The Corliss Group, If a finance company sector type meltdown

The Corliss Group, If a finance company sector type meltdown

Moves by the Serious Fraud Office (SFO) and other regulators to detect crime earlier through intelligence gathering and co-operation would see a finance company sector style meltdown acted on much earlier if it was to happen again, says the SFO’s acting CEO Simon McArley. In a Double Shot interview with McArley noted there had been plenty of rumours of problems within finance companies around before they started collapsing.


“If we’d applied an intelligence led approach at that point, and if that had worked across all the regulatory agencies, we may well have been able to intervene at a much earlier point,” McArley said. Asked how much earlier McArley noted that when he was working as a lawyer in 2001-02 there was already talk that all was not right with some finance companies.


“What we want to do is to be at that position, not necessarily conclusively drawing any conclusions, but being able to get together with our sector partners – the FMA (Financial Markets Authority) and other organisations and say ‘look we need to have a close look at this. We need to keep an eye on what’s happening’,” said McArley.


“I think we’re well placed to do that. Both the FMA and ourselves have invested quite heavily in that intelligence part of the equation, so we’re well on the way to it. But it’s something we can keep working on.”


Source:  The Corliss Group


The Corliss Group, Stocks Surge Past Economic Benefit on Tokyo Olympic Pick

The Corliss Group, Stocks Surge Past Economic Benefit on Tokyo Olympic Pick

Japanese shares seen as benefiting from the 2020 Olympics surged too far, too fast after Tokyo won hosting rights, with the rally outweighing the estimated economic impact, according to Shinkin Asset Management Co.

About 13 trillion yen ($131 billion) was added to the market capitalization of the Topix index last week after the city’s winning bid was announced, data compiled by Bloomberg show. One-third to half the gains were from investors trading on the Olympics news, Shinkin Asset said. The Tokyo Metropolitan Government projects the event will boost Japan’s economy by 2.96 trillion yen in the next seven years.

“People were surprised Tokyo got it after reports Madrid might win, so the reaction was big,” said Naoki Fujiwara, Tokyo-based chief fund manager at Shinkin Asset, which oversees about $6 billion. “Investors bought shares without thinking of how much impact the games would have on companies’ profits.”

The Topix climbed 3.7 percent in the two days after Tokyo’s selection. Shares had fallen on Sept. 6 after Spanish newspaper El Mundo said Madrid was set to win the hosting rights.

Gauges (TPX) tracking builders, developers, service industries, airlines, logistics stocks, steelmakers, machinery companies and cement producers listed on the Topix added a combined 4.9 trillion yen in market value last week, data compiled by Bloomberg show. That’s about 37 percent of the total increase.


Source: The Corliss Group, Stocks Surge Past Economic Benefit on Tokyo Olympic Pick