The Financial Times writes "EU to revisit money market fund reforms". It says, "The European parliament's new rapporteur charged with overseeing money market fund reform has said she does not want to "destroy" the industry. The European Commission proposed last year that so-called "constant net asset value" funds, which maintain a fixed E1-a-share except in extreme circumstances, should be forced to hold a cash buffer equal to 3 per cent of their assets to help avert a repeat of the "runs" some funds suffered during the financial crisis. Industry figures say this would be uneconomic and would effectively kill off the E450bn sector.... Neena Gill, a UK Labour MEP, who will now attempt to broker a deal on money market these reforms in the new parliament, said: "I want to ensure there is a format there that enables these funds to continue to exist. I do not think it's the job of the parliament to define what sort of investments you have or not." ... She is proposing to hold a roundtable to help find potential solutions in November, with a vote likely to be held in January." In other news, Treasury Today published a story titled, "EMEA Cash Reserves Approach E1 trillion." It reads, "Cash reserves held by corporates in Europe, Middle East and Africa (EMEA) have reached a new high of nearly E1 trillion, according to research published last week. In its 'Cash to Growth: Pivot Point' research report, professional services firm Deloitte found that the 1,200 listed companies in the region have built up their cash reserves by E47 billion over the past year, bringing total cash reserves to E963 billion. This represents an increase of around E250 billion on the reserves recorded in 2007." It adds, "Almost 60% of those surveyed said they intended to invest part of their cash reserves in the coming year. Of these corporates, 54% said growth would be the main focus of their investment strategy over the next year. The research also suggests that corporates in EMEA are looking to invest cash reserves primarily in their home markets. Thirty-five percent of those surveyed said they would make investments within the EU over the next year, while 27% said they would in North America, and 21% in China. However, despite the recent boom in interest in emerging markets, respondents showed relatively little enthusiasm for investing in these markets. 13% of the companies surveyed said they planned to invest in Brazil, 8% in India and 4% in Russia."
