From the NY Times: Commodities are likely to resume multiyear rallies once a retrenchment that has gripped many markets runs its course, giving investors an opportunity to profit, analysts, economists and fund managers say. "Commodity prices are likely to be firmer in the future than most people until recently have been expecting," said Stuart Schweitzer, a commodity strategist at J. P. Morgan Fleming Asset Management. "They will be volatile, but they will be relatively firm on a sustained basis for some time to come."

Such volatility has been especially evident in the last few months. Gold and silver prices continued to rise in 2004, but less than in the previous two years. And in December they lost some ground, especially silver. Crude oil and refined energy products followed similar paths. The picture for agricultural products is mixed. Coffee and sugar prices are up nearly 60 percent. Cattle gained almost 19 percent, but corn, wheat, cotton and soybeans fell last year, with cotton down 40 percent....Full article: {literal}Source{/literal}

From Reuters.com: Gold prices closed at two-month lows on Monday and silver hit its weakest level in three months, as precious metals lost some appeal due to a bounce in the dollar and lower crude oil prices, traders said. Few buyers at the start of the year, after gold turned in a strong performance in 2004, disappointed traders who were hoping for more safe-haven buying amid violence in Iraq, fears of inflation and the dollar's poor outlook.

"I think a lot of people were expecting new money to come into the market, and when it didn't, gold and silver started breaking down through technical levels and we saw continued liquidation," a trader at a large international bank said.

Bloomberg writes today copper futures in Shanghai and New York fell as some speculators sold the metal to lock in gains after prices rose to a 15-year high yesterday. Reuters article: {literal}Source{/literal}

From the NY Times: This is going to be the year the world learns to live with a cheaper dollar. How well it does that may have a profound effect on prospects for continued world growth. That, at least, is the predominant opinion as 2005 begins. The dollar's travails dominated the market news in the year just ended and were all the more important because they influenced perceptions of other events. The big rises in gold and oil seemed larger when measured in dollars than they did when calculated in euros or yen.

But the most important fact about currency markets in 2004 was that the dollar did not budge against the Chinese yuan, or against other Asian currencies that are effectively tied to the dollar. The big issue this year will be whether those ties are broken, and, if so, how markets and economies will react. Full article: {literal}Source{/literal}

CME, the largest U.S. futures exchange and the largest regulated marketplace for foreign exchange (FX), today announced that it will host its first-ever Global FX Summit on Wednesday, January 19, 2005. The half-day summit, to be held at CME, will feature foreign exchange industry leaders including roundtable discussions. {literal}Source{/literal}

From Bizjournals.com: SunGard President and CEO Cristobal Conde announced in October that the company plans to split in two by the end of the first quarter of 2005. SunGard's software and processing business is the larger of the two, generating about 60 percent of SunGard's revenue. It employs 10,000, has more than 15,000 customers, including the world's 50 largest financial services companies, in more than 50 countries, and had revenue of $1.8 billion and operating income of $324 million, excluding corporate expenses and merger costs, in 2003.

SunGard Availability Services has more than 2,000 employees and 3 million square feet of secure space in 60 locations to serve 10,000 customers. In 2003, it had revenue of $1.2 billion and operating income of $340 million, excluding corporate expenses and merger costs. Full article: {literal}Source{/literal}

From Reuters.com: With wit and irreverence, publisher Roy Weitz has been spearing the titans of pooled investing in his online newsletter since 1996. "I started out kind of cynical and skeptical, and now I am even more cynical and skeptical," he said. "People in the financial services industry can be snakes ... and investors really need to protect themselves."

Oh, and here's one other thing to know about Weitz: He invests his own money almost exclusively in mutual funds, both index and actively managed. At the end of the day, Weitz loves them and says the industry is "cleaner and much more investor-friendly and consumer-friendly than it has ever been." He's not unlike the investing public....Full article: {literal}Source{/literal}

From the IHT / NY Times: With the arrival of the new year, 12,000 industrial plants across the European Union will face new limits on their carbon dioxide emissions, the first step in putting into practice the requirements of the Kyoto Climate Protocol.

This ambitious experiment, spanning all 25 European Union countries, is intended to prepare them for the Kyoto treaty, which requires the nations that signed it to cut carbon emissions beginning in 2008. Many European companies fear they will be at a competitive disadvantage compared to their American rivals, which are not subject to compulsory constraints because the United States did not sign the accord.

London, as Europe's financial capital, is building a reputation for expertise in carbon-related finance, while investment trusts and banks like Fortis in Amsterdam and Caisse des Dépôts et Consignations of France are gearing up for what they expect to be a lucrative business in trading emission rights. Many executives expect the United States to eventually join some form of post-Kyoto global agreement. They note that some American multinationals with foreign operations must comply with the new regulations but have no opportunity to cash in on emission-reduction efforts at home. Full article: {literal}Source{/literal}

The international derivatives market Eurex has closed out 2004 with a record volume of 1.07 billion contracts (2003: 1.014 billion contracts), thus remaining the world's largest derivatives exchange. In December Eurex trading increases more than 20 percent to 80 million contracts. No online Source

Deutsche Boerse has no plans to sell Clearstream in LSE takeover bid
German stock market operator Deutsche Boerse has no plans to sell its clearing subsidiary Clearstream as a concession to persuade the London Stock Exchange to accept the Frankfurt stock exchange's bid for the LSE, a spokesman said.
http://www.channelnewsasia.com/stories/afp_world_business/view/125488/1/.html

Deutsche Boerse to up LSE bid
The LSE said the December offer undervalued its business Germany's Deutsche Boerse is reportedly prepared to raise its proposed offer for the London Stock Exchange (LSE) to £1.5bn ($2.88bn).
http://news.bbc.co.uk/1/hi/business/4141517.stmh

Rivals in LSE auction get down to brass tacks this week
THE auction for the London Stock Exchange will begin in earnest this week when leaders of Euronext and Deutsche Börse, the two contenders, meet the LSE bosses.
http://business.timesonline.co.uk/article/0%2C%2C8209-1424511

Furse fixes crucial meetings as LSE bidding war hots up
Clara Furse, chief executive of the London Stock Exchange, is set to hold crucial meetings this week with potential bidders from Frankfurt's Deutsche Börse and the Paris-based Euronext concern in an attempt to get the best-possible deal for members and shareholders.
http://uk.biz.yahoo.com/050103/17/f9jif.html No online Source

According to German financial regulator BaFin the number of hedge funds will increase significantly. Horst Nottmeier, director of the hedge fund department of BaFin said the agency is about to approve several hedge funds, with about a dozend being checked right now. Financial firms have anounced more applications, so that Nottmeier said “we’re talking about 20-30 new projects”. So far the regulator needed about three months for an application, which according to Nottmeier will be speeded up. In German: {literal}Source{/literal}

I just came across this interesting article in Menafn.com “Doha Bank launches three new investment schemes”, which, for an uninformed Westerner like myself, lifts one of the veils that covers the art of Islamic investing: Doha: The Doha Bank yesterday launched its Al Jana Deposit Scheme that offers attractive, long-term gains as well as valuable free gifts to customers while giving them the option to choose between interest or vehicles and villas. The scheme, available in three different versions, start with deposit of QR100,000 or multiples, in Qatari riyal or US dollars, R Seetharaman, acting general manager at the bank, said.

The third scheme is suited for clients who prefer Islamic banking since this option does not offer an interest. Under the scheme, depositors can avail of very high value gifts from the bank in the form of expensive cars or flats and villas...Full article: {literal}Source{/literal}

AFX / Yahoo.com: The Japanese government is considering proposing expanding an currency swap agreement among Asian nations aimed at minimizing the effects of sudden funding crunches in the region, the Nihon Keizai Shimbun reported without citing sources. The currency swap facility is available to eight nations, including China, South Korea, Thailand and Indonesia. The Japanese government plans to finalize details of its proposal ahead of a gathering in May of finance ministers from Japan, China, South Korea, and of the 10 member nations of the Association of Southeast Asian Nations (ASEAN).

The 1997 Asian currency crisis triggered discussion of creating a currency swap agreement. The IMF created a facility for emerging nations to receive loans in case of emergency, but abolished it in 2003 because no country had used it. But with hedge funds again sharply increasing their investments around Asia, many countries in the region feel the need to create a structure to prevent a similar currency crisis from recurring. {literal}Source{/literal}

Lazard finalises plans for $3.2bn New York flotation
The listing of the 156-year-old banking partnership on the NYSE will be the biggest flotation of an investment bank since Goldman Sachs (London Times)

Canadian financial firms step up tsunami relief donations
The Canadian financial services industry has joined the worldwide tsunami relief effort. Canada's big banks, in addition to donating a total of $790,000 themselves, are also accepting Red Cross donations at any of their branches.

Editor’s Note: I read yesterday that an UN institution (UNIDO) said if all European Union member citizens would donate EUR 200 this would just make up for the material damages.

ETFs went mainstream in 2004
For exchange-traded funds, 2004 was the year when these specialized investments moved into the mainstream. As record fines and regulatory settlements battered the mutual fund industry, many investors turned to ETFs for their low costs, tax efficiency and protection from trading abuses. (CBS.MW)

Big Yen jump could surprise stock markets in 2005
A sharp rise in the yen against the dollar is one of many possible events that might surprise market participants (Asia Pulse)

Asian bank, retail stocks may shine
Asian bank, retail and phone company shares may outperform benchmark indexes this year because of increased spending by consumers and companies. "The next stage of the Asian economic cycle will be domestic expansion," said Michael Koh of JF Asset Management Ltd, which invests US$47 billion in Asia. "Rising consumer spending will lead the next rally," he said. (Chinaview.cn)

Citigroup names China CEO in management shuffle
Citigroup has named Richard Stanley to its newly created role of China chief executive, according to an internal memo obtained on Tuesday. Citigroup is targeting China as a key growth market and the new position will be responsible for managing mainland expansion in the coming years. (Reuters) No online Source

GAIM USA 2005: January 18-20, 2005 * Boca Raton Resort * Boca Raton, FL
Register by January 7th and save $400:

Over 800 senior industry leaders are expected in 2005. Book today, the hotel will sell out soon!

At GAIM USA 2005, the largest gathering of hedge funds in the USA , you will find assembled the most senior and expert industry leaders who will share with you their unique insights into how the industry is going to meet its challenges and where the strategic investment and business opportunities will be in 2005. There is no better place to get an early start to achieve many of your key objectives in 2005, and get incisive information on some of the most pressing questions facing the industry

Hear some of the world’s leading investors discuss the criteria they employ in considering future allocations to the hedge fund sector. You will get a good understanding of how you need to change or adapt your products and services to meet the needs of the institutional client.

Plus…over 12 hours of networking breaks, cocktail receptions and luncheons during the event!

Register by January 7th and save $400: To Register or for more information, visit www.gaimusa.com
Please mention priority code: XUAMB

2 Day conference: 31 January – 1 February 2005, The Selfridge Hotel, London

10% REBATE for Alternative Market Briefing Readers (quote AMB) and FREE to attend for institutional investors.

Attend Finance IQ's Generating Absolute Returns for Pension Funds - a pension fund packed conference where huge opportunities exist for hedge fund providers who have established relationships with current and future investors.

Your clients - institutional investors - are coming so they can hear from top hedge fund experts such as Christopher Fawcett from Fauchier Partners LLP, Simon Ruddick from Albourne Partners, James Walsh from Hermes Pensions Management, Chris Mansi from Watson Wyatt, and many others regarding the changing nature of absolute return investment strategies.

The following organisations will also be presenting at this exciting event: ABP Investments, Lloyds TSB Group Pension Fund, Asterias, Clwyd Pension Fund, EDHEC Business School, the Financial Services Authority, Lovells, Mercer Investment Consulting, Pacific Alternative Asset Management Consultancy, Sabre Fund management Ltd., Schneider Capital, Merseyside Pension Fund, Skandia life and Insurance Company.

To guarantee your place visit: www.iqpc.co.uk/GB-2314/amb email: enquire@iqpc.co.uk or call +44 207 368 9300

1 - 3 February, Steigenberger Frankfurter Hof, Frankfurt, Germany

Get the definitive facts on the German hedge fund market at Germany's premier hedge fund event for investors and fund managers.

Conference highlights include:

• Are the new rules presenting real opportunities?
• Analysis of local single hedge funds and funds of hedge funds trends
• How much money has actually been allocated to hedge funds in Germany?
• Focus on German investors - who are they and what are they really buying?
• How is Germany positioning itself against other major hedge fund markets
• Successful styles and strategies in challenging times

Top-level speakers include:

• Alexander Appelt, Senior Portfolio Manager, SwissLife Germany
• Ernst-Ludwig Drayss, Partner & CIO, Berlin & co. KGaA
• Fred Siegrist, Co-Head & CIO, RMF Investment Management
• Alberto Giovannini, CEO & Director, Unifortune SGR SpA
• Ulf Becker, Head of Equity Hedge Funds & Senior Portfolio Manager, Lupus Alpha

To obtain your 10% rebate as an Opalesque subscriber, call Naheed Sharmin on +44 (0) 20 7827 5980 or mailto:naheed.sharmin@terrapinn.com. Website: www.hedgefundsworld.com/2005/hfw_DE

Now that the SEC has voted to adopt Rule 203(b)(3)-2 requiring the mandatory registration of hedge funds, the industry is grappling to come to terms with its implications and the practical steps necessary for achieving compliance, while ensuring minimum disruption to day-to-day business. We will address not only the latest SEC developments, but will also provide essential tools for tackling operational and valuation challenges. Whether you are a registered or unregistered hedge fund or a fund service provider, this seminar offers you crucial and timely insights on how to succeed in today’s highly competitive and rapidly changing environment.

Whether you are a registered or unregistered hedge fund, an investment advisor, compliance officer, fund manager, prime broker, custodian, fund administrator or attorney, come to this event to improve your knowledge on:

• Dealing with the SEC: experiences from the front line and lessons learned
• Portfolio valuation strategies: best practices and case studies
• The use of soft dollars by hedge funds in the changing regulatory arena

NEW - Investor panel: How do institutional investors define hedge fund best practices
NEW - Best practices in operational risk management
NEW - Hedge fund roundtable: fund managers share their first-hand experiences
NEW - Best practices for marketing your hedge fund
PLUS – Post-Conference Workshop: Nuts & Bolts for Building an Effective Compliance Program. Opalesque readers will get a 10% rebate if they call the hotline and identify themselves. http://www.iievents.com/default.asp?Page=12&lID=31&LS=Referrer%20-%20http://iievents.com

4th Annual Blue Ribbon Hedge Fund Symposium January 30- February 2, 2005

“The Premiere Meeting Place for Hedge Fund Managers and Institutional Investors

Fairmont Scottsdale Princess – Scottsdale, Arizona

Each January 200+ hedge funds, fund of hedge funds, pension plan sponsors, consultants, and other decision makers convene in Scottsdale to take stock of the burgeoning hedge fund industry. This year's focus is on how to obtain alpha through the investment strategies used by today's best and brightest managers.

www.srinstitute.com/cx551

6th annual Hedge Funds World Middle East 2005 at the Jumeirah Beach Hotel, Dubai, UAE

The Middle East's premier hedge fund event for investors and hedge fund managers: Be at the forefront of the Middle East’s lucrative hedge fund market in 2005!

With a strong and sound basis for exponential growth, the Middle East is fast becoming a real focus for international hedge funds. Hedge Funds World Middle East delivers on meeting the educational and business needs of the Middle Eastern investor. Indeed, last year an unprecedented 43% of all attendees were institutional investors! 6 important facts about Hedge Funds World Middle East:

• 425+ participants in 2004
• 43% investor audience in 2004
• 40+ expert speakers
• 8+ hours of networking
• 3 days of high-level content
• World-class venue
• ONE PRESTIGIOUS EVENT…

New for 2005: Television coverage on CNBC Arabiya, the Arab world’s first and only Arabic language business and financial news channel

DON’T MISS OUT! To receive your 10% rebate as an Opalesque subscriber contact Naheed Sharmin on: +44 (0) 20 7827 5980 or naheed.sharmin@terrapinn.com

GAIM - The World's Leading Alternative Investment Event Series Launches gaimAsia:

• 11 years track record of delivering the best. The GAIM team has an unrivalled reputation for developing winning programmes and forging enduring partnerships that attract in quantity, the most influential and successful high quality speakers and delegates that everyone wants to meet (1500 attendees at June GAIM 2004)
• Great choice of sessions with 3 concurrent streams daily
• The freshest talent and the most senior and respected speakers and delegates - more CEOs and top performing managers than at any other event
• 100+ speakers, including: Clifford Asness, Co-Founder & Managing Principal, AQR CAPITAL MANAGEMENT, Charles Gave, Chairman, GAVEKAL GROUP OF COMPANIES, Michael Sofaer, Managing Director, SOFAER CAPITAL, Masakazu Arikawa, President, SONY GLOBAL PENSION MANAGEMENT CORP. Jerry Wang, Chief Executive Officer, VISION INVESTMENTS , Professor Ross Garnaut, Executive Chairman, SEQUOIA CAPITAL MANAGEMENT, Matthieu Vermersch, Senior Managing Director, EVEREST CAPITAL, Moses Tsang, Chairman, AJIA PARTNERS (HK), Paul Calello, CEO Asia, CREDIT SUISSE FIRST BOSTON, Zhang Haitao, CIO, CITIC CAPITAL, Simon Ogus, CEO, DSG ASIA, Arthur J Samberg, CEO, PEQUOT CAPITAL MANAGEMENT and many more...
• Top level networking in Hong Kong during the week of the Rugby 7s!

Programme and registration details on http://www.icbi-uk.com/r.asp?uID=221 or please call +44 20 7915 5197.

Build your brand and create new business with the intelligent marketing options of the Opalesque Alternative Market Briefing - the industry's favorite hedge fund newsletter! Please email me: knab@opalesque.com for details. Communication that works!

ISSN Number: 1450-1953
Alternative Market Briefing has been called the best news service on hedge funds. Our mission is to intelligently select and timely provide the most important daily news for professionals dealing with hedge funds. Alternative Market Briefing offers both a quick overview and indepth coverage of all subjects through the "Source" link that leads you to the publicly available online news sources. The concept that we follow is that of a "clipping service" - the added value for you is that we screen, intelligently select and efficiently present each day the most important hedge fund news. The majority of the news sources used do not require a subscription, however some may ask you to register. Once registered, you can access these news sources freely. Please mail us your feedback and suggestions to feedback@opalesque.com - we love to hear from you!

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Disclaimer: The information contained in this newsletter does not constitute an offer or solicitation to sell any security or fund to or by anyone in any jurisdictions, nor should it be regarded as a contractual document. Under no circumstances should the information provided on this newsletter be considered as investment advice, or as a sufficient basis on which to make investment decisions. The information contained herein has been gathered by Opalesque Ltd. from sources deemed reliable as of the date of publication, but no warranty of accuracy or completeness is given. Opalesque Ltd. is not responsible for and provides no guarantee with respect to any of the information provided herein or through the use of any hypertext link. Past results are no indication of future performance. All information in this newsletter is for educational and informational purposes and does not constitute investment, legal, tax or accounting advice.