Showing posts with label London. Show all posts
Showing posts with label London. Show all posts

Hamas homemade rocket industry bypasses crumbling supply lines

(GNN) - Palestinian Hamas fighters once tried in vain to copy Israel's iconic submachine gun, the Uzi. Twenty years on, their homemade rockets streak more than 100 km (60 miles) from Gaza toward the northern Israeli city of Haifa.
At least 180 Palestinians have died in eight days of cross-border fighting between the guerrillas and the vastly stronger Israeli military. Israel has so far suffered one fatality, but this contrast in casualties has not detracted from Hamas's pride in its technical progress.

The variety and range of its rocket arsenal - both closely guarded secrets - have steadily improved since Hamas Islamists emerged as an underground militant group in 1987.

Ahmed Jaabari - the chief of Hamas's armed wing who was assassinated in an Israeli air strike in 2012 - masterminded the group's domestic manufacturing capability that helped allow it, analysts say, to keep launching salvoes at Israel despite the Israeli-Egyptian blockade on supplies to Gaza.

A commander in Hamas's armed wing told Reuters that before Jaabari rose to a higher military echelon in 1996, the group had only a small number of AK-47 rifles and a single rocket-propelled grenade.

"Jaabari upgraded Hamas's capability from a rifle to a rocket that hit Tel Aviv; this is in brief what he did," the commander, who declined to be identified, said.

In 2002 Jaabari succeeded the group's chief commander Salah Shehada, whom Israel killed, along with his aide and 15 other civilians, when it bombed a residential building in Gaza City.

Now, in the worst outbreak of Israeli-Palestinian violence in two years, Israel's military says it has hit Hamas's rocket launchers and storage facilities hard. It made similar statements in previous flareups, but rocket fire from Gaza has persisted, in varying degrees, over the years.

Engineers and fighters repeatedly died in attempts to build and launch the rockets.

Hamas gauged the range of its first homemade rocket, the Qassam, by firing it out to sea before listening to Israeli news alerts and receiving reports from Palestinian spotters inside Israel, Hamas sources told Reuters.

Thousands of Palestinians and hundreds of its fighters were killed in an uprising that culminated in Israel's evacuation of its soldiers and settlers from Gaza in 2005, and Hamas's seizure of the coastal Strip from Palestinian rivals two years later.

PRIDE

The Israeli-built and partially U.S.-funded Iron Dome defense system has shot many of the rockets destined for urban areas out of the sky.

But Hamas takes pride in their upgraded firepower and the political toll they say it takes on the enemy.

"What you are seeing today is not metal and power, what you see today is blood. Thousands of people paid with their lives so that we and our people can see this day - the day Israeli leaders stood before their nation to say: 'Sorry, Tel Aviv was hit'," the commander said, speaking before the latest conflict.

Hamza Abu Shanab, an expert on Islamist groups in Gaza, said Israel, which maintains a naval blockade of the territory and tight restrictions at its land border, faces a big problem.

"It cannot end Hamas rockets because Hamas does not depend on imported weapons and is making its own, so fighters may be engaged in combat and others are making them the ammunition," he said. "Israel cannot estimate the size of Hamas's arsenal because the tools are being made locally. So for every rocket fired, another ten are made."

Hamas and Islamic Jihad, another more militant armed faction, have announced new grades of longer-range rockets delivering heavier payloads in the latest conflict and boast of "surprises" from other, secret ordnance.

The Israeli military said on Monday it struck down a drone flying in its airspace which Hamas called the "Ababeel" and described as its first bomb-carrying unmanned aerial craft.

"(The armed groups) have unveiled new rockets and launchers that they have made themselves: a development that makes the militants less dependent on rockets that are smuggled into the Gaza Strip to threaten Israel's main population centers," according to Jane's Intelligence, a London-based consultancy.

Besides Israel's tighter curbs on Gaza-bound imports since Hamas took power there in 2007, Egypt has demolished hundreds of smuggling tunnels through which weapons and commercial goods had been brought. Hamas lost an important ally in the Egyptian Muslim Brotherhood, which was ousted by the military last year.

Relations with Iran, widely believed to be a main patron for Hamas's military wares, may also have suffered after Hamas refused to back Tehran's ally, President Bashar al-Assad, in Syria against mainly Islamist rebels.

The setbacks may not have dealt much of a blow to Gaza militancy, which remains a dear cause for local and Arab donors.

Reuven Ehrlich, an Israeli expert on militant groups, said Hamas's Arab donors help to launder money for the movement - cash that is prioritized for military uses despite Gaza's economic crisis.

"They are still getting money and the priority for the money they have is the military priority ... The money has no smell, nobody can control how the money flows," Ehrlich said.

(GNN)(Reuters)(AIP)(Writing by Noah Browning, Editing by Jeffrey Heller and David Stamp)

Index Leads $7M Round In Banking Benchmark Startup, Credit Benchmark

London has chalked up another fintech investment today: Index Ventures has led a $7 million Series A round in Credit Benchmark, a startup that’s looking to improve financial market benchmarks by aggregating anonymized credit risk data from multiple banks.
The aim is to improve industry transparency around credit risk and create more precise and up-to-date consensus views by aggregating the internal assessments of large banks on their institutional borrowers’ credit worthiness. Its system specifically produces estimates for probability of default and loss given default – used for risk management and more broadly as benchmarks in the financial industry.

Bottom line: a dozen banks’ risk assessments should be better than one.  (Although, to make a counter point, the financial crisis was arguably the result of skewed group-think. But hey, maybe banks have learned a few lessons since then… Let’s hope so, eh.)

Credit Benchmark describes it system as a “contributed data” model. The data is rigorously anonymized — it says it has created “robust technological, security and legal frameworks for managing contributed data, guaranteeing the confidentiality of individual contributors’ estimates and allowing it to act as a trusted intermediary” — and has managed to sign up a dozen global banks in the US, UK and Continental Europe committed to supplying data thus far.

It adds that it expects to offer “comprehensive coverage” of the entities that matter most to financial institutions – e.g. funds, emerging market corporates and SMEs where it argues there is currently little or no data from existing sources, such as ratings agencies and credit default prices. So it’s basically looking to offer broader data that’s more frequently updated than the hoary old credit ratings agencies.

As well as announcing its funding raise, Credit Benchmark is launching its commercial service for banks today, having completed a proof of concept with a smaller group of banks.

Credit Benchmark is founded by serial entrepreneurs Mark Faulkner and Donal Smith, who applied their contributed data model in their previous company, a securities analytics startup called Data Explorers that was acquired by Markit in 2012.

Commenting on the funding round in a statement, Jan Hammer, partner at Index Ventures, said: “It would be difficult to find more experienced and talented founders than Donal and Mark. Together with CEO Elly Hardwick, they have the proven track records —  in developing and managing contributed data models — required to work with the elite among global banks.

“What’s so exciting to us is that it’s already clear that ultimately it’s not just banks that will derive value from access to Credit Benchmark’s credit risk data, but a host of other financial services too.”

Chinese assets warm, not hot for Western investors

(GNN) - A flurry of initiatives by China to open up its currency, stock and bond markets inside and outside the country has failed so far to allay international investor concerns about performance, accessibility and liquidity.
China has been working increasingly rapidly to liberalize its capital markets, with the eventual aim of making its currency fully convertible, giving it a larger role in the global economy.

As its markets open up, they can offer a similar appeal to investors to those enjoyed by many frontier markets - an appreciating currency over the longer term and potentially high returns for those willing to take an early punt.

Launched just four years ago, the overseas yuan bond market - or dim sum market - has already reached $120 billion, for example.

But the market has centered heavily around Hong Kong, even though countries such as Britain have made a concerted push to grab a share of this potentially lucrative market.

"The development of a significant secondary market for renminbi (RMB) bonds has yet to happen," a recent survey commissioned by the City of London said.

"There have been major issuances in London ... but the secondary market, after a flurry of activity in 2011 and 2012, has practically ceased," the report added, recommending more discussion between Britain and China on how to boost the market.

Recent developments include the appointment of China Construction Bank (601939.SS) as a yuan clearing bank in London, designed to aid liquidity in this market, the introduction of yuan/sterling trading and plans for yuan/won trade in Asia.

China has also expanded its quota system to enable international investors to buy China's onshore yuan, stock and bond markets. Outstanding quotas approached $100 billion last month.

And a Hong Kong-Shanghai stock investment program, due to be introduced later this year, will allow stock trading between the two cities, opening up access to China for international investors with a Hong Kong presence.

YIELD HUNGER

China should be able to make the most of the worldwide hunt for yield, and its dim sum bond market has had a bumper first half.

Total new issuance - mainly but not exclusively from Chinese borrowers - of 358.6 billion yuan ($57.7 billion) this year is already close to the 2013 full-year total, according to Thomson Reuters data.

International investors don't need a quota to invest in this market, unlike the onshore market.

"It's a good easy first step for foreign investors," said Gregory Suen, investment director with HSBC Asset Management in Hong Kong.

Research by David Spegel, head of emerging markets sovereign and credit strategy at BNP Paribas, showed dim sum made up the bulk of this year's international emerging market debt issuance denominated in local currency.

China's decision this year to widen its yuan trading band, so adding more two-way trade into the market, has also indicated greater commitment to market forces.

But it has unnerved investors seeking a carry trade play on yuan appreciation - the currency CNY=CFXS has only recently started to reverse this year's falling trend.

In addition, looser monetary policy has cut the appeal for some investors, with dim sum yields of 4.4 percent below the average for emerging market local currency debt CNHI=HSBC.

"Given financial repression in China, and low to negative real yields ... we do not have a positive view on Chinese bonds at the moment," said Bryan Carter, lead portfolio manager for emerging debt at Acadian Asset Management in New York.

EQUITY WOES

At a market capitalization of close to $4 trillion, the Chinese onshore A-share market is far larger than the H-share Hong Kong-listed market for Chinese shares, with a market cap of around $600 billion.

Emerging market fund Ashmore was the first asset management firm outside Hong Kong to gain a more flexible Renminbi Qualified Foreign Institutional Investor (RQFII) license to invest in mainland China.

"The local market is big, it's deep, it's broad, it's a much more diversified starting point than just the H-share market," said Julie Dickson, portfolio manager at Ashmore. "More and more investors are looking at it for the first time."

A-shares have slightly cheaper valuations than H-shares, investors say, and offer a much broader exposure - to smaller businesses, internet companies and others focused on China's consumption story.

But Chinese markets are also notorious for underperforming the economy's growth trajectory, which while slowing is still topping an annual 7 percent.

Chinese stocks have fallen again this year, depressed in part by the launch or expected launch of initial public offerings (IPOs), where most emerging stock markets have risen.

And in a sign that most investors are not yet ready for onshore Chinese markets, index compiler MSCI, with around $1.3 trillion benchmarked against its emerging markets index, last month suffered a setback in its plans to announce the inclusion of A-shares in the index.

Resistance from investors who did not have quotas to invest in this market mean the shares remain under review. [ID:nL2N0OR2HB]

Peter Elam Hakansson, chairman of East Capital which has an investment quota for Chinese markets, said the restrictions of the quota system meant most investors were not yet ready for benchmarking against an index containing A-shares.

"Maybe it was slightly too early," he said. (GNN) (Reuters) (AIP)

(Additional reporting by Michelle Chen in Hong Kong; Editing by Ruth Pitchford and Pravin Char)

Goldman to test appetite for new structured product

LONDON, June 23 (IFR) - Goldman Sachs will start marketing a new type of bond transaction this Wednesday that straddles asset categories and features an unusual triple-recourse structure, as it seeks to take advantage of investors' demand for Triple A rated assets.

The so-called Fixed Income Global Structure Collateral Obligation (FIGSCO) issuer is a joint venture between Goldman Sachs and Mitsui Sumitomo Insurance and will provide investors with a triple recourse if things turn sour.

Under the structure, investors will have recourse to the pool of assets backing the trade, as well as having an unsecured claim against Goldman Sachs and Mitsui.

This triple-recourse mechanism makes the transaction akin to a covered bond issue, where investors have a claim against the assets and the issuer and, indeed, covered bond investors will be among the targeted roadshow audience.

The transaction is expected to diversify Goldman's funding sources and the outright pricing level is expected to be competitive with senior funding.

The deal has been structured in response to a lack of supply of Triple A rated assets and net negative covered bond supply. The programme size being set up is 10bn.

Barclays, Credit Agricole-CIB, Natixis, Goldman Sachs and UBS will hold investor meetings running from Wednesday until July 1.

But while the transaction uses some covered bond technology, it does not have all the bells and whistles traditionally attached to the sector.

There is no legal framework; the assets would not be eligible for a cover pool as defined by European regulation; the bonds will unlikely be repo-eligible at the ECB; nor will they likely count for the Liquidity Coverage Ratio. They will probably have a 20% risk-weighting and be treated as Triple A corporate exposure under Solvency 2.

TRIPLE A WITH A SPREAD

The deal could offer buyers a much more attractive spread than a sovereign trade, while filling a supply gap in the covered bond primary market, according to a FIG syndicate banker.

"This is an interesting trade, especially if you look at what's going on in the world," he said. "This will offer value and we expect the big liquidity books to get on board." On the negative side, the deal may require more knowledge than a plain Triple A trade.

"We have been here before: Triple A with a spread," the banker said, "which is why the roadshow will be extremely important and investors will have to do their homework."

Another banker said the complex nature of the trade was a negative. "They clearly want to leverage the success of covered bonds, but the complexity alone is negative."

The S&P Triple A is achieved thanks to a total return swap provided on it by Goldman Sachs Mitsui Marine Derivative Products, or GS MMDP, a joint venture with strong credit ratings. For some, this has echoes of the much maligned CDO market.

Meanwhile, the deal's collateral cashflow is likely to come from a variety of securities from Goldman Sach's long-term funding operations.

There is no disclosure yet, but that could mean the collateral could include bonds, derivatives and loan assets, which sources away from the deal say resembles something between a structured covered bond and a CDO structure.

FIGSCO would be more dynamic than a typical covered bond pool, though, as assets would be marked to bid on a daily basis and topped up to keep overcollateralisation above 5%.

More collateral will be added to the pool if the existing securities decline in value. A reputable international asset monitor will be tasked with assessing the valuation of the pool on a monthly basis.

The items would not be disclosed line by line, but investors would be informed of the type of assets, the country of origin, the proportion of fixed and FRN assets and the level of concentration risk.

(Reporting By Helene Durand, Anna Brunetti, Editing by Philip Wright)

Govt, media, army must work together for country: Nawaz

http://www.gnnworld.tk/2014/05/gov-media-army-work-together-country-nawaz.html
By Murtaza Ali Shah May 02, 2014 thenews
LONDON: Prime Minister Nawaz Sharif has said that the government, media and army must work together for the country to take Pakistan out of the multifarious and serious crises facing the motherland. Answering a question from ‘GNN - NIN’ after addressing a conference of investors here, the premier said that all the institutions, including the media and security institutions, had a vital role to play.

“We all have to join hands to move forward. Be it the media or Pakistan’s armed forces, the government or the security institutions, we all will have to work together. Pakistan is surrounded by crises and we have tried to put it back on track since coming to power,” he said.

The prime minister was asked about the Jang and Geo appeal to him and the Chief Justice of Pakistan Justice Tassaduq Hussain Jillani. It was feared that justice, fairplay and impartiality could not be expected from a dysfunctional and weak body like Pemra and that the allegations levelled by the Ministry of Defence were so defamatory, scandalous and serious that an independent Supreme Court Commission should be formed to inquire into these allegations.

The premier said that the Judicial Commission was set up by the Supreme Court of Pakistan on his request to look into various aspects of the attack on senior anchor Hamid Mir. “A commission comprising three judges has been formed; let the commission complete its work to find out the facts.”

Nawaz Sharif appealed to all sides to focus their efforts on Pakistan’s betterment. He said that Pakistan’s industry had halted but now it was running two to three shifts and production was increasing.

“I believe that we have to resolve these matters. We should make matters easy and resolve issues amicably. Pakistan is at such a stage where it faces many difficulties,” the premier said.

He said that it was due to his economic policies that Pakistan would get more than $30 billion of investment in the next a few years.

“This is unprecedented investment, mainly from Chinese and also Pakistani investors. This will boost Pakistan’s energy sector. Pakistan will become a corridor for investment and growth in the region.

We have to understand that almost 3 billion people live in this region. There is so much we can gain and our nation can benefit through our policies,” he said adding that the future of the world lay in this region.

He stressed: “We should not entangle ourselves in these issues. We shall not be distracted.

Video : Judicial Commission to probe Hamid Mir attack: PM