Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
BullionVault – The Gold Price fell sharply against a strong US Dollar on Monday morning, falling through what one Asian dealer called "technical and psychological support at $942" to record the lowest Gold Fix so far this month at $937.50 an ounce.
Crude oil sank below $66 per barrel, while base metals and silver lost more than 3%.
Adding to Friday’s 0.7% loss despite news that France and Germany crept out of recession between April and July, world stock markets sank 1.4% early Monday on average – the biggest one-day loss in more than six weeks – after Japan reported 0.9% growth in its second-quarter GDP.
The Australian – The move wades the US into a fierce battle between the UK and other parts of Europe over how tough regulation should be. Some nations, led by Germany and France, are calling for wholesale regulation of financial services in the wake of last fall’s crisis, but the UK says that overly stringent rules would damage its large financial sector and close off US and other funds to European investors.
The US and UK are lining up to change the European Union’s proposed Alternative Investment Funds Directive, a sweeping bid to overhaul regulation of hedge funds, private equity and other alternative investment funds.
CNN Money – They are finally getting more serious on regulation. But success will hinge on delivery, not just detail.
The G20 summit in London will adopt a more detailed approach to overhauling the world’s financial rules in a bid to avert a rerun of the credit crunch that has floored economies.
Last November the G20 couched regulatory reform in general terms and Thursday’s summit will inject some much-needed detail in a bid to quell criticism from Germany and France.
Boston Globe – The leaders of Germany, Britain, France, and Italy yesterday said that the resources of the International Monetary Fund should be doubled, to $500 billion, to help head off new problems in countries already hit hard by the global economic and financial crisis.
The officials also said, in a statement clearly aimed at hedge funds and other big private pools of capital, that "all financing markets and participants" need to fall under regulation in the future. And they vowed to make a tough push against tax havens.
With one eye on a crisis that is rapidly spreading to Eastern Europe and even countries that use the euro, the leaders highlighted the crisis-prevention role of the IMF, an institution whose relevance to the current global economy seemed in doubt only a few years ago.
