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More bad news expected at Deutsche Bank
Capital Markets
<p>After posting a €6 billion loss for the third quarter and scrapping its dividend for the next two years, Deutsche Bank announced plans to leave 10 countries and cut its workforce by 35,000.</p> <p>The decisions follow a writedown at its investment bank and the firing of three of the bank's eight board members.</p> <p>It was bold shake-up by the bank’s new boss John Cryan. But his problems are far from over.</p> <p>“A sanctions settlement may also be in the making. As early as next week, Deutsche is expected to pay at least $200 million to resolve investigations into its dealings with countries like Iran and Syria,” notes Wall Street Breakfast.<br /> Photo: ConstiAB</p>
EU probes Hutchison deal
Capital Markets
<p>Hong Kong’s domestic economy is notoriously dominated by a coterie of tycoons. But, it is harder for them to carve up key business sectors in other parts of the world.</p> <p>On Friday, European Union trust busters launched a full investigation  into Hutchison Whampoa’s HK$123.06 billion ($15.9 billion) bid for British mobile phone operator O2, reports SCMP. (paywall)</p> <p>Hutchison’s planned acquisition of Telefonica’s O2 would make it the top mobile operator in Britain.</p> <p>The company, which is controlled by “Superman” Li Ka-shing, already has a UK mobile business, so the deal would reduce the number of network operators from four to three, a number that raises regulatory alarm bells.</p> <p>"The Commission has concerns that the transaction would remove an important competitive force and that the merged entity would have limited incentives to exercise significant competitive pressure on the remaining competitors," said the European Commission.<br /> Photo: akika8</p>
Nevena Couture’s top 5 rules for evening dress code in London
Lifestyle, 4:01
<p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>London is a magnificently fast-paced city, which naturally combines business, fashion, the arts, and “time-out” culture. There is always a gala-dinner, exhibition opening, charity event, or evening ball. What differentiates London from other vibrant capital cities can be found in its strong English tradition, giving a special recognizable flair to British society.</p> <p>Strict, detailed dress code for most evening events is ever present. Whether white tie or black tie for the evening, or cocktail versus smart casual for day parties, they all dictate the style of dress. Some day parties still expect ladies to wear a hat, even for a Sunday lunch. Having said that, the “spotless” dress policy in England requires awareness of small, but still meaningful rules, characterizing the society we live in.</p> <p>Women are emotional beings and clothes play an important role in self-representation. Evening dresses are a particular signature item for women. They can be the most inspiring fashion item and give women the opportunity to express femininity and charm.</p> <p>The desire to discover something both radiant and striking for the upcoming season inspired FinBuzz to present the Bulgarian Personal Couture London-based designer, Nevena Nikolova. A sophisticated young woman with a bright appearance, an intellectual mind, creative soul, entrepreneurial spirit and obvious charisma has shared with FinBuzz the concept behind the Haute Couture collection and the chronology of her creations in the arena of fashion.</p> <p>FB: How long have you been in the industry and what has influenced you as a designer?</p> <p>I founded the brand back in 2001 in Sofia, the capital of Bulgaria, my home country I left when I moved to London three years ago. I still have one boutique in Sofia and as you can see one here in London, in the renowned Belgravia neighbourhood</p> <p>My fashion path was very natural, organic, as I have always been amazed by haute couture. Influenced by Dior and Audrey Hepburn, I fell in love with craftsmanship. It used to be my hobby, which I consciously developed into my primary business.</p> <p>By profession, I am a linguist, with a major in Scandinavian languages. Being a successful student, I got a grant and went to work in Norway. Working as a translator, I was still looking for something special in terms of clothes, something which reflected a woman’s femininity and I was never attracted to mass-fashion or ready-to-wear garments. Also, working with different cultures, I learned how to transmit a message from one language to another. I worked with social phenomena and developed cross-cultural virtues. All of these invaluable experiences suggested that I should start “speaking” through dresses and couture. I believe I tell stories through my clothes to my customers.</p> <p>So what is the story of the season? And how many collections per year do you have?</p> <p>I never do seasonal stuff. There is one collection per year, which is constantly refreshed with new couture creations. For our clients, we usually organize small events, where we present my new masterpieces and talk to them. Each and every client represents an entire special universe for me. Dress creation for me is more than just creating a garment following modern trends. I always dress a mind, rather than a body. The body can be easily modified, while the mind usually grows or develops together with you. It is ‘experience’ which I put into my dr</p>
Where to look for outperforming active managers
Asset Management
<p>&nbsp;</p> <p>So far in my series on selecting superior active fund managers, I’ve broken the most promising research into two very different areas of focus: 1) identifying which segments of the market, or which types of funds, are most promising; and 2) what characteristics to look at in the funds themselves. The most interesting research in category 1 was the “active share” analyses by Antti Petajisto, which concluded that closet index funds (which happen to hold a near-majority of assets in the fund industry) tend to be consistent losers on an after-fee basis, while high-active-share funds with a stock-picking mentality tended to beat their benchmarks by 126 basis points a year.</p> <p>But of course not all the stock-pickers were winners, and the winning funds tended to be scattered all over the various sectors of the market. Is there a way to analyze the different segments of the global opportunity set, and determine the best places to look for those outperforming managers?</p> <p>As it happens, this is exactly the research that is being conducted by Dan Kern, president of Advisor Partners in Walnut Creek, CA. Kern has an unusual background; he spent eight years as a portfolio manager on the U.S. Growth Equity team at Montgomery Asset Management in San Francisco, and then moved over to researching funds as the managing director of Charles Schwab Investment Management.</p> <p>“Having worn both hats,” he says, “I’ve learned that investment success is frequently a temporary state of affairs. Today’s high flier is tomorrow’s loser.”</p> <p>Today, before he looks for potential outperforming funds, Kern subjects different sectors of the market to three basic tests, which tell him whether he’ll even bother to look at the funds that operate in that space.</p> <p>Payoff: the performance spread</p> <p>Test one is something he calls “payoff.” Is the potential excess return (payoff) worth the risk you would be taking if you decided to invest with an active manager in that sector? Another way to describe this factor is the “performance spread”: Where is it tightest, and least tight?</p> <p>To answer that question, Kern identified the percentage return that would qualify a fund for the upper quadrant (25th percentile) in different asset sectors, and compared it to the return that a fund would have to achieve to fall into the upper 75th percentile. He also looked at the index return. This allowed him to calculate three derivative figures: the 25th percentile return minus the 75th percentile return, the 25th percentile return minus the index return, and the percentage difference between the 25th quartile fund return and the index.</p> <p>Figure 1 shows the results for certain foreign stock and bond sectors, plus one U.S. bond sector, for the five years ending December 31, 2014. As you can see, the highest 25th-minus-75th spreads can be found in the emerging markets equity funds sector (3.02% a year), followed by foreign small/midcap equity funds (2.81%). The spread is tightest in the intermediate-term bond category. In reverse order, those two asset classes also have the highest spread between the 25th percentile returns minus the index, and the emerging-markets equity funds have by far the highest percentage difference between the highest 25% of the funds and the index.</p> <p>Figure 1 – Active-Passive Payoff Analysis</p> <p>At the other end of the spectrum, the average emerging-markets bond fund loses to the index. The other lowest payoff categories</p>
Classic books to get you in the spirit of Halloween
Lifestyle, 4:01
<p>Alfred Hitchcock once said, “There is no terror in the bang, only in the anticipation of it.” He used that theory effectively in his films, causing us to be more frightened by what we imagined than what we actually saw on the screen.</p> <p>A well-written novel can achieve the same effect. In the hands of a skilled writer, we can stay up all night with our minds running wild on what a character looks like, sounds like and acts like.</p> <p>Although there are many fine “scary” modern novels, some of the best are the classic old ones. If you have only seen film versions of these fine books, you owe it to yourself to read the real thing. And, since most of them are in the public domain and are therefore available to read free online, there is no better time to do so.</p> <p>However, if you delve into one of these classic horror stories tonight, be sure to leave a light on.</p> <p>Classic Books – Dracula by Bram Stoker</p> <p>Irish writer Bram Stoker did not invent the idea of the vampire, but he certainly is credited with popularizing the creature that transforms from human to bat form. First published in 1897, Dracula tells the story of a young British solicitor, Jonathan Harker, who becomes involved with a series of terrifying incidents after he visits a castle in Transylvania.</p> <p>This exciting tale of the supernatural has been recreated many times onstage and onscreen, and it continues to find new fans today. An interesting side note: Bram Stoker (whose working title for the book was The Dead Un-Dead) did not follow proper copyright procedures, and his novel has been in the public domain since its original publication.</p> <p>Classic Books – Frankenstein by Mary Shelley</p> <p>Mary Shelley was only 20 years old when she wrote her famous novel about a young college student who creates a monster. Although many people associate the name Frankenstein with the grotesque creature, it is actually the last name of the student who creates the monster.</p> <p>Shelley, who was the wife of Romantic poet Percy Shelley, revealed that the idea for her memorable novel came to her in a dream. She first published Frankenstein anonymously in 1818, and her name did not appear as its author until its second edition in 1823. Hollywood versions of this thought-provoking book do not capture its themes of life, morality and virtue.</p> <p>Classic Books – The Picture of Dorian </p>
People Moves: Barclays names CEO; Ex-Goldman exec becomes co-CEO of TPG
Capital Markets
<p>Barclays names JP Morgan banker as CEO. James Stately is the new CEO of Barclays, beginning Dec. 1. Stately will be responsible for overhauling the U.K. bank as it faces pressure from regulators to be "less capital intensive." Stately worked at JP Morgan for decades, leading the asset management unit until 2009. He then joined BlueMountain Capital Management hedge fund. Wall Street Journal</p> <p>Former Goldman exec joins TPG. Jon Winkelried is coming out of retirement to join TPG as co-CEO. Winkelried left Goldman Sachs in 2009. TPG has long had a co-leader structure. Founder David Bonderman left his co-CEO role last year to become chairman. Founder James Coulter continues to serve as the other co-CEO. New York Times</p> <p>Credit Suisse poaches Barclays bankers. Credit Suisse has hired five new bankers for its Americas Healthcare group. Punit Mehta and Jordan Bliss join as managing directors, and Thomas Burkly, Connie Chiang, and Naeem Merchant join as directors, all beginning in early 2016. This year Mehta and Bliss advised the Israeli Teva on its $40.5 billion acquisition of Allergan's generics unit. Business Insider</p> <p>Ex-Wells Fargo exec moves to Stearns Lending. Thomas Neary has joined Stearns Lending as CIO, responsible for capital markets, secondary marketing, portfolio investment and valuation, and product strategies. Neary comes to the firm from the Homeowners Mortgage Enterprises, where he was president and CEO. He has previously worked for Wells Fargo as executive v.p. for mortgage capital markets.</p> <p>&nbsp;<br /> Photo: ©<br /> &nbsp;</p>
Daily Scan: Stocks fall Friday but post big monthly gains
Capital Markets
<p>Updated throughout the day</p> <p>October 30</p> <p>Global bourses turned in their best monthly performance in more than six years as dreams of stimulus propelled prices higher. The major U.S. indexes fell slightly Friday, but that didn't hurt the month's overall performance. The Dow had its biggest monthly gain in four years with a 8.5% jump. Friday, the Dow was down 0.5%, the Nasdaq dropped 0.4%, and the S&amp;P 500 lost 0.5% for the day. The Shanghai Composite rocketed nearly 11% while the Hang Seng gained 8.6%; the Nikkei jumped 9.75%. The STOXX Europe 600 is on track to tack on 7.7%. Note: daylight savings time ends Sunday morning in the wee hours -- set your clocks back one hour on Nov 1 at 2 a.m. That means more light in the morning for all those runners joining the New York City marathon. The World Series continues this weekend, with the Mets taking on the Royals Friday evening for Game 3. The Royals have won the past two games, so the Mets better win Friday if they want to keep playing into November. Game 4 is scheduled for Saturday evening. Happy Halloween everyone!</p> <p>Here's what else you need to know:</p> <p>GOP lashes out at CNBC, cuts cords. The Republican National Committee has suspended its partnership with NBC News before their scheduled February debate. RNC Chairman Reince Priebus wrote a letter to NBC News Chairman Andrew Lack saying that their relationship was on hold "pending further discussion." The GOP isn't happy with CNBC with the news network's handling of Wednesday's debate. The candidates accused CNBC of bating them with questions that encouraged infighting. Washington Post</p> <p>U.S. retailers want chip and PIN cards. Some big retailers, including Wal-Mart and Target, are increasing efforts to have customers use PINs with new chip-embedded credit cards, but credit card partners aren't thrilled. U.S. banks aren't prepared for the change and say they can't handle the PINs for credit cards. Banks prefer the old school signature approach for identity confirmation. Reuters</p> <p>Four U.N. staff fired for child porn. The staff shared child pornography on work email accounts. Another staff member was fired for transporting 173 kg of marijuana in an official U.N. vehicle. Legal punishment for the cases are left up to authorities in the staff member's home country. BBC</p> <p>Exxon beats earnings expectations. Exxon Mobil posted a profit of $4.24 billion, or $1.01 per share, compared to expectations of 89 cents a share. Profit did fall a whole 47% as the price of oil continues to stay below $50/barrel. CNBC</p> <p>U.S. to send special forces to Syria. The troops will support the anti-government rebels in fighting ISIS. Less than 50 forces will be deployed, but it will be the first time U.S. troops are openly working on the ground in Syria. BBC</p> <p>Valeant severs ties with Philidor; two board members resign. In a stunning turnaround, Valeant distanced itself from the mail-order pharmacy, which wil</p>
People Moves: BlackRock hedge fund manager steps down; Highland Capital hires new director
Hedge Funds
<p>BlackRock hedge fund lead steps down. Tim Webb has resigned from his posts as managing director and CIO of the BlackRock model-based fixed income group, as well as the management of the Fixed Income GlobalAlpha Fund, BlackRock's biggest hedge fund. Webb will now focus on the international fixed income business with Rick Rieder and Kevin Holt. Tom Parker will act as CIO for GlobalAlpha and the model-based unit. Opalesque </p> <p>Highland Capital Management hires new managing director. Jeff Seaver has joined the firm from Loomis Sayles where he worked as co-head of the London office. At the Dallas-based Highland, Seaver will focus on institutional investor relationships, specifically with U.S. pensions and insurance companies.<br /> Photo: ©<br /> &nbsp;</p>
People Moves: Ex-Pimco equities head launches new firm; NYLife hires retail distribution lead
Asset Management
<p>Ex-Pimco equities head launches business. Virginie Maisonnueve has launched Maisonnueve Global Advisors in London to advise investment teams about global trends, business leadership, and digital innovation. Maisonneuve had a brief stint as head of Pimco's equities before leaving in June when Pimco closed its active equities funds. Maisonneuve previously worked at Schroders as head of global equities. Financial News</p> <p>New York Life hires retail distribution lead. Brian Jacobs has joined New York Life's MainStay Investments as head of U.S. retail distribution. Jacobs comes to the firm from Direxion Investments, a private ETF sponsor.</p> <p>Northern Trust names EMEA director. Northern Trust Asset Management has promoted Hazel McNeilage to managing director for Europe, Middle East, and Africa. Previous EMEA lead John Krieg returned to the U.S. in 2014 to become global head of institutional distribution. Pensions &amp; Investments </p> <p>Commonfund names ex-CalPERS exec CIO. Mark Anson has been hired as CIO for Commonfund, effective in January. Anson currently works for the Robert Bass family office. He worked at CalPERS until 2005 when he left to become CIO of Hermes Pension Management. Anson became President of Nuveen Investments in 2007, and moved to the Bass family office in 2013. FinAlternatives<br /> Photo: ©<br /> &nbsp;</p>
Sting's art collection is on the block
Lifestyle, 4:01
<p>More than 200 items from Sting's art collection will be up for auction.</p> <p>The British rock star's collection, compiled over 20 years, will be auctioned by Christie's in London February 24, 2016, Artnet News reports. The pieces range from famous paintings and prints to photography and design furniture from the 20th century.</p> <p>Headlining is Ben Nicholson's "March 55," a 1955 piece estimated to go for $459,891-$763,185. "Jazz" by Henri Matisse will also be sold, with an estimated worth between $381,592 and $534,229. No contemporary art sale would be complete without a Picasso. "Le Corsage a Carreaux," a 1949 lithograph, is estimated to go for between $45,791 and $76,318. Other artists in the collection include Georges Braque, Rene Magritte, Gustav Klimt, and Keith Haring.</p> <p>Sting's sale comes after he and his wife sold their Queen Anne's Gate home in Central London for $28 million to downsize to a smaller apartment.<br /> Photo: Alberto Cabello</p>