Reuters reports that Standard Chartered bank has set aside $900 million to cover fines resulting from regulatory investigations in the United States and Britain. The news agency, or the PR bods at the bank, then helpfully add: ‘potentially drawing a line under probes which have dogged the bank for years’. Good luck. Yesterday it was UBS’s turn which, after a six-week trial in France, was deemed to have helped clients evade taxes and using ‘James Bond’ tactics to lure the wealthy in. Result: 3.7 billion euro fine and 800 million in damages.
This morning the Financial Times reports that Swiss asset manager GAM has fired its star portfolio manager Tim Haywood, the fixed income director of its unconstrained/absolute return fund. In a terse statement, GAM said: ‘following the conclusion of the investigation and the disciplinary proceedings, the suspended investment director has now been dismissed from the company for gross misconduct’. The firm also reported annual losses of CHF 929 million after having seen a rush of redemptions last year which forced the firm into freezing customers from taking even more money out.
DAX 30
Another index backing up just that bit more than I had bargained for.
SHORT TERM TRADER: Reluctantly stopped myself out on yesterday’s close above 11400.
POSITION TAKER: Stopped out here too.
FTSE 100
Hovering nervously at this year’s highs.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Ridiculous, creepy little moves and we’re back at November and December’s highs.
SHORT TERM TRADER: Short at 2775; stop a bit above 2820. Target 2600.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Don’t quite see the logic behind MPs resigning from their political party and remaining in their seats in parliament. Luckily it hasn’t affected cable.
SHORT TERM TRADER: Long at 1.2920; stop below 1.2900. Target 1.3150.
POSITION TAKER: Square.
EURO/US DOLLAR
One small step at a time but the euro continues trying to lift itself up off last year’s lows.
SHORT TERM TRADER: Long at 1.1305; stop below 1.1275. Target 1.1480.
POSITION TAKER: Square.
GOLD
Overbought, a small shooting star yesterday, trading well above the old trend channel. Watching for more topping signs.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.