EU Carbon Market Is at Risk of Total Collapse, Lawmaker Says

EU Carbon Market Is at Risk of Total Collapse, Lawmaker Says
By Ewa Krukowska - Jan 22, 2013

The European Union’s emissions trading system, the world’s largest, is at a risk of “total collapse” and a draft measure to fix it must become a top priority for governments, a member of the EU Parliament said.

http://www.bloomberg.com/news/2013-01-22/eu-carbon-market-is-at-risk-of-total-collapse-lawmaker-says.html

Tail Risk Hedging: It Pays to Be Countercyclical

Tail Risk Hedging: It Pays to Be Countercyclical

Vineer Bhansali

· The cost of hedging in absolute terms is back to pre-crisis lows.

· Quiet markets, low volatility and a lack of visible risks on the horizon can lead to complacence and increasingly dangerous, leveraged positions.

· Many credit markets have been direct beneficiaries of the belief in seemingly lower tail risks in equity markets, and could also end up suffering if there is a re-emergence of widespread fear of, and upward repricing of, these tails.

· Investors should consider taking this opportunity to reload their hedges as soon as they can.

Chile’s Piñera Sees a New Era of European-Latin American Relations

http://www.institutionalinvestor.com/

Chile’s Piñera Sees a New Era of European-Latin American Relations

President says region’s economic strength will enable Latin leaders to discuss trade and investment as equals with their EU counterparts.

By Jonathan Kandell

Pension Funds Reap Healthy Returns from Alternative Fixed Income

http://www.institutionalinvestor.com

Pension Funds Reap Healthy Returns from Alternative Fixed Income

In their quest for higher yields in the wake of the financial crisis, pension funds have been seeking alternatives to traditional bond investments. As conventional lenders pull back, hedge funds and asset managers are meeting this demand by offering loans and packaging the debt as alternative fixed-income products.

By Frances Denmark

Argentina: The merchandise trade surplus rose to USD 12.7 bn in 2012

Argentina: The merchandise trade surplus rose to USD 12.7 bn in 2012

Florencia Vazquez - Market Economics
Latam Macro Snapshot | 23 Jan 2013 20:25 |

The merchandise trade surplus was reported to have stood at USD 0.53 billion in December. The reading stood fairly in line with our forecast and the median estimate from the Bloomberg survey (USD 0.57 and 0.48 billion, respectively).

Gas Natural SDG SA : Gas Natural Fenosa is to invest 39 million euros in gas distribution in Andalusia in 2013

Gas Natural SDG SA : Gas Natural Fenosa is to invest 39 million euros in gas distribution in Andalusia in 2013
01/23/2013| 07:11am US/Eastern

Gas Natural Andalucía, the energy multinational's distribution subsidiary, invested 34.6 million euros in Andalusia during the last financial year.

With 388,000 supply points in a network of over 4,700 km in that Spanish region, the company plans to invest close to 10 million euros in the Seville province in 2013.

Bechtel awarded FEED contract for a new LNG project in Mozambique

Monday, Jan 21, 2013

HOUSTON, Jan. 18, 2013 /PRNewswire/ -- Bechtel has been selected by AnadarkoMocambique Area 1, Limitada to perform a front end engineering and design (FEED) for a new liquefied natural gas (LNG) facility in the Republic of Mozambique. This is the first LNG project in the country.

Asia Chart Alert: China: Working-age population falls in 2012; sooner than expected

Asia Chart Alert: China: Working-age population falls in 2012; sooner than expected

Potential growth has likely slowed to 7.0-7.5%, while we expect inflation to exceed consensus levels in 2013.

Searching for ‘Safe Spread’ with PIMCO’s Diversified Income Strategy

Searching for ‘Safe Spread’ with PIMCO’s Diversified Income Strategy

· Diversified Income can add yield potential to global credit portfolios while managing risk in different market environments.

· Many investors are reluctant to invest in more volatile asset classes after the financial crisis.

· The search is on for “safe spread” – sectors that we believe are most likely to provide attractive yields while withstanding the fluctuations of a wide range of possible economic scenarios.

· PIMCO’s Diversified Income Strategy, a diversified blend of corporate and emerging market securities, seeks to offer higher yields without taking on excessive additional risk.

Chile: BCCh kept policy rate unchanged at 5.0% and issued little changed statement

Chile: BCCh kept policy rate unchanged at 5.0% and issued little changed statement

Florencia Vazquez - Market Economics
Latam Macro Snapshot | 17 Jan 2013 21:47 |

Chile’s central bank decided to keep the policy rate unchanged at 5.0% at today’s monetary policy meeting. The decision stood in line with both our forecast and the consensus. January is the 12th straight month of no changes to the policy rate after the monetary authority eased 25bp in January 2012.