Saxo Bank releases 10 Outrageous Predictions for 2012

Fri, 16 Dec 2011 10:10:20 GMT

Saxo Bank has today released its annual Outrageous Predictions. Among the unlikely events predicted by the Bank are that Australia will go into recession, Basel III and regulation will force 50 bank nationalisations in Europe and Apple shares will plummet 50 percent from their 2011 high.

In its Outrageous Predictions, Saxo Bank focuses on events that are unlikely to happen, but at the same time are far more likely than the market appreciates. The predictions are not meant as forecasts, but it is important for investors to consider events with under-recognised probabilities. Should any of them come to pass, they would have a significant impact on the markets.

Saxo Bank's Outrageous Predictions for 2012:
1. The stock of Apple Inc plummets 50 per cent from 2011 high

Going into 2012 Apple will find itself faced with multiple competitors such as Google, Amazon, Microsoft/Nokia, and Samsung across its most innovative products, the iPhone and iPad. Apple will be unable to maintain its market share of 55 per cent (three times as much as Android) and 66 per cent on the iOS and iPad.

2. EU declares extended bank holiday during 2012

The December EU Treaty changes prove insufficient to solve EU funding needs, particularly those in Italy, and the EU debt crisis returns with a vengeance by mid-year. In response, the stock market finally caves in and drops 25 per cent in short order, prompting EU politicians to call an extended bank holiday, closing all European exchanges and banks for a week or more.

3. A yet unannounced candidate takes the White House

In 1992, Texas billionaire Ross Perot managed to take advantage of a recessionary economy and popular disgust with US politics and reap 18.9 per cent of the popular vote. Three years of Obama has brought too little change and only additional widespread disillusionment with the entire US political system, and conditions for a third party candidate have never been riper. Someone with a strong programme for real change throws his or her hat in the ring early in 2012 and snatches the presidency in November in one of the most pivotal elections in US history, taking 38 per cent of the popular vote.

4. Australia goes into recession

The effects of the slowing up-and-coming Asian giant ripple through Asia Pacific push other countries into recession. If there ever was a country dependent on the well-being of China it is Australia with its heavy dependence on mining and natural resources. And as China's demand for these goods weakens, Australia is pushed into a recession, which is then exacerbated as the housing sector finally experiences its long overdue crash – a half decade after the rest of the developed world.

5. Basel III and regulation force 50 bank nationalisations in Europe

As 2012 begins, pressure will mount on the European banking system as new capital requirements and regulatory pressure force banks to deleverage in a great hurry. This creates a fire sale on financial assets as there are few takers in the market. A total freeze of the European interbank market forces nervous savers to make bank-runs, as depositors distrust deposit guarantees from insolvent sovereigns. More than 50 banks end up on government balance sheets and several known commercial bank brands cease to exist.

6. Sweden and Norway replace Switzerland as safe havens

As we saw with Switzerland, becoming a safe haven in a world of devaluing central banks presents a number of risks to a country’s economy. The capital markets of both countries are far smaller than Switzerland, but the Swiss are aggressively devaluing their currency and money managers are looking for new safe havens for capital. Flows into the two countries' government bonds on safe haven appeal becomes popular enough to drive 10-year rates there to more than 100 basis points below the classic safe haven German Bunds.

7. Swiss National Bank wins and catapults EURCHF to 1.50

Switzerland's persistency in fighting the appreciation of its currency will continue to pay off in 2012. With Swiss fundamentals - particularly export related - continuing to suffer mightily in 2012 from past CHF strength, the SNB and government bear down further to prevent more collateral damage and introduce extensions to existing programmes and even negative interest rates to trigger sufficient capital flight from the traditional safe haven of Switzerland to engineer a move in EURCHF as high as 1.50 during the year.

8. USDCNY rises 10 per cent to 7.00

As marginal returns from building million-inhabitant ghost towns diminish and exporters struggle with razor-thin margins due to the advancing CNY China gets to the brink of a "recession", meaning 5-6 per cent GDP growth. Chinese policymakers come to the rescue of exporters by allowing the CNY to decline against a US Dollar - buoyed by its safe-haven status amid slowing global growth and an on-going Eurozone sovereign debt crisis - and send the pair up to 7.00 for a 10 per cent increase.

9. Baltic Dry Index rises 100 per cent

Lower oil prices in 2012 could lead to an increase in the Baltic Dry Index as operating expenses go down. Brazil and Australia are expected to expand iron ore supply, further leading to lower prices and therefore higher import demand from China to satisfy its insatiable industrial production. In combination with monetary easing this leads to a massive spike in iron ore demand.

10. Wheat prices to double in 2012

The price of CBOT wheat will double during 2012 after having been the worst performing crop in 2011. With 7 billion people on the earth and money printing machines at full throttle, bad weather across the world will unfortunately return and make it a tricky year for agricultural products. Wheat especially will rally strongly as speculative investors, who had built up one of the biggest short positions on record, will help drive the price back towards the record high last seen in 2008.

Steen Jakobsen, Chief Economist at Saxo Bank, commented: "Our Outrageous Predictions have been prepared in the spirit of encouraging investors to think outside the box and prepare for world-altering events. Thinking outside the box is rarely a comfortable exercise, but neither is dealing with an unpleasant surprise for which one has failed to prepare in any meaningful way.

"Should some of the predictions come to pass, it would make 2012 a year of tremendous change. We would like nothing more than to be proven wrong on negative views, but only if they are replaced with something better than the current central bank and government-manipulated paradigm."

To see more please visit the Outrageous Predictions page Saxo Bank's website.

About Saxo Bank
Saxo Bank is a leading online trading and investment specialist. A fully licensed and regulated European bank, Saxo Bank enables private investors and institutional clients to trade FX, CFD, ETFs, Stocks, Futures, Options and other derivatives via three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application available in over 20 languages. Saxo Bank also offers professional portfolio and fund management through Saxo Asset Management who accommodates high-net worth private clients and institutional investors and provides banking services and advice to retail clients through Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia.

Saxo Bank announces appointment of new board members following approval of TPG Capital

Wed, 14 Dec 2011 15:19:30 GMT

Saxo Bank, the online trading and investment specialist, is pleased to announce that TPG Capital, one of the world's leading investment firms, has acquired 30% of the total issued share capital of Saxo Bank A/S.

The Danish Financial Supervisory Authority, other international supervisory authorities and the EU Commission have all approved a TPG Capital affiliate as a new qualifying shareholder in Saxo Bank A/S. The transaction has consequently been closed today and the change of ownership has been completed.

TPG Capital has acquired the 30% stake in Saxo Bank from existing investors, including General Atlantic, a global growth investor, and Banco Espirito Santo, a leading Portuguese bank, amongst others. General Atlantic and Banco Espirito Santo invested in Saxo Bank in 2005 and 2008, respectively. Banco Espirito Santo will continue to build its commercial cooperation with Saxo Bank.

As previously announced, the founders of Saxo Bank, Kim Fournais and Lars Seier Christensen, will retain majority ownership and continue in their roles as CEOs. Fournais Holding A/S and Lars Seier Christensen Holding A/S own 29.95% of the Bank each.

Following the new shareholder structure, the Board of Saxo Bank now includes Chairman Kurt K. Larsen, Dennis Malamatinas, Professor Thomas Plenborg as well as new members of the Board, Asiff S. Hirji, Partner at TPG Capital, Karl I. Peterson, Partner at TPG Capital, and Jacob Polny (alternate), Vice President at TPG Capital.

About TPG Capital:
TPG Capital is the global buyout group of TPG, a leading private investment firm founded in 1992, with $48 billion of assets under management and offices in Beijing, Chongqing, Fort Worth, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, San Francisco, São Paulo, Shanghai, Singapore and Tokyo. TPG Capital has deep global financial services expertise with investments that have included Bank Thai, BTPN, Fidelity National Information Services, Korea First Bank, LPL Financial Services, Shenzhen Development Bank, Shriram City Union Finance and Taishin Holdings, among others. The Firm also has extensive technology experience with investments that have included Aptina, Hotwire, Intergraph, Lenovo, MEMC, Sabre Holdings, Seagate, SunGard, and Vertafore, among others. Please visit www.tpg.com for more information.

About Saxo Bank:
Saxo Bank is a leading online trading and investment specialist. A fully licensed and regulated European bank, Saxo Bank enables private investors and institutional clients to trade FX, CFDs, ETFs, Stocks, Futures, Options and other derivatives via three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application are available in over 20 languages. Saxo Bank also offers professional portfolio and fund management. Saxo Asset Management accommodates high-net worth private clients and institutional investors and Saxo Privatbank provides banking services and advice to retail clients. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia. For more information, please visit www.saxobank.com.

Saxo Bank and ICAP Shipping involved in world's first electronic container freight swap settled in USD

Fri, 09 Dec 2011 16:56:45 GMT

Saxo Bank, the trading and investment specialist, and ICAP Shipping, the shipping arm of ICAP plc, announced on Thursday that they were involved in the execution of the world's first electronic, voice-assisted trade of a container freight swap agreement settled in US dollars.

The counterparties to the trade were Saxo Bank in Denmark as the buyer and a Netherlands-based trading house as the seller. ICAP Shipping was the broker of the trade. The container freight swap agreement was executed on ICAP's Webtrader platform, with manual input from ICAP Shipping brokers and cleared by LCH.Clearnet.

The trade was executed by rugby star Lawrence Dallaglio during ICAP's 19th annual Charity Day. On ICAP Charity, all ICAP revenues are donated to a selection of 200 charities and celebrity patrons are invited to help close deals. Mr. Dallaglio attended ICAP Charity Day in support of Cancer Research and Great Ormond Street Hospital.

Container freight swap agreements lock in the freight exposure for standard containers transported from Asia to Europe, Mediterranean countries and the United States. Cash flow for this sort of freight exposure has been unpredictable for retailers, importers and logistic companies in the past and the concept of pricing container freight against indices and using swap agreements to manage the risk has attracted many industry participants over the last year. Screen execution with the added surety of voice broker assistance was a key requirement of customers.

Henry Liddell, CEO ICAP Shipping said: "The execution of the world's first electronic container freight swap agreement is an important milestone in the on-going development of the container swaps market. This youngest segment in the shipping industry has seen a rapid growth over the last decade and will become an even more important risk management tool in the current economic environment. Container swaps are a hedging tool for the container industry to manage the price volatility of the physical market."

Johan Gade, Freight & OTC Derivatives, Saxo Bank said: "We fully support electronic freight derivatives trading and believe that going forward container swaps will be a valuable addition to the electronic dry bulk and tanker freight derivatives offering we are about to launch."

Saxo Bank also offers professional portfolio and fund management. Saxo Asset Management accommodates high-net worth private clients and institutional investors and Saxo Privatbank provides banking services and advice to retail clients. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia. For more information, please visit www.saxobank.com

About ICAP
ICAP is the world's leading interdealer broker and provider of post trade risk and information services. The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios. For more information go to www.icap.com.

Saxo Bank comments on Eurozone sitation ahead of EU leaders summit

Fri, 02 Dec 2011 16:15:07 GMT

Saxo Bank has released a new macro view video with Steen Jakobsen, Chief Economist, commenting on the situation for the Eurozone ahead of the EU leaders' summit and in light of the major global central banks' intervention to boost liquidity. The concerted central bank action has effectively resulted in the US printing money for Europe seeing as the European Central Bank will not, says Steen, adding that it’s like flying in a jet with one engine only - hardly a safe scenario.

The surprising joint intervention by the world's largest central banks to make it cheaper for financial institutions outside America to borrow dollars has had a positive effect on risk sentiment, but is not expected to last long. For an extended rally or to just sustain gains something more needs to be put on the table, like better fundamentals, plus structural changes and real commitments to toing the line in Eurozone nations, says Steen. The reason being that the severe solvency issues in Europe and deep rooted growth problems are still very much plaguing outlooks.

One could argue that with the central banks having joined forces the pressure is now more so on European politicians to implement lasting austerity and commit to cleaning up their backyards and follow standard rules. The question is whether EU leaders will be able to set things straight once and for all when they meet for the seventeenth time to solve the issues. Steen remains doubtful.

In the meantime, the central bank action has resulted in the cost of emergency dollar funding being cheaper for European banks than US banks. Therefore there is increased expectation now that the Federal Reserve will lower its discount rate by at least 25 basis points before the new dollar swap rate kicks in on December 5. A deeper cut is also possible, he says but that would mean the Federal Reserve is virtually letting go and committing to printing money forever.

Steen also commented on the global macro situation, in particular China, following the Reserve Requirement Ratio cut amid a slowing growth scenario and in terms of timing in a global context. Meanwhile US data continues to please for now at least but he warns that the better numbers may be petering out.

The full video can be viewed at http://www.tradingfloor.com/blogs/macro-ad-hoc/global-central-bank-action-puts-heat-on-eu-summit-to-deliver-886705704.

About Saxo Bank
Saxo Bank is a leading online trading and investment specialist, assisting clients in forex trading, CFDs, Stocks, Futures, Options and other derivatives The three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application are available in over 20 languages. Saxo Asset Management accommodates high-net worth private clients and institutional investors. In 2011 Saxo Bank continued the diversification of its business and launched Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia.

Saxo Bank releases new Asia Focus Video

Fri, 02 Dec 2011 15:35:11 GMT

Saxo Bank, the online trading specialist, has released a new Asia Focus Video which features Andrew Robinson, Forex Analyst for Saxo Capital Markets in Singapore, analysing the People's Bank of China's decision to lower its reserve requirement ratio, whether it's a taste of more cuts to come and how much it is a clear signal that the world's second-largest economy is really slowing after all.

The unexpected People's Bank of China's announcement that it will lower its reserve requirement ratio on December 5, representing the first cut in three years, initially surprised markets and started a risk-on sentiment, particularly in equities and incited market hunger for more monetary easing.

As such, reserve requirement ratio cuts rarely come in isolation and more are likely soon, probably as early as next month, confirmed Andrew Robinson, FX Analyst, Saxo Capital Markets. He said the timing of this easing has to do with the flow of data of late which has pointed to a slowing in the economy and that it was acknowledgement of this situation. Furthermore it pre-empted the latest purchasing manager index data which confirmed a contraction scenario for the economy.

Commenting on the recent data from China, Andrew said: "Last month's data was looking particularly soft and the expectations for this month are not particularly encouraging. If we look at the data that's been coming out recently, it's certainly suggesting that the market is slowing down.

"I think this is a pre-emptive move by the PBOC and they're looking to continue it and build the economy."

The focus in the coming days will now shift to inflation data with more declines in the consumer price index and an even greater drop in the purchasing prices index seen. Combined, this confirmation of a softening in price pressure effectively removes a hurdle the People's Bank of China was facing in terms of the freedom to continue to ease monetary policy.

The video can be viewed at http://www.tradingfloor.com/blogs/macro-ad-hoc/more-chinese-easing-as-price-pressure-abates-removing-pboc-hurdle-1126984016, with many other forex videos available on the Saxo Bank site.

Saxo Bank enables online Islamic trading

Mon, 21 Nov 2011 09:57:43 GMT

Saxo Bank A/S, the online trading and investment specialist, has enabled its clients to identify and trade Islamic compliant stocks and ETFs on more than 25 exchanges worldwide. The Bank selected IdealRatings Inc., a leading global Islamic compliant fund management service provider, as the most reliable source for identifying Islamic compliant instruments globally.

The compliance reasoning is based on commonly accepted and transparent Islamic guidelines defined by IdealRatings and Shariah Review Bureau with operations in Jeddah, Bahrain and Saudi Arabia and Manama. More than 12,000 stocks and Exchange Traded Funds (ETFs) are screened and researched on a monthly basis by IdealRatings.

Jakob Beck Thomsen, Regional head of Middle East and CEO Saxo Bank (Dubai) Ltd., said: "Islamic finance is one of the fastest growing sectors in the world today and we are excited to enable our clients to identify and trade Islamic compliant stocks online. IdealRatings is the industry's most trusted brand for identifying and researching Islamic compliant stocks and we are confident in offering their data to our clients."

Mohamed Donia, CEO of IdealRatings, added: "Saxo Bank A/S has always been an innovator and market leader in providing its clients with quality financial services and we are delighted to partner with them to provide this reliable information for their discerning investors."

Saxo Bank to take over full title sponsorship of Riis Cycling

Wed, 16 Nov 2011 12:04:07 GMT

Saxo Bank, the trading and investment specialist, will take over the full title sponsorship of Riis Cycling in 2012. In 2011 the sponsorship was held jointly with SunGard, one of the world's leading software and technology services companies, but Saxo Bank has now decided to exercise an option to step up and become the sole title sponsor. All three parties have agreed that the timing is now right for a smooth transition, where SunGard will discontinue its sponsorship.

Saxo Bank has sponsored Riis Cycling since 2008, and Saxo Bank's decision to once again become sole title sponsor of the team is based on a genuine wish to support the team and a commercial decision to further build on the advantages that Saxo Bank believes are extended through this additional commitment to Riis Cycling.

Team owner Bjarne Riis said: "Since 2008 Saxo Bank and Riis Cycling have proven to be a great match. I am proud that a truly professional company such as Saxo Bank not only continues to see the commercial benefits in sponsoring our teams, but also shows its commitment and faith in our work by stepping up to become the sole title sponsor. This is evidence of a great partnership, and I'm convinced there are many more gains to be realized from this relationship in the future."

In a joint statement, Kim Fournais and Lars Seier Christensen, co-CEOs and co-founders of Saxo Bank, said: "Saxo Bank was offered an option to become the sole title sponsor of Riis Cycling, which was an offer we could not turn down. From the outset, we have sincerely wanted to support Bjarne Riis and his team and with our continued geographical expansion, the sponsorship also makes good sense commercially. While the decision to continue as full title sponsor is a strategic one, our past collaboration with the team has been fantastic, and we are looking forward to watching Team Saxo Bank race across the streets of the world in 2012."

SunGard became a sponsor of Riis Cycling below title level in 2010. This paved the way for SunGard to announce the co-title sponsorship deal for 2011 and 2012 during the 2010 Tour de France.

Bjarne Riis says: "We have had a great partnership with SunGard, and I'm forever grateful for SunGard believing in us and stepping up to sponsoring the team at title level at what was a very difficult moment for the team, but SunGard did never hide that this wasn't part of their long-term strategy."

With Saxo Bank ready to take over the full title sponsorship again, the parties have agreed for SunGard to step down and terminate SunGard's deal for next year. The agreement has no influence on the 2012 team budget.

George Thomas, SunGard's vice president of communications said: "We have had a successful partnership with Riis Cycling over the past two years and we are pleased that we were part of the team’s success. The decision to end our sponsorship was a business decision and not related to the team. We know we are leaving them with a great sponsor in Saxo Bank and we wish them much continued success."

In 2012 the name of the professional cycling team will be "Team Saxo Bank Professional Cycling Team."

About Saxo Bank:
Saxo Bank is a leading online trading and investment specialist, assisting clients in forex trading, CFDs, Stocks, Futures, Options and other derivatives. The three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application are available in over 20 languages. Saxo Asset Management accommodates high-net worth private clients and institutional investors. In 2011 Saxo Bank continued the diversification of its business and launched Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East and Australia.

About SunGard
SunGard is one of the world’s leading software and technology services companies. SunGard has more than 20,000 employees and serves over 25,000 customers in more than 70 countries. SunGard provides software and processing solutions for financial services, education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue of about $5 billion, SunGard is ranked 434 on the Fortune 500 and is the largest privately held business software and IT services company. Look for us wherever the mission is critical. For more information, visit www.sungard.com.

Trademark Information: SunGard and the SunGard logo are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

Saxo Bank receives Best Active Trading Tools award at Shares awards

Mon, 14 Nov 2011 11:50:40 GMT

Saxo Bank, online trading and investment specialist, has won the award for 'Best Active Trading Tools' at the annual Shares awards in London.

The Shares awards aim to recognise those organizations providing both innovative and high quality of service to the world of retail investment. The awards provide a platform for traders and investors to voice who are the best in the business.

Henrik Dyrholm Holst, Head of Platform Management at Saxo Bank, commented on the win: "Saxo Bank is proud to have been awarded for providing the industry’s leading trading tools. Saxo Bank is renowned for our online forex trading but SaxoTrader is a multi-product trading platform offering clients a wide range of opportunities to trade the world's capital markets, from FX Options and Futures to CFDs on stocks, indices and commodities as well as popular investment products such as Stocks, Bonds and ETFs. We have continuously focus on making the trading experience for all types of traders as positive and intuitive as possible, and clearly guide users through the broad range of features on the platform. In 2011 we have also upgraded the platform with winners/losers stock in intraday real-time across all 23 stock exchanges covered by Saxo Bank. In addition, we continue our investment in optimizing and adding new trading tools and are happy to announce the imminent launch of our cutting edge trading apps for both Android and iPhone."

Saxo Bank's trading platforms have defined the company's success in the online trading space for over a decade. Since introducing the SaxoTrader in 1998, Saxo Bank has enhanced and improved its platforms to meet the evolving needs of forex traders and investors in a continuously changing industry.

Shares is the leading weekly publication for stock market professionals and private investors and as such is read weekly by thousands of analysts, fund managers, stockbrokers, company directors and private investors. The Shares' team of expert writers is highly regarded in the City and their comment frequently influences the market's view of individual companies and their underlying share price. The magazine's easy-to-read style and depth of analysis has made it the indispensable weekly read for those actively investing in the UK stock market today.

A full list of awards can be found at http://www.sharesawards.co.uk/awards/.

About Saxo Bank
Saxo Bank is a leading online trading and investment specialist. The three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application are available in over 20 languages. Saxo Asset Management accommodates high-net worth private clients and institutional investors. In 2011 Saxo Bank continued the diversification of its business and launched Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia.

Saxo Bank releases new Asian Focus video

Thu, 03 Nov 2011 14:43:23 GMT

Saxo Bank has released new Asian Focus video featuring Andrew Robinson, correspondent for Saxo Capital Markets, analysing the effect of the Bank of Japan's latest yen intervention and the sustainability of further actions before year end. He also commented on the Reserve Bank of Australia's decision to cut rates, the first flow of PMI data in Asia and the noise surrounding the Chinese leader's visit to Europe this week.

Japan's Finance Minister Jun Azumi put his money where his mouth was with unilateral intervention to weaken the yen. This is the third intervention this year with estimates suggesting it is the largest one of the three. So far it has had the intended effect with the USDJPY holding at around the 78.0 level. History however shows that it could be a longer term struggle to keep it there as after the previous two interventions this year it took only about five days for the rate to drop back to pre-intervention levels. Concerning other action it is unlikely the Bank of Japan will instigate other measures like a trading floor for the pair, similar to the Swiss National Bank’s action, Andrew said.

The timing of the intervention ahead of the Group of 20 leaders initially took the market by surprise but in hindsight as Finance Minister Azumi had in recent weeks spoken almost daily about the problem of the strong yen it was ultimately only a matter of time before the Bank of Japan took action.

Meanwhile the Reserve Bank of Australia cut the official interest rate by 25 basis points for the first time since April 2009. Whether this is the beginning of a whole series of cuts or just a one-of is another story though and will depend largely on the development of the local economy and the degree of uncertainty globally. How effective the passing on of the cut by commercial banks to consumers will be on their spending behaviour will also remain to be seen.

Monthly Purchasing Managers Index data in the Asian region paints a mixed picture about the health of the manufacturing sectors with most attention on China and somewhat different stories being told by the official Chinese data and private sector equivalent report.

China is also drawing attention from its leader Hu Jintao's visit to Europe during the lead up to the G-20 summit. Expectations are increasing that China will commit to supporting the European Financial Stability Facility but any announcement is hardly likely to occur before the G-20 meeting.

Further information and additional forex videos can be found at videos.saxobank.com.

About Saxo Bank:
Saxo Bank is a leading online trading and investment specialist, enabling clients to trade forex, CFDs, Stocks, Futures, Options and other derivatives. The three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application are available in over 20 languages. Saxo Asset Management accommodates high-net worth private clients and institutional investors. In 2011 Saxo Bank continued the diversification of its business and launched Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia.

Saxo Bank releases new video commenting on Eurozone meetings and Greek referendum

Thu, 03 Nov 2011 11:06:36 GMT

Saxo Bank has released a new macro view video featuring Steen Jakobsen, Chief Economist, Saxo Bank, taking a look at the expectations for three key meetings this week: the Federal Open Market Committee, the European Central Bank and the Group of 20 leaders. He also addresses the implications of Greece's surprise referendum on its aid package and austerity programme.

Jakobsen commented that the G-20 meeting (November 3-4) needs to deliver actions rather than more supportive talk for the troubled Eurozone. Focus will be on the announcement of concrete financial measures of commitment via the International Monetary Fund in order to appease the prevailing uncertainty.

This uncertainty was exacerbated by Greece's call for a referendum on its new aid package and austerity measures, thereby possibly threatening European leaders' attempts last week to secure the Eurozone's future.

Prior to G-20 the Federal Open Market Committee meets. Despite a spate of moderately encouraging US data of late the committee is expected to merely confirm a supportive wait and see approach and possibly only allude to a third round of Quantitative Easing.

The European Central Bank meeting, also this week, which is the first to be chaired by the new President Mario Draghi will be interesting to watch to see if he already now cuts rates and thereby reverses the apparent error of his predecessor.

Jakobsen commented that being Italian and with much focus on his troubled homeland, there is an expectation that Draghi will be even tougher on ensuring that Italy shapes up, particularly considering a disappointing bond auction last week which indicates the increasing problem Italy has in financing its debt.

The full video, as well as other forex videos, can be found at video.saxobank.com.

Saxo Bank FX open positions module on TradingFloor.com

Tue, 01 Nov 2011 09:32:46 GMT

Saxo Bank, the online trading and investment specialist, has announced the launch of its FX Open Positions module on TradingFloor.com, its trading commentary, news and analysis website.

The Forex Open Positions module provides a snapshot of Saxo Bank clients' aggregated FX open positions on 10 major currency pairs, allowing users access to historical positioning across and within currency pairs. The module makes it possible to search for extreme positioning in particular currency pairs or for concentrations of positions that might result in support or resistance.

Claus Nielsen, Head of Markets at Saxo Bank, said: "We are pleased to be offering our FX Open Positions module to a wide audience via TradingFloor.com. The data available provides greater transparency to the forex market, a core ambition of Saxo Bank since we began publishing OTC options data in May 2011. We aim to ensure clients, visitors to TradingFloor.com and other potential users of the module have as much information as possible at their disposal to make informed trading decisions."

Module features include:
- Aggregate Position Ratios which show the relative size of position by USD value held by clients in a selection of currency pairs, and the relative proportion of longs versus shorts by currency pair.
- Instrument Open Positions which show clients' long and short positions at any instance in time in a single currency pair, selected from the Aggregated Position Ratio chart.
- Normalised Net Positioning for a single currency pair, which shows the relative positioning of clients within a certain time horizon.

The module is also interactive and users can set the start and end date to the time range they are interested in seeing data for, and drag a vertical bar to see how the open positions have changed over time. The chart data is updated hourly by default.

Read more about the module here: http://www.tradingfloor.com/tools/fx-open-positions.

About TradingFloor.com
TradingFloor.com is hosted, owned and managed by Saxo Bank A/S. The site provides commentary and analysis on trading in the financial markets. Content is delivered in text and video format. The site's contributors and bloggers include economists, equity analysts, trading advisors and journalists employed by Saxo Bank. The site also hosts content from other individuals and organisations. The website is embedded in all of Saxo Bank's trading platforms.

Saxo Bank has announced its expansion into Belgium

Mon, 31 Oct 2011 09:44:14 GMT

Saxo Bank, the specialist in online trading and investing, has announced the opening of its branch in Brussels in order to provide Belgian investors with access to international financial markets. Géraud Missonnier has been appointed Director of Saxo Bank Belgium.

The opening of the new office in Brussels is a strategic move by Saxo Bank in order to meet the growing demands of Belgian investors and strengthen its position as a major player in online brokerage, both in Europe and internationally. The Belgian branch will provide investors with the opportunity to participate in more than 25 stock markets and a wide range of financial instruments available through Saxo Bank's award-winning trading platforms.

Appointed Director of Saxo Bank Belgium, Géraud Missonnier will take over the operational implementation in Belgium and the organisations development in the Belgian market.

In addition to its offer to individual investors, Saxo Bank also offers a White Label solution (WLC - White Label Clients) for financial institutions allowed to hold their clients' funds. Saxo Bank's technology offers White Label Clients the ability to provide their clients with a unique trading offering whilst maintaining the characteristics of their brand, their visual identity, and their logo. This new expansion will allow Saxo Bank Belgium to reinforce existing partnerships and focus on developing new opportunities.

Géraud Missonnier, Saxo Bank Belgium Director declared: "By expanding into Belgium, Saxo Bank clearly intends to win over a market made up of high-potential investors. Indeed, a recent survey by NYSE Euronext conducted among active European investors revealed that 91% of the surveyed Belgian investors already use the Internet to buy and sell financial products. Our multi-product online platform combined with competitive rates corresponds perfectly to the expectations of those Belgian investors. Our aim? To become a major player in online brokerage in Belgium."

Founded in 1992, Saxo Bank is the second largest bank in Denmark by market capitalization. World leader in forex and CFDs, as well as known and renowned for its online trading solution, Saxo Bank also benefits from its sponsorship of the "Team Saxo Bank - Sungard" cycling team represented in Belgium by Nick Nuyens who made his team proud by winning the Tour of Flanders in April, 2011.

Nick Nuyens was present at the grand opening of the new office in Brussels, along with Belgium’s Deputy Prime Minister and Minister of Finance and Institutional Reform, Didier Reynders, and Lars Seier Christensen, co-founder and co-CEO of Saxo Bank.

Saxo Bank Belgium's Offering in Brief:
- Multi-product trading platform providing clients with direct access to 25 stock markets and more than 20,000 financial instruments via a single account
- Very competitive rates on Forex, CFDs, Stocks, ETFs, and Bonds
- Support and help for clients: an appointed adviser to answer client requests and the possibility of a meeting in the Saxo Bank offices
- Trading platform available three different ways: software downloaded to a PC, a platform available on the Internet, or from a smartphone (or PC tablet) connected to the Internet.
- Free online training
- Daily economic newsletter and stock exchange advice.

About Saxo Bank:
Saxo Bank is a leading online trading and investment specialist. The three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application are available in over 20 languages. Saxo Asset Management accommodates high-net worth private clients and institutional investors. In 2011 Saxo Bank continued the diversification of its business and launched Saxo Privatbank. In 2010, the Saxo Bank Group had a net banking income of 443 M€ (87 M€ net result). The Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia.

About Saxo Bank Belgium:
Launched in October 2011, Saxo Bank is registered with the National Bank of Belgium (Boulevard de Berlaimont 14, 1000 Brussels, www.nbb.be) on the list of credit institutions governed by the law of another Member State of the European Economic Area with a registered branch in Belgium. Saxo Bank Belgium enables private individuals, banks, and brokers to trade forex, CFDs, stocks, futures, options, and other derivatives via its online trading platforms. Saxo Bank Belgium is wholly owned by a Danish bank, Saxo Bank, founded in 1992 by Kim Fournais and Lars Seier Christensen. The Saxo Bank Group, headquartered in Copenhagen, currently employs more than 1,000 people from 62 different countries and is particularly present in the United Kingdom, France, Switzerland, Singapore, Spain, Australia, Japan, China, Italy, Dubai, Prague, the Netherlands, Russia, and now in Belgium.

About Géraud Missonnier, Saxo Bank Belgium Director:
Gerald Missonnier, who has a Master's Degree in Finance and a Specialized Master's Degree in Management Stratégique International from the Université de Paris 1 Panthéon-Sorbonne, as well as a second Specialized Master's Degree in Finanzas Internacionales from the Universidad Politecnica de Valencia (Spain), began his career at Lonlay & Associés as a Junior Consultant in wealth management and tax-exempt products. At the same time, he founded a forex investment club with seven investors. With a degree in Finance and a strong interest in the stock market, he joined Saxo Banque France in January 2009 as a Sales Trader. In that capacity, he developed and managed clientèle and also became a privileged contact person for French media (BFM Radio and Business, Reuters, Les Echos, Le Figaro, La Tribune, etc.) by providing analyses of financial markets (CAC40 and EUR / USD). He provided training in trading and gave lectures in Paris at significant conferences dedicated to investors active in the stock market. In October 2011, Géraud Missonnier was appointed Director of Saxo Bank Belgium; his goal is to develop Saxo Bank Belgium and manage the client portfolios.

Saxo Bank reveals leaders and laggards of the Q3 earnings season

Thu, 27 Oct 2011 09:50:54 GMT

Saxo Bank has released a new video examining the leaders and laggards of the Q3 earnings season.

With more than 20 percent of the benchmark S&P 500 companies having reported their results, the new video with Peter Garnry, Equity Strategist at Saxo Bank, not only looks at the leaders and laggards of the season but also what common threads, if any, there are across sectors.

The new equity video particularly focuses on the far reaching consequences of the Eurozone crisis on banking and financial entities plus the apparent invincibility (at least for now) of companies in the energy and technology sectors to the slowing economic growth of several key economies around the globe.

Peter Garny said: "We have said several times that we're in favour of technology and energy stocks and this earnings season so far has proven that those two sectors are the fastest growing in terms of sales and profits.

"Going forward, we're still positive on energy and technology stocks and relying on those two sectors due to their flexibility in terms of their operating model; they generate a lot of free cash flow and they have a very flexible balance sheet because they have a very low debt-to-equity ratio and the prices are very favourable."

In the video he also looks at the biggest earnings surprise so far from Caterpillar, which is benefitting largely from a mining boom driven primarily by China's demand for industrial metals and other mined materials used in manufacturing.

Peter likens the overall lack of expression and visibility concerning 2012 earnings outlooks as akin to radio silence with very few companies daring to speak up, and some actually even avoiding guidance on the fourth quarter despite relatively reliable revenues.

"Most of the companies are unable to give investors any guidance on where they see even the fourth quarter going. A lot of the companies are reporting very close to zero visibility on how their sales are coming in and we saw that Pepsi Co. couldn't even say anything about 2012; they deferred and said they would give guidance on 2012 in mid-December. That's a consumer stable company - they have pretty stable sales so that says a lot about the environment we live in now."

Peter concluded by saying the industrial sector will be one to watch over the next quarter, as well as re-affirming the strength of the energy and technology sectors.

About Saxo Bank:
Saxo Bank is a leading online trading and investment specialist, enabling clients to trade forex, CFDs, Stocks, Futures, Options and other derivatives. The three specialised and fully integrated trading platforms for forex trading; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application are available in over 20 languages. Saxo Asset Management accommodates high-net worth private clients and institutional investors. In 2011 Saxo Bank continued the diversification of its business and launched Saxo Privatbank.

The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East and Australia.

Saxo Bank Q4 Outlook 2011: Fasten your seatbelts, we're heading to Crisis 2.0

Mon, 10 Oct 2011 09:22:16 GMT

The next few months will see desperate moves by policymakers to save the financial system, according to Saxo Bank. In their Q4 financial outlook, the online trading and investment specialist says that this eventually will lead to Crisis 2.0.

In the past few months, the global economy has moved from bad to worse. Growth prospects have soured and governments and central banks are pulling out the stops to save the system once again. In Europe, renewed efforts to save the European Union from its debt crisis are foundering as EU governments have reached an all-time low in solidarity and an all-time high in playing to more domestic national agendas. However, for the first time in months, Saxo Bank is optimistic and says that Crisis 2.0 could result in a real confrontation between the Western world’s debt demons and bad practices and lead to unfettered markets and allocation of capital based on gaining the highest marginal return.

Commenting on the outlook, Steen Jakobsen, Saxo Bank's Chief Economist said:

"Policymakers' efforts in the developed world to salvage the economy with bailouts, stimulus and money printing have failed to build a sustainable recovery since the financial crisis in 2008. It seems policymakers and central banks have hardly learnt anything from their past mistakes. In fact, it appears they are ready to double down on their previous efforts, a state of affairs we call ‘Maximum Intervention’, which we believe will lead us towards Crisis 2.0.

"On a positive note, we believe Crisis 2.0 could result in a real confrontation with our debt demons and bad practices, eventually replacing the extend and pretend routine we’ve seen since the global financial crisis got under way. Now, more than ever, would be the time in which we ponder the true meaning of the word crisis: a turning point, not an extended period of doom and gloom. However, for now investors should fasten their seatbelts because we are in for a rough ride – one that will very hopefully see us in a better place when we finally land."

The Quarterly Outlook Q4 2011 focuses on the following areas:

Macro Outlook
Though the world economy will see robust growth of 3.8 percent this year this figure papers over a chasm between developed and emerging countries. While the developed economies led by the heavyweights (U.S. and Eurozone) are struggling to cope with the drag from deleveraging, emerging markets have hiked rates as inflationary pressures have mounted due to strong domestic demand. Domestic demand in emerging countries remains strong and should offset weakening foreign demand from developed economies.

Monetary policy
Saxo Bank expects the Fed’s “Operation Twist” to be the next step towards “QE Infinite”, with the next instalment being QE3, probably in Q1 2012. The Bank also expects that before year-end the ECB will reintroduce the provision of unlimited, fixed rate, long-term liquidity to banks, flushing the system with liquidity and forcing actual market rates lower than the current refinance rate at 1.5 percent – which may further go down. The analysts maintain their call for unchanged Japanese rates throughout 2011 and 2012, and feel further quantitative easing is very likely. Similarly, the Bank feels that QE2 in the UK is likely before Christmas and rates are not going to rise before 2013.

FX Outlook
Saxo Bank suspects a further tightening in yield spreads between the USD and other currencies will continue to unwind the carry advantage built up against the USD last year and at the beginning of 2011. The Euro could see a short-term relief rally if the EU manages to muddle through with the solidarity enforced by the market’s discipline. NOK appears to be the safer harbour than SEK, but it is unlikely to replicate the CHF’s previous performance. Also, the Aussie’s and Kiwi’s remain to appear extremely overvalued, and trading is expected to become more sidewise.

FX Options
Despite current high levels of volatility, Saxo Bank is cautious towards any short EUR downside option positions, and would rather lean towards a long option position aimed at benefitting from a lower EURUSD spot. If selling downside options, the Bank would much rather enter a conservative strategy such as selling EURCHF put spreads, rather than selling plain vanilla options. This would allow the investor to control the potential risk through 1.20.

Asia
The report suggests that China is facing an erosion of its global competitiveness with wage pressures linked to high-flying inflation being the dominant factors. The Chinese currency, and its gradual revaluation, is also playing its part and China’s loss of competitiveness may be seen as a helpful factor in the global rebalancing process. But Chinese authorities do not see any need to panic. If they can succeed in pulling off the latest Five-Year-Plan then this development, and its impact on the trade balance, will not be a major issue.

Equity Outlook
The Bank’s analysts do not recommend investors go all-in on equities despite compelling underlying fundamentals. It is more meaningful to keep some powder dry if stocks continue lower due to unpredictable events, and to increase exposure there if stocks tumble. This sounds nerve-racking for most investors but it is the most profitable strategy to keep increasing exposure in risky assets. If there are surprises in economic data going forward the biggest winners will be stocks in the financial, materials and industrial sectors. Investors that are willing to take on risk should consider those sectors as that is where the largest potential risk-reward ratio exists.

Commodity Outlook
Commodity markets will continue to be driven by worries about the potential impact of a slowing global economy. Cyclical commodities like energy and base metals have suffered as a consequence while safe haven flows and adverse weather have been the main reasons for gains across precious metals and agricultural commodities. Saxo Bank believes that renewed dollar strength during September will continue into the last quarter and this could potentially have a dampening effect on the performance of commodities, ensuring a relative flat 2011 performance of the major commodity indices.

Saxo Bank continues international expansion with new office in Moscow

Wed, 05 Oct 2011 09:41:48 GMT

Saxo Bank, the online trading and investment specialist today announced the opening of a new representative office in Moscow in order to respond to growing demand by Russia's sophisticated investor base.

The opening of the Moscow office is a strategic move by online trading specialist to strengthen and expand its position as a leading provider of online trading and investment solutions. The office will act as a broker boutique offering Russian investors a broad list of exchanges and instruments available through Saxo Bank's award winning trading platform.

There have been promising developments in Russia this year, with retail sales growth accelerating in August reaching 7.8% year on year (y/y). Unemployment declined whilst real wage growth picked up to 3.9% y/y which has filtered through to every segment from discount to luxury. Consumers' increasing maturity and sophistication has increased the HNW sector of the market and thus stimulated their risk appetite and desire for better returns, which fits Saxo Bank's investor profile.

The Moscow office will be headed by newly appointed COO Igor Dombrovan, who said: "Sustainable success is driven by customer focus, and the new representative office will enable us to have greater access to clients in Russia. The Russian retail market has demonstrated solid growth rates over the last several years, making the sector one of the most actively developing markets in the economy. This has been fuelled by growth in the overall economy, growing consumption and an increasingly organised marketplace. The new office will enable us to further support and educate this growing market with its highly sophisticated investor base."

Kim Fournais and Lars Seier Christensen, co-founders and CEOs of Saxo Bank, said in a joint statement: "While opening an office in Moscow is a strategic decision to support our European expansion and growth strategy, it has always been a priority for Saxo Bank. Russia has always been a good market for Saxo Bank because Russian clients are highly sophisticated investors. The new office will enable us to provide a more comprehensive on-the-ground service to clients and potential clients in the region."

About Saxo Bank:
Saxo Bank is a leading online trading and investment specialist, enabling clients to trade forex, CFD, Stocks, Futures, Options and other derivatives. The three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application are available in over 20 languages. Saxo Asset Management accommodates high-net worth private clients and institutional investors. In 2011 Saxo Bank continued the diversification of its business and launched Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East and Australia.

ForexTrading.net releases new videographic on the Forex Market

Mon, 03 Oct 2011 12:41:04 GMT

ForexTrading.net, a new online forex magazine is aiming to keep users updated with all the latest happenings in the world of forex trading, through a videographic that has been published on the site.

The new videographic will give users of the site an overview of the forex trading market, and can even be embedded into users' personal websites or blogs where it can be shared with other interested internet users.

Recent years have seen a number of changes in the forex trading market; not only has the number of people who trade in this manner shot up, but the way in which trading occurs is constantly evolving as well. For instance, in 2010 alone, cross-border trading transactions constituted 65% of trading activity. This implies the power of technology and its effects on the forex market.There has also been a rapidly growing disparity in algorithmic trading versus manual trading. In 2004, algorithmic trading only ranked at 2% of all trades, however in 2010 it comprised 45% of the trading share. Similarly the global foreign exchange market turnover was 20% higher in April 2010 than in 2007, with average daily turnover of 4 trillion USD compared to 3.3 trillion USD. As such, it's very important for forex traders and internet users who follow the market to keep updated, and ForexTrading.net videographics will allow users to learn about forex in a manner that's informative yet fun, and share their findings as well.

Nanna Arnadottir, editor at ForexTrading.net said: "The forex trading industry has some great news and commentary sites, but it can be a bit starved of interesting blogs with real quality content. That's what we're aiming for with ForexTrading.net, that and a bit of personality, which I think the videographic really provides.

It's a fun way to take in a lot of facts and you can share it or post it on your own blog, so everyone is a winner."

About ForexTrading.net:
ForexTrading.net is a blog about ForexTrading, owned and maintained by Saxo Bank, where you can regularly expect forex related articles, features, forex videos infographics, information about CFDs and how to guides. ForexTrading.net strives to deliver varied content related to the financial markets for beginners as well as the more experienced trader.

TradingFloor.com releases new video commenting on Eurozone crisis

Fri, 30 Sep 2011 09:38:12 GMT

TradingFloor.com has released a new video featuring Steen Jakobsen, chief economist at Saxo Bank, warning that solutions to the Eurozone debt problems need to be found before the Cannes G-20 Summit in November.

The new video highlights the sense of urgency for a solution to Eurozone problems, which has increased with market reaction clearly indicating intolerance with the current pace of progress, especially of late concerning the ratification of the 21 July changes to the European Financial Stability Facility and a solution for Greece.

Jakobsen mentions that there are some significant steps to take these days like key Eurozone member votes on EFSF ratification. Despite previously strong opposition to further rescue measures for troubled Eurozone members, anything but ratification is unlikely, says Steen. The Slovenian and German parliament has already given its thumbs up with Finland and Austria expected to follow suit by the end of the week. Though once approved by all member states this supposed knight in shining armour will not be able to ride easily to the rescue of failing nations. Unanimous (not majority) votes are required for decisions - like expansions of the facility - to be passed.

Meanwhile, talk about the concept of a European Investment Bank leveraging on the EFSF to ring-fence European banks from any fallout from the EU debt crisis, is hardly seen as a band aid but rather a ploy which will hardly solve anything, according to Steen.

Steen likens Greece's attempts at new austerity packages as an attempt to save the troubled nation at the goal line. With 99 per cent probability of default then talk of saving Greece is actually quite comical, he says. Meanwhile, austerity fatigue is apparent as evidenced by more strikes across Athens. Ultimately Greece needs debt forgiveness and a clean slate but a free-ticket to safety would hardly go down well with other troubled Eurozone nations. Nevertheless, Greece has become kind of a scapegoat due to increased talk of contagion (which is not an economic concept but rather a policymakers' excuse for not doing what needs to be done domestically). Contagion or not, it doesn't change the fact that there is no way out for Greece other than default, concluded Steen.

About TradingFloor.com:
TradingFloor.com is the web portal home of Saxo Bank's trading commentary, financial research and analysis.

TradingFloor.com's diverse contributors who range from macroeconomists to trading advisors, all strive to deliver insightful, enlightened commentary on trading in the financial markets - particularly on forex and forex trading, equities, stocks and commodities. Tradingfloor.com also publishes periodical model-based research and analysis to help longer-term traders allocate funds between and within asset classes.

TradingFloor.com's commentary and analysis is delivered in text and video via the website, where users can watch forex videos and receive information on products such as CFDs.

The website is also embedded in all Saxo Bank's trading platforms. Users can also subscribe to content from TradingFloor.com, or from their favorite contributor, via RSS feed or via Twitter.

TradingFloor.com releases video on the Federal Open Market Committee meeting

Wed, 21 Sep 2011 17:20:55 GMT

TradingFloor.com, the home of Saxo Bank's trading commentary, financial research and analysis, has released a video discussing the Federal Open Market Committee meeting (FOCM).

With the deterioration in the US economic outlook being further cemented by recent disappointing macro data, there is now mounting expectation that the Federal Reserve will once again come to the rescue and kick-start the world's largest economy. Therefore, all eyes are set to be on the latest Federal Open Market Committee meeting and what will or won't be decided in terms on new monetary stimulus.

The latest FOCM meeting has been extended to a two day meeting to allow for further discussions. The last meeting saw an extension of low rates until 2013, and Steen Jakobsen, chief economist at Saxo Bank, believes that the next step will be an Operation Twist Light.

Back in the 60s, The Operation Twist, meant that people sold short term bonds and bought long term bonds, which was seen as a twist, hence the name. This time this will not be possible, because the rates have already been lowered. This means only the long end part of the equation will be executed, with long term bonds being bought. However, Steen doesn't think this will be a lot for the market in the long term.

This alone is not going to be enough to turn it around. Steen believes that the market always likes to be promised something new, which means President Obama will need to balance the delivery of the Operation Twist Light and throw in something new as well.

Steen also comments that the situation in Europe will have an effect on the timing of any announcements from the US. While it is clear that the US realise the situation in Europe is not good for the US, Steen believes that the Federal Reserve will ultimately do what is the best for the US.

About TradingFloor.com:
TradingFloor.com is the web portal home of Saxo Bank's trading commentary, financial research and analysis.

TradingFloor.com's commentary and analysis is delivered in text and video via the website, where users can watch forex videos and receive information on products such as CFDs.

The website is also embedded in all Saxo Bank's trading platforms. Users can also subscribe to content from TradingFloor.com, or from their favorite contributor, via RSS feed or via Twitter.

Saxo Bank announces new offshore Renminbi CNH

Tue, 13 Sep 2011 10:14:38 GMT

Saxo Bank, the specialist in online trading and investment, today announced that the new USDCNH currency cross is now available on its trading platforms. Clients of Saxo Bank will now be able to trade the offshore Chinese renminbi against the US Dollar.

Streaming prices on ticket sizes up to USD 3 million will be available during regular FX trading hours from 8am Mondays Sydney time to 5pm Fridays New York time. Larger trade sizes will be available on a Request for Quote (RFQ) basis. The Margin Requirement for the USDCNH is 8% and the minimum trade size is USD 5,000 notional.

The USDCNH will be available to all Saxo Bank's clients, including those of white label clients, but will not be available to clients of Saxo Capital Markets HK.

Claus Nielsen, Head of Trading, Saxo Bank comments: "Over the past few years, the Chinese government has allowed the renminbi to appreciate against the US Dollar, and has gradually deregulated the currency's trading. CNH offers an important option to take and manage renminbi risk and exposure to real investments and positive yield. The development of the offshore renminbi CNH is integral to China's broader strategic plans to internationalise and turn the renminbi into a viable reserve currency.

"London, whose 37 per cent share of the global forex market is twice the one of its nearest rival New York, has just been officially approved by China as an offshore centre for trading renminbi. We expect USDCNH to become an interesting trading currency for our clients in the future."

About Saxo Bank:
Saxo Bank is a leading online trading and investment specialist. The three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application are available in over 20 languages. Saxo Asset Management accommodates high-net worth private clients and institutional investors. In 2011 Saxo Bank continued the diversification of its business and launched Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East and Australia.

Saxo Bank announces new shareholder

Fri, 26 Aug 2011 12:17:19 GMT

Saxo Bank is pleased to announce that TPG Capital, one of the world's leading investment firms, will become a major shareholder in Saxo Bank. Following the signing of a purchase agreement, a TPG Capital affiliate will acquire a 30% stake in the Company (along with an option to increase its stake to 40%) from existing investors, including General Atlantic, a global growth investor and Banco Espirito Santo, a leading Portuguese bank, amongst others. The founders, Kim Fournais and Lars Seier Christensen will retain majority ownership and continue in their roles as CEOs, also in the event that TPG Capital exercises its option to acquire 40%. TPG Capital's investment is subject to customary regulatory and competition authority approvals.

General Atlantic invested in Saxo Bank in 2005 and both Espirito Santo Financial Group and Banco Espirito Santo invested in Saxo Bank in 2008. Banco Espirito Santo will continue to build the commercial cooperation that the bank has had with Saxo Bank since 2008, namely through Banco BEST that is owned by both entities.

Kim Fournais and Lars Seier Christensen, founders, CEOs and majority shareholders in Saxo Bank said in a joint statement: "We are delighted to welcome one of the world's leading investment firms as a major shareholder and business partner. This new phase in Saxo Bank's growth stems from the strong foundation built with the support from our selling shareholders, who have shared in our success to date. We remain enthusiastic about Saxo Bank's future and look forward to working with TPG Capital to capitalise on the many opportunities ahead."

Asiff Hirji, Partner at TPG Capital said: "Saxo Bank has achieved impressive growth and we look forward to supporting the future diversification strategy. TPG Capital has a strong track record of investing in and growing financial services businesses, particularly those seeking further expansion in emerging markets, where we see tremendous opportunities for Saxo Bank. We look forward to working with its two founders and CEOs."

Bill Ford, CEO of General Atlantic and Ricardo Salgado, CEO of Banco Espirito said in a joint statement: "We have been pleased with our partnership with Saxo Bank over the last several years and consider this a very successful investment."

About TPG Capital
TPG Capital is the global buyout group of TPG, a leading private investment firm founded in 1992, with $48 billion of assets under management and offices in Beijing, Fort Worth, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, San Francisco, Shanghai, Singapore and Tokyo. TPG Capital has deep global financial services expertise with investments that have included Bank Thai, BTPN, Fidelity National Information Services, Korea First Bank, LPL Financial Services, Shenzhen Development Bank, Shriram City Union Finance and Taishin Holdings, among others. The Firm also has extensive technology experience with investments that have included Aptina, Hotwire, Intergraph, Lenovo, MEMC, Sabre Holdings, Seagate, SunGard, and Vertafore, among others.

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