The (early) Lunch Wrap | FT Alphaville

The (early) Lunch Wrap

Good morning, New York…


Glencore gets Panorama-ed: Kate draws attention to John Sweeney’s report in the Guardian, ahead of the BBC’s Panorama programme on Monday which is set to broadcast a report on alleged links between Glencore’s operations in the Democratic Republic of Congo, and mining for copper ore that’s carried out there by children.

Art attack! Or call it abstract corporate finance, says Paul. A six times market-cap offer from AimCo for V22, a collective art collection, has been rejected. Possibly because its collection is currently being revalued.

Gobbling, gobbling, gobbling: The latest data from Tabb shows that as much as 19 per cent of all equity trade is being internalised by broker dealing banks. As Izzy notes, that means the volume never hits the public market at all. Could it be having a bigger effect on how markets function than people expect?

Bringing Italian and Spanish debt home: Joseph says, hold the phone…something very interesting is happening in the Spanish banks/Spanish sovereign nexus. That’s to say, it could be in better shape than the Italian version of the nexus.

Is China at it again? Izzy wonders if commodity collateralised borrowing could be accounting for the hot money inflows into China which no other statistics can account for.


Goldman Sachs sold nearly half of its remaining stake in the Industrial and Commerical Bank of China before Asian markets opened Monday in its fourth large sale of the Chinese bank’s shares since 2009. (Wall Street Journal) Goldman raised about $2.5bn selling the stake to Temasek, sources said. (Bloomberg)

Three powerful Angolan officials have held concealed interests in an oil venture with Cobalt International Energy, the Goldman Sachs-backed explorer whose operations in one of the world’s most promising energy frontiers are under investigation by US authorities. (Financial Times)

Sarkozy breaks his pact of silence with Merkel on disagreements over ECB policy, saying: “We, the French, will open the debate on the role of the central bank in the support of growth”. (Financial Times)

Bo Xilai’s son has left his apartment near Harvard under escort of private security guards, according to a source. (Wall Street Journal)

Bank of Korea has cut its 2012 growth forecast to 3.5% from 3.7%. (Bloomberg)

Wall Street banks are resisting the Fed’s plan to limit their exposure to individual companies and governments, warning it will cut a combined $1.2tn from credit commitments at Goldman Sachs, JPMorgan Chase, Morgan Stanley, Bank of America and Citigroup. (Financial Times)

Codelco  has had to buy from other copper miners to meet delivery obligations. Poor production out of Chile could counterbalance concerns about falling demand from China. (Financial Times) The industry is pondering whether the market could tip into surplus. (Wall Street Journal)

China’s renminbi move was welcomed by analysts, who say the widening of the volatility allowed in daily trading is a concrete step towards a free floating currency. (Financial Times)

European banks brace for downgrades, after Moody’s Investors Service said Friday that it is delaying until early May its highly anticipated decision on whether to downgrade the credit ratings of 114 banks in 16 European countries. (Wall Street Journal)

Barclays’ tax planning business will be the subject of scrutiny in a US court case over whether deals the bank structured cost the government more t han $1bn in lost revenue. (Financial Times)(Trial documents)

Barclays will pay Bob Diamond more than £600,000 to offset his US tax liabilities. The payment is part of his contract but is likely to escalate shareholder disquiet over his remuneration. (Financial Times)

Jonnie Goodwin is leaving US investment bank Jefferies, which bought his boutique investment bank Longacre in 2007. Goodwin is setting up Lepe Partners, an “independent merchant bank” focused on media and internet transactions. (Financial Times)

Carlyle’s IPO will value the company at about $7bn, according to sources. The private-equity firm is seeking to raise as much as $762.5m in the offering, with about 30.5m shares being offered at $23 to $25 each. A prospectus is expected on Monday. (Bloomberg)

Markets: Growth-focused assets were mixed as traders remained nervous about Europe’s fiscal condition. The FTSE All World equity index was down 0.2 per cent to sit less than a percentage point above its 2012 low. Copper, the industrial and development bellwether, was off 0.8 per cent at $3.59 a pound, to a three-month trough. Such global sentiment barometers have been under pressure over the past few weeks with investors becoming concerned that surging Spanish bond yields may reignite eurozone sovereign debt contagion fears. Adding to those worries were signs that the US economy may not be as strong as many had hoped – following some disappointing jobs data – and after first-quarter growth in China was shown to be at its weakest in almost three years.