LONDON FULLY BOOKED but places at Manchester and Birmingham still available so BOOK NOW for the Stock Market Roadshow 2010 with TD Waterhouse.
Key topics to be presented by industry experts:
1. An introduction to the stock market
2. An introduction to covered warrants3. Trading strategies
Click here to access our seminar information.
NEW COVERED WARRANTS ISSUED ON WEDNESDAY
This week we have a brand new issue of 21 covered warrants on a range of underlyings - currency, commodity, indices and equities. Silver, DAX and Man Group are just some of the underlyings we will offer.Click here to see the full new issue list.
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STILL LOOKING FOR YIELD?
In addition to the 11 Synthetic Zero products, Société Générale has launched 4 new products on UK equity shares: BT, Cable & Wireless and Centrica and the FTSE 100.Click here for UK equity Synthetic Zero Factsheet
The Synthetic Zero series, is designed for investors who have a moderate view on equity and wish to gain potential enhanced performance compared with current low cash returns.------------------------------------------------------------------------------
LAST WEEKS SEMINAR A GREAT SUCCESS!
Thank you to all who attended our seminar last week on Hedging, we hope you found it useful. If you were not able to make it, why not register to our next one on 2nd March where we will be discussing:Asset Allocation: Diversify your portfolio with Lyxor ETFs
Our seminars are free of charge and we provide a range of materials to compliment your learning.
They are part of an ongoing series of workshops designed to educate our clients and allow them to make well-informed investment decisions.
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Free SG Workshops
Please click on the below link to access our 2010 seminar calender and details on how to register.
Click here------------------------------------------------------
FT Money Gym
By doing this workout you will find out more about the basic principles of Covered Warrants. Click here------------------------------------------------------
Lyxor ETF Brochure
Experts in ETFs since 2001. Lyxor offer over 138 products over multiple asset classes. Click here to download the new brochure------------------------------------------------------
First edition of STRIKE magazine for 2010 - jam packed with articles to keep you up-to-date on Listed Products, why not try our quiz! Click here ------------------------------------------------------
Product Range booklet - giving you access to our entire product range in one easy document.
Click here------------------------------------------------------
Special Supplement - we take you on a journey through 20 years of Listed Products.
Click here
8th February 2010
This content has been provided by Andrew McHattie from The McHattie Group
It has been a tumultuous week in the markets, with steep price falls across many asset classes in response to renewed investor concerns about debt. The root cause of the problems now, which lie with the massive budget deficits in European countries such as Greece, Portugal, Italy, Spain and Ireland is the perception that the massive government bailouts of 2009 have only served to transfer the debt problem from the private financial sector to public finances. Nerves over how these nations are going to cope with their high debt burdens has led investors to reduce their risk profiles, which has been bad news for equities, for commodities, and for high-risk currencies such as the euro and sterling.
Starting with the currencies, which are right in the firing line, the euro has been hammered as money has flowed out of the eurozone. Against the US dollar the euro has sunk over the last week from US$1.3960 to US$1.3660, boosting the value of the EUR/USD_1.40_Put_18-Jun-10 (SU50) covered warrants by 33%.
Sterling is also perceived as a high risk currency, particularly as we have our own issues with the budget deficit and political uncertainty ahead of the General Election. The pound has not fared much better that the euro, dropping against the dollar (which is the default currency for many during times of heightened risk aversion) from U$1.6130 to US$1.5630. The GBP/USD_1.50_Put_19-Mar-10 (SU57) covered warrants have sniffed the potential for intrinsic value and have jumped by 102% over the week. Put covered warrants on sterling against the Japanese yen have also risen for the same reason.
Commodity prices are geared to the health of the world economy, and are as a result very sensitive to the escalation of concern about European deficits. Prices have dropped sharply. The copper price has fallen to around US$6300 per tonne, driving big returns from certain covered warrants. The Copper 03/10_6000_Put_03-Mar-10 (SU45) series has leapt by 274% over the last seven days. The aluminium price has also softened, as have the prices for gold and silver. Even for these precious metals, the strength of the US dollar has overcome the utility of their status as a safe haven.
Turning to stocks, these have dropped across the world. In the US, poor employment data has not helped, and in Japan the news fromToyota has helped to put a brake on the market. At home, the FTSE 100 Index ended the week at 5060, and the FTSE 100_5000_Put_19-Mar-10 (SU34) series ended the week with a gain of 32%. There were some stock winners, such as Vodafone, but the overwhelming trend has been down.
Andrew McHattie
Global Equity Benchmarks Index YTD perf Weekly perf Close FTSE 100 -6.50% -2.46% 5060.92 FTSE 250 -2.91% -2.18%
9035.91 DJ EUROSTOXX 50 -11.24% -5.23% 2631.64 DOW JONES IA -2.78% -0.34% 10138.14 NIKKEI 225 -4.64% -1.38% 10057.09 NASDAQ -6.89% -0.51% 1732.15
Currency Benchmarks Benchmark YTD perf Weekly perf Close* GBP/USD -3.25% -2.25% 1.5626 GBP/EUR 1.77% -0.49% 1.1475 EUR/USD -4.94% -1.78% 1.3616 USD/JPY -3.98% -1.03% 89.34
Commodities Benchmark YTD perf Weekly perf Close* Gold -4.39% -2.93% 1049.2 Silver -12.43%
-8.73% 14.795 Oil -11.21% -2.75% 70.72
*Mid Price.
Volatility Benchmarks Benchmark YTD perf Weekly perf Close VIX 8.95% -13.51% 23.62 VDAX 9.84% -0.74% 22.89
Source: Bloomberg as at 05/02/2010Andrew McHattie MA (Cantab) founded The McHattie Group investment publishing business. He has been the publisher and editor of the UK’s leading warrants newsletter “Warrants Alert” since its inception in 1989. He also edits a range of other warrant publications and services including “Warrants Alert Professional” and “The Warrants Directory Online.” He is chairman of McHattie Investment Management, and the manager of the McHattie Warrants Alert Fund unit trust.
The above text expresses the views of the author and not SG. The McHattie Group is regulated by the Financial Services Authority.
Issued in the UK by Societe Generale, a firm authorised by the Banque de France and subject to limited regulation by the Financial Services Authority. Details about the extent of our regulation by the Financial Services Authority are available from us on request. Lyxor and Lyxor etf are trade names of Societe Generale.
Top moving covered warrants for week of 29/01/10 - 05/02/10 Code Underlying Spot Covered Warrant Price* (GBP) Covered Warrant Price Move^ Type Strike Expiry UP Movers SU45 COPPER 03/2010 6,300.75 0.10 +274.05% PUT 6000 03 Mar 10 SL57 COPPER 06/2010 6,300.00 0.02 +125.00% PUT 4000 02 Jun 10 SV52 ALUMINIUM 1,976.50 0.26 +108.00% PUT 1900 03 Mar 10 SU57 GBP/USD 1.5645 0.05 +102.13% PUT 1.5 19 Mar 10 SW10 GBP/JPY 139.850 0.24 +92.68% PUT 140 19 Mar 10
DOWN Movers SU56 GBP/USD 1.5645 0.02 -64.62% CALL 1.65 19 Mar 10 SW07 GBP/JPY 139.8500 0.03 -63.92% CALL 150 19 Mar 10 SV59 SILVER 14.95 0.06 -58.15% CALL 19 19 Mar 10 SV62 SOYBEANS 9.18 0.01 -57.69% CALL 10 19 Feb 10
SU44 COPPER 03/2010
6300.75 0.12 -55.88% CALL 6500 03 Mar 10
To access the full covered warrants list, please visit www.sglistedproducts.com or send a request by email to listedproducts@sgcib.com
*Mid Price. ^Offer to Bid.
Source: SG as at 05/02/2010. The definition of the underlined financial terms is available by clicking on the term.
Lyxor ETF Update Lyxor Exchange Traded Funds (ETFs) are passively managed index tracking funds listed on the London Stock Exchange. Index TIDM First listing Monthly
Perf^Week on
week Perf^Closing
price* (GBp)FTSE 100 L100 15/05/07 -4.85% -2.42% 918.84 MSCI Emerging Markets LEME 14/01/08 -11.75% -3.97% 578.13 Reuters/Jefferies CRB index LCTY 28/06/07 -9.43% -1.76% 1620.13
Reuters/Jefferies CRB Non-Energy index LCNE 28/06/07 -8.65% -2.46% 1398.38
To access the full ETF list and ETF brochure, please visit www.lyxoretf.co.uk or send a request by email to info@lyxoretf.co.uk
*Mid Price
Source: Bloomberg as at 05/02/2010. In accordance with the Rules of the Financial Services Authority it is not possible to show the past performance of Lyxor ETF's which are less than 12 months since their launch. Past Performance is not a reliable indication of future performance.
Disclaimer
Listed Products are not suitable for everyone. You should not deal in Listed Products unless you understand their nature and the extent of your exposure to risk. You should be satisfied that they are suitable for you in the light of your circumstances and financial position. This disclaimer cannot disclose all the risks and other significant aspects of Listed Products. If you are in any doubt you should consult an appropriately qualified financial advisor.
Lyxor ETFs are open-ended mutual investment funds established under French Law and approved by the Autorite des Marches Financiers. The funds are UCIT III compliant however only those funds recognised under S.264 of the Financial Services and Markets Act 2000 may be promoted to retail investors in the UK.
A list of recognised funds with prospectus is maintained on www.lyxoretf.co.uk. Any investment in Lyxor ETFs carries with it certain risks set out in the Prospectus. Lyxor ETFs are not suitable for all investors, it is recommended that potential investors study the Prospectus and seek their own independent financial advice before making any decision to invest in Lyxor ETFs. SG Option Europe may be the only market maker.
Investors' capital is at risk.
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