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SIBOS Day Two: I said RMB, not Rumba

September 20, 2011 by skinnercm   Comments (0)

A good night generally, with various cocktail and drinks receptions, dinners and dalliances.  Being on UK clocks, most of us Europeans were then awake and active at four in the morning, and looking for action on SIBOS day two.

My own morning began with a nice meet up for breakfast with JPMorgan.

JPM were rolling out research they had just completed on the major counterparty trends in treasury services worldwide.

That’s bound to keep you awake over an early breakfast isn’t it?

Actually, it did keep me awake, mainly because it felt like early afternoon my time but also because it showed that 37% of banks currently provide Remnimbi (RMB) services to their customers but ,of those that do not, over half (52%) intend to in the next year.

Wowser, those little Chinese currency units are moving.

This was based upon research with over 100 banks that JPM sponsored with FIMetrix, a market research company.

There was lots more in there but this hit me as it dove-tailed with other news this morning.

First the headline: Could China help Europe conquer its debt woes? which, when reading further, brings to light the importance of China today as the article states that “China suggested that it might be prepared to help Europe by acting as a buyer of last resort by making a major purchase of euro-denominated bonds.”

Combine this with the news that “Investors have pulled more money from U.S. equity funds since the end of April than in the  five months after the collapse of Lehman Brothers Holdings Inc., adding to the $2.1 trillion rout in American stocks”, and you can see the world axis of finance is shifting from West to East.

And yes, I did find John Havens speech far more interesting in print than in person this moarning, as I anticipated yesterday.

The reason being that he did say some things that made sense, and the most critical quote today is that “emerging markets and the consequent rise of intra-emerging market trade and capital flows is one of the most important economic trends of our time. “

Blindingly obvious when you see the headlines this morning, and why JPM and other banks are so focused upon RMB flows today.

In fact, RMB has been a key focus of SIBOS, and I’ll be interested in the Thursday afternoon session  focused specifically on this area therefore.

Meanwhile, post breakfast, it’s off to the innotribe again …

 

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