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Investors flee risk as bear markets multiply: BAML

“U.S. equity funds saw outflows of $2.6 billion, a turnaround from the previous week when U.S. funds were leading in terms of inflows” reports businessinsider.com. Bear markets were multiplying with European banks, European autos and copper in that category.BAML strategists also noted more than half the stocks in MSCI’s world index (1,254 out of 2,273) are in bear territory.Global equities suffered $3.6 billion of outflows while bonds saw $2.3 billion inflows as investors moved out of riskier assets, the BAML strategists said, citing data from EPFR, a fund flows data…

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Tech still all the rage while bears prowl emerging markets: BAML survey

“Overall, global investors became more cautious in August, raising their cash allocation to 5 percent from 4.7 percent” reports businessinsider.com. Among risks to global markets, investors said for the third month in a row that trade war was the most concerning.After six months of falling allocations to euro zone equities, investors added to the region again.Thomson Reuters By Helen Reid LONDON (Reuters) – Global investors remain overwhelmingly bullish on U.S. and Chinese tech shares, while short positions on emerging equities are growing increasingly popular, Bank of America Merrill Lynch’s latest…

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Inside the power struggle at the top of Citigroup’s equities unit that’s a window on the latest Wall Street fad

“At Citigroup, the senior equities trader Mike Pringle took some early steps to establish the bank’s central risk book” writes Dakin Campbell for businessinsider.com. But this was a sign of something larger — a symbol of the increasingly important role that central risk books play in global cash equity markets.Citigroup lost a senior central risk trader in Dariusz Kowalewski to the hedge fund Citadel in October.”Banks are looking at: How do I tie my central risk book capital base into my clients’ needs and order flow?”.  Source: businessinsider.com Share This:

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Inside the struggle at the top of Citigroup’s equities unit that’s a window on the latest Wall Street fad

“At Citigroup, senior equities trader Mike Pringle took some early steps to establish the bank’s central risk book” writes Dakin Campbell for businessinsider.com. But this was a sign of something larger, a symbol of the increasingly important role that so-called central risk books play in global cash equity markets.Citigroup lost a senior central risk trader in Dariusz Kowalewski to hedge fund Citadel in October.Central risk books sprouted out of the rubble of the financial crisis, after firms like Goldman Sachs moved more quickly and effectively to respond to market developments. Source:…

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The time is right for a rotation out of growth stocks, asset manager says

“He added that value and growth equities have alternated market leadership for decades and the latter has been in control since 2008” writes David Reid for cnbc.com. The prices of so-called growth and momentum stocks have become too high and it’s now time to look at value-based equities, according to one expert.A growth stock is one that tends to increase in capital value rather than yield high income.The analyst said some investors are admitting their stocks are overvalued but maintain holdings by arguing that they can’t find any attractive investments…

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A top Morgan Stanley electronic trading exec is out

“A top electronic trading executive at Morgan Stanley has left the firm after 15 years, according to people familiar with the matter” writes Frank Chaparro for businessinsider.com. Brian Gallagher, a m anaging director of sales in Morgan Stanley’s equities electronic trading business who was with the firm since 2003, exited the bank in recent weeks.A Morgan Stanley spokesman declined to comment on Gallagher’s departure from the bank and Gallagher did not respond to a request for comment.Gallagher was part of Morgan Stanley’s star equities division which is the top stock…

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India stocks hit record highs as experts consider their ‘safe haven’ potential

“As India’s stock markets soar to record highs, equities could be in a sweet spot that has prompted one emerging market investor to consider the asset class a “safe haven.”” writes unknown author for cnbc.com. Nonetheless, Harrison added the caveat that India could only be considered a safe haven in what is “a very negative overall environment for emerging market assets.”. It is thanks to a combination of factors that India is a “relative safe haven for equity investors,” according to Jon Harrison, managing director for emerging markets macro strategy…

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Barclays has raided Credit Suisse yet again for a senior stock-trading hire as it continues to ramp up its equities business

“Kevin O’Connor is joining Barclays equities team as head of electronic equities origination for the Americas, the British lender announced Monday” writes Alex Morrell for businessinsider.com. REUTERS/Peter Nicholls Barclays has hired a new electronic equities executive as the bank continues to invest in its fast-growing stock trading business.O’Connor is the latest in a hiring spree of high-level executives conducted by Stephen Dainton, who joined in September from Credit Suisse as global head of equities.Barclays’ CEO Jes Staley, who has made major investments in the firm’s equities franchise.The new hire further…

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Goldman Sachs wades into the equity derivatives hiring frenzy, poaching an up-and-coming trader from Barclays

“REUTERS/Danny Moloshok Goldman Sachs has waded into the equity derivatives hiring frenzy, poaching an up-and-coming trader from Barclays” writes Alex Morrell for businessinsider.com. Equity derivatives traders have become the focus of an intense Wall Street hiring battleground, with more than 40 moves at the level of vice president or higher in equity derivatives in the US this year.The bank has hired David Wernert, formerly an equity derivatives trader at Barclays focused on single-stock trading, according to people familiar with the matter.Goldman lagged behind peers, reporting equity trading revenues of $1.89…

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Goldman beats earnings and revenue expectations, but stock falls as equities revenue misses

“GS, +2.22% fell 1% in premarket trade Tuesday, although the investment bank reported second-quarter earnings and total revenue that rose above expectations, although equities revenue missed” writes Reporter Editor for marketwatch.com. This replaces a previous item that incorrectly reported total revenue.Institutional client services revenue grew 17% to $3.57 billion, just shy of the FactSet consensus of $3.63 billion, as fixed income, currency and commodities (FICC) revenue rose 45% to top expectations while equities revenue was flat to miss expectations.Net income grew to $2.35 billion, or $5.98 a share, from $1.63…

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