ + stars: | 2023-02-24 | by ( Harry Robertson | ) www.reuters.com time to read: +2 min

REUTERS/Lisi NiesnerLONDON, Feb 24 (Reuters) - Global investors have allocated $354 billion to cash since Russia's invasion of Ukraine first shook global financial markets in February 2022, according to data released by Bank of America on Friday. The price shock forced central banks to hike interest rates, clobbering stock and bond markets in the process. Since February 2022, investors have pulled $135 billion from bond funds, BofA said, citing figures from financial data company EPFR. Investors have become more positive at the start of 2023, especially about bonds, even as the Ukraine war drags on. Flows into bond funds continued for the eighth straight week last week, BofA said, at $4.9 billion.

"There have been a number of approaches, but so far without getting any response" from the government, the source added. But progress has been complicated by a two-year civil war that broke out in November 2020, killing thousands of people and displacing millions. The international bond only makes up a small part of the country's total external government debt, which stood at $27.4 billion in the third quarter of last year, according to World Bank data. International bondholders have not formed a private creditors committee for the extension proposal because Ethiopia has continued to service the bond normally, two of the sources added. Recent filings show that Franklin Templeton Fixed Income Group and Allianz Global Investors U.S. LLC are some of the holders of the bond, according to EMAXX data.

☆ Not many global investors are buying into China's reopening story yet, says investment firm
▼ + stars: | 2023-02-22 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNot many global investors are buying into China's reopening story yet, says investment firmWilliam Ma of Grow Investment Group says consumption will be a "big theme" for the mainland China and Hong Kong markets this year.

☆ Wealthy Americans are racing to get the EU's last remaining 'golden passport' before it's gone
▼ + stars: | 2023-02-17 | by ( Hannah Towey | ) www.businessinsider.com time to read: +6 min

For the first time, Americans are applying for "golden passports" more than any other nationality. For the first time, Americans are applying for golden passports and visas more than any other nationality, according to Henley & Partners' 2023 USA Wealth Report, released Thursday. Henley & Partners' Head of North America Mehdi Kadiri said Malta's golden passport scheme was the second-most sought-after program among Americans, in part because Malta's program is accessible through real estate investment. Former Google CEO Eric Schmidt reportedly applied for European citizenship in 2020 through Cyprus' now-defunct golden passport program. Following Russia's invasion of Ukraine, golden passports and visas faced global scrutiny for allowing sanctioned oligarchs access to the UK.

☆ Watch CNBC's full interview with Don Peebles, Michael Yoshikami and Todd Jablonski
▼ + stars: | 2023-02-16 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Don Peebles, Michael Yoshikami and Todd JablonskiDon Peebles, The Peebles Corp. chairman and CEO, Destination Wealth Management CEO Michael Yoshikami and Todd Jablonski of Principal Global Investors, join ‘The Exchange’ to discuss what's moving the market, why the bond market is rallying and more.

☆ Morning bid: When meeting expectations isn't enough
▼ + stars: | 2023-02-15 | by ( ) www.reuters.com time to read: +3 min

That sent the S&P down but the Nasdaq index ended up, while two-year Treasury yields rose to 3.799, the highest since January. It looks like markets are still unable to make up their minds on the data's long-term impact. Officials said the U.S. central bank would need to keep gradually raising interest rates to beat inflation. After the inflation data, traders of interest rate futures now see the Fed raising borrowing costs three more times, bringing the policy rate to the 5.25%-5.50% range by July, if not June. Meanwhile, investors turned more optimistic about the global economy in February, flocking to emerging market stocks and cutting their cash holdings to levels last seen before the war in Ukraine, a BofA survey of global investors showed on Tuesday.

☆ Investors Pour Into Chinese Stock Funds in Reopening Bet
▼ + stars: | 2023-02-14 | by ( Jack Pitcher | Hardika Singh | ) www.wsj.com time to read: 1 min

Global investors are pouring money into funds that track Chinese stocks, betting that the long-awaited reopening of the world’s second-largest economy will keep powering markets higher. Investors have added more than $2 billion on a net basis this year to U.S.-based mutual and exchange-traded funds that buy Chinese equities, according to data from Refinitiv Lipper. That reflects five consecutive weeks of inflows and marks a reversal from the second half of last year when they pulled almost $1 billion. It also coincides with an exodus from U.S.-focused stock funds.

They stressed that the reallocation would be gradual and not result in fire sales, with new money going largely into fixed income rather than alternative investments. Goldman Sachs' asset management arm is planning to significantly reduce its $59 billion of alternative investments. Credit rating agencies Moody's and S&P, which both give Allianz high marks, have pointed to the greater risk posed by comparatively illiquid alternative investments in Allianz's portfolio. Alternative investments come at a price, requiring Allianz and other insurers to set aside more capital to own them because they are less liquid than bonds. In its wake, Allianz has had to close down Allianz Global Investors in the United States in a serious blow to the company.

☆ Dan Sundheim’s D1 Capital places new bets on home furnishing retailers, adds to Big Tech
▼ + stars: | 2023-02-14 | by ( Pia Singh | ) www.cnbc.com time to read: +2 min

The New York-based hedge fund bought a $205 million initial position in Floor & Decor Holdings , and $104 million worth of shares in mattress maker Tempur Sealy in the fourth quarter. Sundheim placed new bets on fintech companies Bill.com Holdings and Intuit , buying about $91 million and $14 million worth of shares in each company, respectively. D1 also bought $81 million worth of Alibaba . D1 managed about $40 billion at the end of the fourth quarter, according to WhaleWisdom.com. Sundheim started D1 in 2018 after a stint as chief investment officer at Viking Global Investors.

☆ Fund managers rush into emerging stocks and cut cash - BofA survey
▼ + stars: | 2023-02-14 | by ( ) www.reuters.com time to read: +2 min

The survey of 299 fund managers, with a combined $847 billion in assets under management, found investors were still broadly cautious, but less so than been in recent months. Just 24% predict a recession compared to 77% who did in November, according to the survey conducted in the week to Feb. 9. Investors remain net overweight cash and underweight equities, but a combined index that measures growth expectations, cash allocations and equity allocations improved to its highest level in a year. "(Fund manager survey) investors remain pessimistic in February but to a lesser degree, with all key measures of sentiment improving (month on month) and shift in positioning highlighting stronger risk appetite," BofA analysts said in a note. It also found that "long China stocks" was now the most crowded trade along with long investment grade bonds, replacing long US dollar cash.

☆ Investors see Hong Kong property stocks, funds as reopening trades
▼ + stars: | 2023-02-13 | by ( Georgina Lee | ) www.reuters.com time to read: +4 min

Investors see value in property companies regardless of whether their assets are in mainland China or Hong Kong, which reopened at about the same time. Rises in Hong Kong mortgage rates that began last year have compounded troubles for developers and mortgagees. Hong Kong interest rates tailgate those of the U.S. due to the local currency's peg to the dollar. "Hong Kong has a lot more to get us excited than China property companies where their financial data remains weak," said Tim Gibson, co-head of Global Property Equities at Janus Henderson Investors. "We remain positive on Hong Kong and many of its listed real asset companies, across infrastructure, utilities and property," said Fitzgerald.

☆ A corner of tech is up 50% from its 2022 lows — and strategists recommend these stocks to play it
▼ + stars: | 2023-02-13 | by ( Zavier Ong | ) www.cnbc.com time to read: +4 min

The semiconductor sector has seen quite a turnaround of late. Chip stocks were among the worst performers last year, with the iShares Semiconductor ETF (SOXX) shedding more than 35% of its value. Despite this, chip stocks have flown somewhat under the radar since the beginning of the year as the buzz around artificial intelligence and a recovery in Big Tech dominated investor attention. While the semiconductor sector is notorious for its cyclicality and boom-bust cycles, several Wall Street pros are urging investors to take a longer-term view. Europe stock ideas In Europe, a raft of chip stocks made Bank of America 's list of "2023 European Best Stock Ideas."

☆ Global investors losing appetite for Chinese government bonds
▼ + stars: | 2023-02-10 | by ( Summer Zhen | ) www.reuters.com time to read: +4 min

Signs of a peak in developed market rates are another reason why China's bonds, yielding roughly 3% on 10-year investments, are less appealing, given the potential greater capital gains elsewhere. "If investors are saying that I want to trade the China recovery, the answer is not Chinese government bonds (CGBs). "China bonds served as a very good type of diversifier, in particular over the past 3 years," said Pang. But as global rates hit a peak, it made sense to plough limited cash into better yielding markets, he said. ($1 = 6.7969 Chinese yuan renminbi)Reporting by Summer Zhen Additional reporting by Rae Wee in Singapore Editing by Vidya Ranganathan and Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

StanChart declined to comment on the reports of a fresh bid, while FAB did not respond to requests for comment. While StanChart's balance sheet, staff numbers and global footprint dwarf FAB's, it is worth half as much. StanChart's shares rose by 11% on Thursday after Bloomberg News reported that a possible FAB bid would value its target at $30 billion to $35 billion, a significant premium to the Asia-focused banking powerhouse's $24 billion market value. A second shareholder questioned whether FAB's shares would be attractive to British-based holders of StanChart stock. "I can't think shareholders would relish adding a small Gulf bank to Stan's current geographic mix," the investor added.

But unlike ICBC and its peers, Ant neither took deposits, nor piled risky loans onto its balance sheet. Free from the red tape that binds regular banks, the loans facilitated by Ant ballooned. Digital offerings accounted for half of overall consumer loans in China, Fitch Ratings calculated in 2021. Ant is set to become a licensed financial holding company, putting it under the close watch of China's main banking regulator. Beijing wants Chinese consumers to consume, so is likely to indulge controlled growth of consumer credit.

☆ Chinese savers stashed away $2.6 trillion last year but property crash will cool ‘revenge spending’
▼ + stars: | 2023-02-07 | by ( Laura He | ) edition.cnn.com time to read: +6 min

Burberry (BBRYF) said last month that it’s seeing “very promising” signs in China, according to Reuters. Since real estate accounts for 70% of household wealth in China, “revenge spending” will be limited, analysts said. They expect household consumption growth to rebound to 9.5% in 2023 from about 3% in 2022, fueling annual GDP growth of more than 5%. Morgan Stanley analysts expect to see some “revenge spending” mostly from household with stable incomes. They’re expecting household consumption growth to rebound to 8.5% in 2023, contributing to full-year economic growth of 5.7%.

☆ Adani Group’s Moment of Truth
▼ + stars: | 2023-02-02 | by ( Megha Mandavia | ) www.wsj.com time to read: 1 min

Global investors, who largely funded Adani Group ’s rising debt in recent years, are shunning its bonds after an attack from a New York-based short seller. Regaining markets’ confidence—or finding new private funding—will be essential to avoid problems as the Indian conglomerate’s dollar bonds start coming due. After a brief rally following Adani Enterprises’ successful completion of a new share offer on Tuesday in India, prices of many of the group’s dollar bonds—including issues from Adani Ports and Adani Green maturing in 2024—continued their slide on Wednesday. Adani Enterprises, whose shares are now at half of the offer price on the new issue, on Wednesday evening in India said it was canceling the sale and would return the proceeds to investors.

☆ Former Allianz Fund Manager Accuses Firm and Its Lawyers of Double-Crossing Him
▼ + stars: | 2023-01-31 | by ( Dylan Tokar | ) www.wsj.com time to read: +5 min

In his brief, Mr. Tournant excerpted a slide containing photos of himself and two other former Allianz executives, which his lawyers likened to a most-wanted poster. Mr. Tournant was also represented by a third firm that wasn’t jointly retained by Allianz, according to his motion. The firms’ agreements required them to inform Mr. Tournant in the event that a conflict of interest arose, according to his motion. Allianz’s posture toward Mr. Tournant changed after Mr. Bond-Nelson broke ties with the firm’s defense team and began shifting blame to Mr. Tournant, according to his brief. The pivot was a direct result of the policies outlined in recent years by officials such as Deputy Attorney General Lisa Monaco, according to Mr. Tournant.

Morgan Stanley economists forecast its stock market will be the world’s third largest before the end of 2030. For those who passively track stock market indexes, the controversy engulfing Adani, briefly the world’s third richest man, may act as a deterrent from an already expensive market. The newish chair of India’s securities regulator, Madhabi Puri Buch, has already wielded a stick at credit rating agencies to instil better market discipline. In the meantime, the turmoil is a reminder to investors of the danger of investing blindly in emerging markets. Stocks look increasingly expensive compared to emerging marketsReuters GraphicsFollow @ugalani and @ShritamaBose on TwitterloadingloadingCONTEXT NEWSShares of the Adani group companies have lost $65 billion since Jan. 25 after U.S. short-seller Hindenburg Research published a research note on the group.

☆ Investing in South Korean stocks to get easier for foreigners in 2023 - regulator
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +2 min

The Financial Services Commission said in a statement there was a huge discrepancy between the regulations currently in place and the global standards and that "(it) will boldly improve regulations that have hindered global investors from investing in our market." The regulator said it would scrap a three-decade-old rule that requires foreigners to register with authorities prior to trading South Korean stocks. The push comes as South Korea pursues the promotion of its stock market to Morgan Stanley Capital International's developed market index. It is currently categorised as an emerging market by the global index provider. The regulator plans to complete the required legislation revision process in the first half of this year to implement such changes within 2023.

☆ Top hedge funds earned sharply less for clients in 2022, LCH data shows
▼ + stars: | 2023-01-23 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +2 min

Jan 23 (Reuters) - The 20 best performing hedge fund managers earned $22.4 billion for investors in 2022, marking their slimmest gains since 2016 as many firms, including Tiger Global Management, struggled with slumping financial markets, LCH Investments data show. The top 20 managers, led by Ken Griffin's Citadel, Bridgewater Associates and D.E. Overall, hedge funds lost $208 billion in 2022 for clients, marking the biggest single-year decline since 2008, when they lost $565 billion, LCH data showed. Hedge funds, which were jointly managing $3.3 trillion on Dec. 31, 2022, according to eVestment data, often promise to outperform, especially when markets are stumbling. Shaw, Millennium Management, Soros Fund Management, Elliott Management, and Viking Global Investors also ranked in the top 10.

☆ Who is Shou Zi Chew? Mounting scrutiny on TikTok could put new spotlight on its CEO
▼ + stars: | 2023-01-20 | by ( Catherine Thorbecke | ) edition.cnn.com time to read: +8 min

Months later, when TikTok was grilled by Congress over privacy and security concerns, Pappas was the TikTok executive in the hot seat fielding questions. But Chew, who took over as TikTok CEO in April 2021, has largely stayed out of the spotlight at a time when the app he leads can’t seem to avoid it. He eventually went on to become the CFO of Chinese tech giant Xiaomi, which he helped take public in 2018. While Chew is not a Chinese national, Quint noted Chinese tech companies and leaders that have drawn too much attention to themselves have faced tough government crackdowns. Ultimately, Quint said, “I don’t think the CEO of TikTok has much relevance at all” for US lawmakers scrutinizing its ties to China.

☆ Morning bid: Dodging a downturn
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: +5 min

A look at the day ahead in U.S. and global markets from Mike Dolan. Global investors have fretted endlessly about a 2023 recession for the major global economies for more than six months. And Tuesday's latest economic healthcheck showed that the severe hit to Chinese economic activity from the draconian lockdown policies was actually much less than feared. The survey showed that investors' recession expectations peaked at a net 77% of respondents in November but have fallen to 68% in January. The BofA survey showed fund managers may have already repositioned, however, as their allocation to U.S. equities dived in January and a net 39% said they were underweight while preferring euro zone stocks.

☆ Analysis: China's rapid reopening brings joy and woe for world markets
▼ + stars: | 2023-01-13 | by ( Yoruk Bahceli | ) www.reuters.com time to read: +6 min

The impact of the reopening of the world's second largest economy on financial markets, hit by double-digit losses last year as inflation and interest rates jumped, is critical. Being touted among the top buying bets on recovery hopes are emerging markets, commodity currencies, oil, travel and European luxury companies. The boost to world growth from China's reopening was expected to hurt the safe-haven dollar but benefit the euro. INFLATION CAUTIONBut a boost from China's reopening raises some concerns about inflation. China is the world's leading importer of oil and many other commodities -- oil prices have risen 10% since mid-December to almost $84 .

And as the worst economic fears recede, global investors are rapidly rethinking historical underweights in euro zone assets. "One of the main sources of downside risk for economic activity in the euro zone is dissipating," said UniCredit economist Edoardo Campanella. Euro zone economic surprisesUnicredit chart on EU gas storageEuro natural gas prices plungeWEIRD WEATHERThat's not to suggest the problem is gone. Although back below 2021's peaks, year ahead natural gas prices in Europe are still three times the average of 15 year up to the pandemic. But there's little doubt Europe at large is weathering the winter storm better than most had imagined only a few months ago.

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