FURTHER FURTHER READING
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Here are questions to which the answers remain disputed:
1) To what extent will discouraged workers return to the labour force if the economic recovery accelerates? Read more
When Morgan Stanley’s Huw Van Steenis and his colleague Charles Goodhart ventured into these pink pixels last September, arguing that Britain needed a housebuilding and house-buying support scheme if the economy was going to achieve ‘escape velocity,’ the analytical duo probably didn’t count on getting dragged through the august columns of the FT editorial page.
In part 1 we explained the basics of purchase vs pooling accounting. In part 2 we looked back at the history leading up to FASB’s 2001 decision to mandate purchase accounting and at some of the contentiousness around that decision.
Here we will leave the posturing and examine whether the decision made conceptual sense. Read more
In part 1, we explained the basic differences between two accounting treatments for business combinations: pooling-of-interests accounting and purchase accounting. Beginning in 2001, companies were forced to adopt the purchase method which mandated the creation of goodwill on the balance sheet as well as the amortisation of that goodwill on the income statement.
In this post we’ll explore the recent history behind the codification of these methods. Read more
Can esoteric accounting rules help prevent a crash in tech M&A?
The recent wave of deals is the biggest since the turn of the century the data tell us. The frenzy this time involves social media and mobile communications rather than desktops, web 1.0 and internet infrastructure. Yet it brings the same worries that accompany all potential market bubbles: immature assets commanding stratospheric valuations but whose profits never materialize to the downfall of their acquirors. Read more
Sports Direct shareholders are a happy bunch. From less than a pound five years ago, the UK retailer is now worth more than eight, and the shares trade at almost three times their 2007 listing price. So time, perhaps, to thank the chief executive.
From Tuesday’s notice of the annual meeting. Read more
Live markets commentary from FT.com
Co-op “ungovernable” says CEO || Vivendi asks for final SFR bids || FCA tackles insurance “add-ons” || Foxton’s special dividend || Sports Direct Owner pays himself £65m || Bob Crow dies || Markets Read more
Double double, toil and trouble…
Morgan Stanley’s US quant team has an eye on the market cauldron, and the simmering has a late nineties feel to it: Read more
I mean take Chaori 11 again, China’s first onshore bond default.
Far from being China’s Bear Stearns it might simply be a sign that China has arched its eyebrow at the solar industry (and other private, vulnerable industries that lack political clout) and decided to stroll away… with its arm still draped around the shoulder of privileged enterprise. Read more
Markets: Despite a lack of momentum from Wall Street and the absence of encouraging developments regarding Ukraine, Asian markets were rebounding on Tuesday. Japan’s Nikkei 225 index was the lead performer on Tuesday, rising 0.7 per cent after shedding 1 per cent on Monday. The solid rebound came just ahead of the Bank of Japan’s monthly monetary policy meeting, at which the central bank met economists’ expectations by holding policy steady. (FT’s Global Markets Overview) Read more
The latest dossier from Pershing Square has landed, and this time the Herbalife short campaign would like to draw your attention to a Dallas-based marketer of the nutritional-shake business opportunity.
Dan Waldron is a 30 year Herbalife veteran. He is affiliated with several businesses that have ties to Herbalife and has the broad smile of a self-made man when he poses for photographs with Michael Johnson and Des Walsh, chief executive and president of the multi-level marketing group.
More on Mr Waldron in a moment, but we thought it might be useful to explain where Pershing are going with all this. In addition to the lobbying battle, Bill Ackman and co are attempting to show a pattern of bad behaviour by senior members of the Herbalife hierarchy that might interest the US authorities. Read more
Live markets commentary from FT.com
Fyffes and Chiquita are to merge || Japan heading for first annual current account deficit since 1980 || Russian forces advance in Ukraine || Illiad customer nos up 54 per cent || UK tax man in housing clamp down || Unilever to build Eithiopia factory || Markets: Emerging markets weak, industrial metals prices slide Read more
Citi would like to draw your attention to what it calls “an inconvenient truth” about Invesco. Since the group said in October that it would part ways with its best known fund manager, Neil Woodford, the worst performing asset management stock has been one of the best performing asset managers.
February was a good month for the hedge funds, erasing January losses and then some, according to HFR.
The average hedge fund was up 2.1 per cent in February, to leave it up 1.5 per cent for 2014 so far. Read more
Last week’s default of little Chaori 11, China’s first onshore corporate default, brought with it some analyst hyperbole which has been rightly called out. Leaving aside for a moment this was BofAML’s second Bear Stearns call this year, their point was that Chaori 11 would be the moment that the market started to seriously re-assess financial risk in China. So far, not so much.
Markets: Asia’s major bourses fell into the red on disappointing economic data from China and Japan, while the Chinese currency resumed its decline with a sharp drop. Markets in Greater China fell after trade data over the weekend showed Chinese exports fell 18 per cent in February year-on-year. The People’s Bank of China guided the renminbi lower, cutting the daily reference rate by an unusually wide 0.18 per cent. The currency weakened as much as 0.49 per cent against the dollar. (FT’s Global Markets Overview) Read more
If Janet Yellen and the FOMC are breathing a sigh of relief after today’s jobs report, it’s probably just a very shallow sigh.
In the household survey, the unemployment rate inched back up to 6.7 per cent because of both new entrants to the labour force and weak employment growth. The Fed will certainly discuss at length how to change forward guidance at their meeting later this month, though they won’t have to discuss it with the rate having already crossed the 6.5 per cent threshold. Read more
Dorian Satoshi Nakamoto, the LA-based man that Newsweek alleged on Thursday was the probable creator of the Bitcoin protocol, denied all involved in an AP interview — but the plot continues to thicken.
Surprise, surprise — the user is claiming that the man featured in the Newsweek article is not Satoshi Nakamoto.
At this stage, one has to ask what’s really preventing the real Satoshi from revealing his true identity and claiming his fortune? (And there are reports that the bitcoins associated with Satoshi are already on the move on Friday.) Read more
Live markets commentary from FT.com