The 6am Cut London | FT Alphaville

The 6am Cut London

Goldman PR fallout continues; the company’s market cap lost $2.15bn yesterday. (Bloomberg)

– Rising concerns over eurozone fiscal treaty. There are fears ratification could fail in several countries as Netherlands becomes the latest country to show strong signs of poor political support. (FT)

– Fitch puts UK on negative outlook: The ratings agency revised the outlook downward from ‘stable’, indicating a “slightly greater” than 50% likelihood of a downgrade within two years. (Bloomberg)

– Bo Xilai replaced as Chongqing chief: A CCP leader who led a revival of Maoist ideology was removed from his post as leader of a southwestern mega-city (WSJ). The news, reported in Xinhua, came a day after Premier Wen launched an unusual attack on party conservatives, seen as a dig at Bo and the ‘Chongqing model’, rather than a sincere pledge of reforms. (FT)

Lord Turner wants radical action on shadow banking. The FSA chairman said “This time we need to ensure that we are sufficiently radical,” in a speech last night. (FT)

Tesco’s Brasher to step down as UK head. The move follows poor Christmas trading reported in January. An announcement is expected this morning. (FT)

Cameron and Obama discussed tapping oil reserves during their meeting yesterday, according to two sources. US officials have said over the past few weeks they would consider a release from the strategic petroleum reserve as prices rise. (Reuters)

Oil prices and drought are likely to increase inflationary pressures in the UK, analysts say. (FT)

Standard Chartered employee detained in China. The Singaporean citizen is reportedly being investigated over work she did for a client who fled the country. (WSJ) The bank confirmed the detention but gave little detail. (Bloomberg)

YPF stripped of Argentine oil concessions: the Patagonian province of Chubut has stripped Spanish-controlled oil company of two concessions, saying it failed to fulfil investment promises. (FT)


– William Cohen is amazed that anyone broke the Goldman omerta (FT)

An editorial defending Goldman gets an extremely unhappy response from readers (Bloomberg)

Dave Rosenberg calls out this stockmarket rally: it’s running on empty (FT)

Google is going to change its search algorithms over the next few months (WSJ)

Some Apple analysts are getting very excited about shares hitting $700 on new iPad (Bloomberg)


The equities rally goes off the boil as optimism about the US and the eurozone subside. US Treasury yields hit a four-month high amid a wave of auctions and falling hopes for more easing.