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We are expanding our popular 6am Cut news briefing service, introducing new early morning emails for our readers in the US and across Asia.
From Wednesday, subscribers to this free service will receive three emails a day,
Russian (currency) might
Here’s the rouble versus the euro, courtesy of Reuters:
The Russian currency has appreciated by about 10 per cent over the past three months. Received wisdom puts this down to the rising price of crude,
Repeat after me: CDS are not insurance
Alright, hold it.
In the midst of the ongoing and increasingly heated debate about credit default swaps, be they naked, sovereign or Sharia compliant, one fundamental fact has been overlooked: these instruments are not insurance.
S&P on GMAC: another executive bites the dust? Not surprised.
Standard & Poor’s statement regarding the departure of GMAC’s chief financial officer was a refreshingly forthright portrait of the challenges facing the much-bailed-out company.
We quote, emphasis ours:
A tale of two Athens
What’s that you say, Greece? You’re issuing more bonds? Oh wait, no…
We’re confused. Earlier today the WSJ quoted officials saying they are planning to issue a new series of bonds. But, then the Greek debt agency denied it.
CDS report: Sovereign spreads lost ground
The rally in credit and equity markets lost momentum today amid a dearth of news, either positive or negative. The Markit iTraxx Europe index was over 1bp wider at 75bp, while the Markit iTraxx HiVol was trading around 111bp,
The EMF: run it past us again, please?
We’ve already got in the pop band references, so let’s be serious for a moment. FT Alphaville is still scratching its head over how the proposed European Monetary Fund would work.
We’re not alone. Angela Merkel has already urged caution on the Fund,
Lunch Wrap
On FT Alphaville Tuesday morning,
- The Great British Krona falls down the trade gap.
- UK banks: ratings propped up by government…
- … and worries about balance sheets.
- Tracing China’s Treasury positions.
DE Shaw and other hedgies look to Asia
While hedge funds have been virtually stampeding out of Japan for the last few years, DE Shaw, the $24bn hedge fund founded by Shaw, is set to open offices in Tokyo as well as Shanghai, as part of a concerted push to expand its Asian operations.
A spectre is mildly haunting Europe
…Because European bond yield spreads really were on tenterhooks on Tuesday, after a Fitch analyst commented on the continent’s shaky AAA sovereigns.
As Reuters flashed at the time:
RTRS-RPT-GREEK/GERMAN
Markets Live transcript 9 Mar 2010
Markets Live chat transcript for the chat ending at 12:12 on 9 Mar 2010. Participants in this chat were: Neil Hume, FT Bryce Elder NHHola NHand welcome to Markets Live
Roach: Pooh-pooh to Chinese bubbles
Once again, the China skeptics are out in force, notes Stephen Roach, chairman of Morgan Stanley Asia and clearly not a member of the Sino-Cassandra brigade.
In a Tuesday comment in Germany’s Handelsblatt newspaper,
South Africa: back of the net – not
What happens when your favourite emerging market gets the nod to host a major world sporting event? Sadly, surprisingly little; trends matter more.
A Citi note on Tuesday cuts through South Africa’s World Cup fever:
GBK *alert*
It’s lost the psychologically important $1.50 level (irony intended, readers).
Reasons?
The UK trade gap widened in January to a 17-month high, according to figures released by the Office for National Statistics on Tuesday morning.
EMF – you’re unbelievable
An excuse for a headline — and a video.
Doubts over the feasibility of a European Monetary Fund (EMF) continue apace on Tuesday morning.
German Chancellor Angela Merkel has been warning that such a fund — something along the lines of the international (IMF) version — would require a new European treaty.
Rescuing Annie: an unusual private equity deal
Poor Annie Leibovitz. Imagine facing the prospect of losing several of your many homes, not to mention rights over your multi-million dollar store of snaps. That was the situation facing the celebrity photographer,
Treasuries of the Caribbean (and China, and the UK)
From today’s FT — a bold call from Portales Partners’ Dina Kos:
Now is not the time to be shorting US Treasuries
. . . Last month the Treasury reported its monthly tally of Treasury holders. While foreigners as a group were adding to their Treasury holdings,
Further reading
Elsewhere on Tuesday,
- A harsher view of the post-crisis world.
- Comparing the two depressions.
- US housing: hampered beyond Hamp.
- Zhou me the money, PBOC.
- European bonds: Wall St.
Pink picks
Comment, analysis and other offerings from Tuesday’s FT,
Gideon Rachman: Japan edges from America towards China
How Japan reacts to its new sense of weakness – exaggerated though it may be – will matter to the whole world,
Snap news
Breaking pre-market news on Tuesday,
- Liberty International details demerger plan and announces full year results – statement and statement.
- Shanks ends takeover talks with Carlyle Europe after 120p a share offer – statement.
Cuomo ‘lacks financial acumen, hates banks’, Bove says
In case you were wondering just how much Dick Bove <3 banks and dislikes regulation, the following CNBC piece should make his feelings abundantly clear:
New York Attorney General Andrew Cuomo is the “father of the subprime crisis”
Greece v everyone, BaFin and speculators edition
Hot on the heels of a declaration from the German finance regulator that it had not found any evidence of derivatives being used to speculate against Greek debt comes the following from the NY Times:
The Greek prime minister on Monday called on the United States and the European Union to crack down on speculative trading,
BaFin says no evidence of malign Greek CDS speculation
Just out from the Die Bundesanstalt für Finanzdienstleistungsaufsicht, better known (for obvious reasons) as BaFin, the German financial regulator:
Die Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) hat –entgegen anders lautender Berichterstattung – bislang keine Anhaltspunkte dafür gefunden,
The FSA is not a fan of life settlements
Add the UK’s financial services regulator to the cacophony of voices expressing concern about so-called life settlements.
First, a definition of the term, via Standard & Poor’s:
Life settlements,
Outshone by Shanghai’s rising sun?
Foolish Pru! You picked the wrong Asian secondary listing. For Monday has brought yet more news of the Shanghai Stock Exchange’s bid for complete world domination. (Quaking in your boots yet, Hong Kong?)
Specifically,