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Angelina Jolie, Brad Pitt light up red carpet at WSJ Innovators Award 2015
Lifestyle
<p>There was plenty of razzle and dazzle at the WSJ Magazine Innovator Awards at the Museum of Modern Art on Wednesday evening. The clear stars of the evening: Angelina Jolie and Brad Pitt, dressed in his and hers black. The dinner, described as an intimate sit-down affair, celebrated the work of eight extraordinary people in eight different fields.<br /> Twitter soaked up Brangelina.</p> <p>“I feel that to be innovative is to be willing to stand alone."-Angelina Jolie @YahooStylehttps://t.co/xppPC5Zc2U#WSJInnovators<br /> — Kristin T. Studeman (@KristinTice) November 5, 2015</p> <p>Angelina Jolie's Tom Ford dress is pretty uneventful until you see the back #WSJInnovatorshttps://t.co/mjzRxTaptIpic.twitter.com/CI07tfOEMc — Red Carpet Fashion (@Fashion_Critic_) November 5, 2015</p> <p>The other winners didn't look all bad either and included:</p> <p> Angelina Jolie Pitt, Entertainment/Film Innovator<br /> Stewart Butterfield, CEO, Slack, Technology Innovator<br /> Mark Parker, CEO, Nike, Brand Innovator<br /> Miuccia Prada, Prada, Fashion Innovator<br /> Richard Serra, Art Innovator<br /> Karl Ove Knausgaard, Literary Innovator<br /> Stewart Butterfield, Co-founder &amp; CEO, Slack , Technology Innovator<br /> Thomas Heatherwick, Design Innovator</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>Photo: JLO8</p>
UK politicians back proposal to link bank pay to hiring women
Capital Markets
Members of Parliament are supporting the proposals of Virgin Money CEO Jayne-Anne Gadhia to discourage "laddish" behavior in finance and push more women to executive roles. Gadhia wants bonuses for finance executives be linked to targets for the appointment of women to senior positions, reports the Financial Times. "Research shows that having more women at board level improves the bottom line.
Yellen holds the cards for rate-sensitive ETFs
Asset Management
<p>The Federal Reserve passed on raising interest rates following its October meeting, but Federal Reserve Chair Janet Yellen's comments before Congress earlier Wednesday indicate the Fed chief is mulling a boost to borrowing costs in December.</p> <p>How investors treat rate-sensitive stocks and exchange-traded funds this time around remains to be seen, but conventional wisdom usually dictates that as Treasury yields rise in anticipation of higher interest rates, market participants ditch sectors such as consumer staples, real estate investment trusts (REITs) and utilities.<br /> Recent U.S. Equity ETFs Performances<br /> Last month, U.S. equity ETFs added $10 billion in new assets, nearly triple the $3.7 billion that flowed into international equity funds. However, international stock funds retain their year-to-date advantage over their U.S.-focused rivals by a margin of $23.1 billion to $17.7 billion, according to State Street Global Advisors data.</p> <p>Sector ETFs were once again popular with investors in October, and against the backdrop of low interest rates, market participants piled into rate-sensitive sector funds. For example, utilities ETFs added nearly $210 million in new assets last month, according to State Street data.</p> <p>Read more at Benzinga.<br /> Photo:Marilyn Roxie</p>
Daily Scan: China, up 20% from summer low, back in bull territory; Japan Post ebullience boosts Nikkei
Capital Markets
<p>Updated throughout the day</p> <p>November 5 </p> <p>Asian markets were in a generally buoyant mood on Thursday, despite Fed Chair Janet Yellen's more hawkish comments overnight about a possible interest rate hike. China shares closed strongly, with the Shanghai Composite Index  up 1.8% at 3,522.82 and the Shenzhen Composite Index of mid- and small-cap stocks 0.2% higher at  2,093.47 following its 5% surge on Wednesday. Both markets are now in bull territory, having bounced back more than 20% from the summer's lows. Investors were encouraged by Chinese policy makers' proposals at last week's annual Plenum for more competition among state-owned industries as well as hopes of greater cross-straits collaboration ahead of  Saturday' s meeting between Chinese President Xi Jinping and Taiwanese President Ma Ying-jeou</p> <p>Here is what else you need to know:</p> <p>China confirms historic meeting with Taiwan leader. President Xi Jinping is set to meet Taiwanese President Ma Ying-jeou in Singapore this Saturday, Beijing confirmed through its Xinhua news agency. The tete-a-tete would be the first for the  leaders from either side of the Taiwan Strait since 1949. Taiwanese are already planning a protest. SCMP (paywall)</p> <p>Nikkei buoyant after Japan Post IPO. The Nikkei Stock Average  rose 1% to 19,116.41, maintaining Wednesday's momentum that was prompted by Japan Post's successful initial public offering.  Australia’s S&amp;P ASX 200 dropped 0.9%, South Korea’s Kospi fell 0.2%, the Hang Seng was flat.</p> <p>Japan Post, the biggest IPO of the year, rockets 26% on first day of trading. Following its long-awaited and successful stock market debut, Japan Post Bank says it will use its vast pool of deposits to become a more aggressive international investor, outlining plans to push more of its $500 billion investment fund towards global risk assets. The $11.9 billion offering was the biggest since the $25 billion Alibaba IPO in 2014. Financial Times (paywall)/ AlJazeera</p> <p>But Toshiba shares fall after reporting a loss. Its shares fell nearly 9% on Thursday morning after a report indicated the company will issue its first half-year operating loss in six years. Toshiba, whose activities span constructing nuclear power stations to producing consumer goods like televisions, was expected to issue earnings earlier this week but is instead publishing them on Saturday, an unusual move. Financial Times (paywall)</p> <p>Janet Yellen calls a December rate hike a "live possibility." A rate hike decision hasn't been made, and still relies on upcoming data, Yellen cautioned, but she voiced optimism about economic growth. Yellen also told the House Financial Services Committee that capital for the eight biggest U.S. banks has almost doubled to about $500 billion. They still need to work on compliance and risk-management. New York Fed President William Dudley says he would "completely agree" with Yellen's comments about December. CNBC, Reuters</p> <p>Two-year note yields back up after Yellen's remarks. The note is viewed as a proxy for Federal Reserve policy and the fed funds rate. The yield on the notes have been backing up since October 28 when the Fed released its notes on its meeting, hinting at a pre-Christmas tightening. The yield climbed to 0.816%, the highest since April 2011. Wall Street Journal (paywall)</p> <p>Factory collapse kills 18 in Pakistan. Up to 150 people were trapped and at least 18 were killed Wednesday when a shopping bag manufacturing factory collapsed in Lahore, Pakistan. Only 40 injured people have been recovered so far. Reuters</p> <p>Facebook earnings wow. Facebook reported earnings of 57 cents per share on $4.5 billion in revenue for the third quarter. Analysts expected Facebook to post 52 cents per share on $4.37 billion in revenue. Daily active users of the social media platform have crossed the 1 billion mark for the first time. Monthly active users are up to 1.55 billion, a 14% rise from last year. CNBC</p> <p>Russian airplane crash looks like an explosion. No one knows if  the accident was caused by
Nevermind the insider trading, Xiang, what's with that awful jacket?
Lifestyle
<p>&nbsp;</p> <p>When Chinese hedge fund guru Xu Xiang had his collar felt by the authorities last Sunday, China's internet users lost their minds. But it wasn't so much his alleged insider trading that had them irked as his shoddy dress sense.</p> <p>According to the South China Morning Post, the offending clothing item in question was an ill-fitting Armani jacket. Xiang was snapped wearing the lab coat-like blazer when he was arrested.</p> <p>Not only did ther 37-year old -- who manages 10 billion yuan worth of assets -- come in for a ribbing over his wrinkled attire, but he was also upbraided for his naff haircut. </p> <p>Chinese bloggers have jokingly asked how a dentist came to be arrested for stock market manipulation, or whether Xiang was really being arrested for crimes against fashion.</p> <p>If you think you can rock the Georgio Armani jacket better than our sartorially challenged Xiang, it reportedly retails at about $4,000. </p> <p>Photo: Upupa4me</p> <p>&nbsp;</p>
ING mulls China online banking venture
FinTech
<p>Dutch financial services giant ING says it's looking into the prospect of launching a joint online banking venture in China with its long-term local partner Bank of Beijing.</p> <p>Reuters reports that ING CEO Ralph Hamers let slip the plans during an earnings call on Wednesday. The two institutions reportedly signed an MOU last week and are now researching the feasibility of the venture. </p> <p>This is not the first time ING has dabbled in fintech ventures, after all it was an early backer of PayPal, but like many of its banking peers the Dutch lender has been pushing extra hard on the fintech front in recent months. </p> <p>ING launched its first fintech accelerator in Belgium in July and just chipped in for a $135 million Series E round of funding for U.S. fintech startup Kabbage last month. If this latest venture comes to fruition, however, it will be will be ING’s first notable fintech play into Asia.<br /> Photo: ING Nederland<br /> &nbsp;</p>
China hedge fund scandal claims its first victim
Hedge Funds
<p>The arrest of “China’s Warren Buffet”, AKA hedge fund guru Xu Xiang, has battered both his reputation and his investments. One of biggest losers this week was consumer goods company China Seven Star which saw its share price plummet following Xiang’s arrest for insider trading on Sunday.</p> <p>Barron’s Asia reports the the company saw its share price slump by nearly 40% on Tuesday morning, from 1.29 Hong Kong dollars on Friday,  to 0.75 following a trading halt on Monday. The stock, which rallied 369% this year until Friday, has since a recovered to 0.98.</p> <p>Xiang is the company’s second largest stakeholder with a 9.7% share. China Seven Star said in a filing it tried to contact Xu unsuccessfully.</p> <p>According to South China Morning Post, Xiang, was widely believed to be safe after being interrogated earlier this year. His firm, Zexi Investment, saw its hedge funds record at least 140% growth in net asset value for 2015. Zhou Ling, a hedge fund manager at Shanghai Shiva Investment, told the paper.<br /> "He was viewed as the best of the best before the investigation into him was announced. His detention shows there is no God in this market at all.”<br /> Photo: Phillip Taylor</p>
Chinese A-shares may make it into key indexes sooner than you think
Asset Management
<p>&nbsp;</p> <p>Investors have expected the MSCI to include China A-Shares in its benchmark indices twice during the past two years. But each time, the index compiler has backed off, pointing to barriers to foreign investor access.</p> <p>Recent state intervention (or manipulation) in the markets seemed to put the kibosh on their inclusion any time soon. But, fund managers might be missing a trick.</p> <p>“Many investors are underestimating the impact of the inclusion of China A-shares in global emerging market benchmarks and may be caught off guard when it happens,” reports AsianInvestor, citing fund management experts. (paywall)</p> <p>“This is despite the move by U.S. fund giant Vanguard to steadily incorporate mainland stocks into its EM exposure.”</p> <p>Wang Qi, a partner at Shanghai-based Mega Trust Investments notes that the Chinese government’s intervention in the stock market in the summer means that many money managers assume that A-Share inclusion in the MSCI benchmark indices is now in the distant future.</p> <p>“However, if you look into the details of the review process, this is not a major concern for the index providers,” he says.</p> <p>The MSCI is likely to conclude its next assessment in the first half of next year.<br /> Photo: Jim Winstead<br /> &nbsp;</p> <p>&nbsp;</p>
Daily Scan: China, Japan hold on to gains; Asia currencies tumble
Capital Markets
<p>Updated throughout the day</p> <p>November 5</p> <p>Major asian markets saw a strong start to the day with China’s Shanghai Composite Index and Japan's Nikkei 225 showing gains of 2.69% and 1.03%, respectively, in the morning. Calls for market liberalisation following China's high-level meeting last week, and Japan's blockbuster Japan Post IPO yesterday helped both markets defy the downer triggered by Federal Reserve chief Janet Yellen, who yesterday hinted at a December interest rate hike. </p> <p>Elsewhere, South Korea's Kospi dropped 0.4%, Australia's ASX 200 fell 1%, while stocks in Taiwan, Singapore and other Southeast Asia also fell. Emerging currencies including the Malaysian ringgit, Chinese yuan, South Korean won and Indonesian rupiah are also down against the greenback today after gaining several days on the trot. </p> <p>Here is what else you need to know:</p> <p>Toshiba shares fall after reporting a loss. Its shares fell nearly 9% on Thursday morning after a report indicated the company will issue its first half-year operating loss in six years. Toshiba, whose activities span constructing nuclear power stations to producing consumer goods like televisions, was expected to issue earnings earlier this week but is instead publishing them on Saturday, an unusual move. Financial Times (paywall)</p> <p>China confirms historic meeting with Taiwan leader. President Xi Jinping is set to meet Taiwanese President Ma Ying-jeou in Singapore this Saturday, Beijing confirmed through its Xinhua news agency. The tete-a-tete would be the first for the  leaders from either side of the Taiwan Strait since 1949. Taiwanese are already planning a protest. SCMP (paywall)</p> <p>Janet Yellen calls a December rate hike a "live possibility." A rate hike decision hasn't been made, and still relies on upcoming data, Yellen cautioned, but she voiced optimism about economic growth. Yellen also told the House Financial Services Committee that capital for the eight biggest U.S. banks has almost doubled to about $500 billion. They still need to work on compliance and risk-management. New York Fed President William Dudley says he would "completely agree" with Yellen's comments about December. CNBC, Reuters</p> <p>Factory collapse kills 18 in Pakistan. Up to 150 people were trapped and at least 18 were killed Wednesday when a shopping bag manufacturing factory collapsed in Lahore, Pakistan. Only 40 injured people have been recovered so far. Reuters</p> <p>Facebook earnings wow. Facebook reported earnings of 57 cents per share on $4.5 billion in revenue for the third quarter. Analysts expected Facebook to post 52 cents per share on $4.37 billion in revenue. Daily active users of the social media platform have crossed the 1 billion mark for the first time. Monthly active users are up to 1.55 billion, a 14% rise from last year. CNBC</p> <p>Russian airplane crash looks like an explosion.</p>
Larry Fink tells AB CEO to 'learn more' about ETFs
Asset Management
<p>BlackRock CEO Larry Fink came out swinging against rival AllianceBernstein Tuesday, telling its CEO Peter Kraus to "learn more about ETFs," Reuters reports. Kraus told the New York Times that exchange traded funds are "not safe and your clients need to understand that," while discussing the market volatility of Aug. 24.<br /> "He should learn more about ETFs," Fink responded on a panel at the New York Times' DealBook Conference, when asked about Kraus' comments in the upcoming article. "I would not be as hysterical." Fink, whose iShares division manages $1 trillion in ETFs, said the trading issues on Aug. 24 were temporary and limited, but "a good wake-up call" nonetheless.</p> <p>Photo: WorldSeriesBoxing </p>