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Hackles were raised across the managed futures industry this month by a Bloomberg exposé of high fees and poor performance. (One we used to riff on diversification as the asset management bait and switch).
Attain Capital has taken to its blog to respond. You can read their extensive and detailed response, including rebuffs from the editors of Op-Ed pages here, but we thought we would summarise the main points and then add a few of our own below. Read more
Finland’s Chancellor of Justice, Jaakko Jonkka, has criticised the decision to keep the Greek transaction under wraps in the first place: Read more
Up until now the FTC has been the ghost in the machine as the debate about Herbalife’s business model has raged. Often invoked and implored, the direct seller’s share price has in many ways been a referendum on any ultimate action or inaction from the regulator.
However, the debate has expanded beyond Herbalife to look at practices across the whole direct sales industry, and pressure is rising on the FTC to pick a side.
Indeed, on Thursday a significant coalition of consumer activists, economists, lawyers, entrepreneurs and former participants in mutli-level marketing programmes will submit a petition to the Federal Trade Commission calling on it to take enforcement action and set new rules for the industry. Read more
The Wall Street Journal has been digging deeper into the metals warehouse logjam issue, and discovered that both Alcoa and Rusal may be beneficiaries of the situation due to the physical premiums they collect when end-users are forced to go direct to producers for metal so as to avoid queues.
According to the WSJ the aluminium makers have reaped as much as $1.4bn in revenues from higher fees due to the logjam.
Live markets commentary from FT.com
Credit Suisse to overhaul interest rates trading business || Pinterest value leaps 52% to $3.8bn || UK peer-to-peer lender targets the US || US Congress moves to tighten money laundering laws || US jury rules against BoA in mortgage trial || Draghi warns that some European banks need to fail a series of ECB health checks || UK car output tops 1.5m for first time since 2008 || Alcoa and Rusal Are beneficiaries of warehouse logjam || Angela Merkel’s mobile phone may have been the target of US surveillance || Markets Read more
Two charts to nurture some hope this morning.
First, a reminder that when long established trends turn, they can do so very quickly. And second, if there is a real turn in the US, there is plenty of scope for activity to pick up. Read more