Good morning, New York. Clocks moved forward yesterday for those in the US. As Europe won’t do the same for another two weeks, this is that blissful period of time when finding mutually convenient times for transatlantic conference calls is a lot less angsty.
CDS contracts on Greece were triggered late on Friday, as declared by the Isda Determinations Committee. The auction is going to be held on March 19. However, there are a few weird contracts out there that may have to be settled outside the normal auction process.
Izzy looked at the implications of the Greek bond swap, going over some research by the team at JP Morgan, mainly as it pertains to the sustainability of the sovereign’s debt.
Property-related investment in China had a strong showing over the last two months compared to other fixed asset investments. Kate looks into government restrictions on property growth, and how that may influence the market.
This morning, Paul reports that Temenos has seemingly walked away from Misys, despite the encouragement of the latter’s largest shareholder, ValueAct Capital Partners. And Gulf Keystone’s prospect in Kurdistan keeps getting bigger. And Tchibo goes for brightly coloured coffee machines to get competitive — a story with a most peculiar Bloomberg headline.
FT AV’s Markets Live
Join Paul and Bryce in discussing the latest on Greece, GKP, and Cove over on Markets Live starting at 11am London Time, 7am New York.
The second Greek bailout is set to be approved in Brussels today, after last week’s successful bond swap. The conditions of the bailout are designed to reduce Greece’s debt-to-GDP ratio to 120.5 per cent by 2020. Spain is also top of the agenda in Brussels after Prime Minister Mariano Rajoy raised his country’s budget deficit goal from 4.4 to 5.8 per cent for 2012, while keeping the 2013 target at 3 per cent. (Bloomberg) But will the release of the second bail-out only provide a short-lived reprieve? (Reuters)
In Italy, Prime Minister Mario Monti tackles labour reform, and will attempt to boost the market by making it easier to hire and fire. (Bloomberg)
Republican candidate watch: Santorum easily wins Kansas, Romney takes Wyoming to extend his delegate lead, which is 442 to Santorum’s 214. (WSJ)
The tax man offers some financial relief for those who have lost homes and businesses in natural disasters in the US this year and last. (Reuters)
Disappointing export growth in China have put a dampener on equities and commodities this morning, off-setting Friday’s better-than expected jobs data out of the US. (FT’s Global Market Overview)
Non-financials have been issuing record amounts in bond markets this year. (FT)
US bank dividends are set to double, as may share buybacks, as the Fed releases results of the latest round of stress tests. (FT)
Raised capital requirements did add to eurozone pressures, says BIS. The requirement for Europe’s largest banks to buttress their capital buffers and raise their tier one capital ratios to 9 per cent by June of this year had destabilised the system by bringing fears of a drop-off in lending and a rise in asset sales “to the forefront of financial market concerns”. (FT)
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