Posts from Friday Apr 13 2012

The Weekender

This week on FT Alphaville,

– David Murphy of Deus Ex Macchiato penned special guest posts for us all week on the seriously hot topic of credit valuation adjustments. So go read ’em. Thanks David! Read more

Stardate April 13, CIO sector, JP Morgan reporting VaR

Big hat tip to @tracyalloway for flagging up the following factoid from JP Morgan’s earnings today.

Can you believe that VaR (value-at-risk) at JPMorgan’s investment bank was less than VaR at its much talked-about chief investment office (CIO) in the first quarter: Read more

US Markets Live transcript 13 Apr 2012

Live markets commentary from 

Reminder: US Markets Live at 10am New York time, 3pm London

We’re back to our normal hours this week, and this morning we’ll be discussing bank earnings, Google, China GDP, and CPI. Or we’ll scrap all that and just talk about whatever crosses the tape. See you at the usual place.

JPM earnings

Not a bad start to bank earnings season. We’ll have a proper breakdown during US Markets Live later on Friday, but for now here’s the announcement.

Revenues and net income each came in higher than analysts expected, though net income was slightly lower than in the same quarter last year. Read more

Pass the margin on the left hand side

If you read some of the regulations written recently, you may be forgiven for thinking that central clearing is the solution to all the risks in the over-the-counter (OTC) derivatives market. Some rules mandate clearing for certain market participants and trades, while others impose higher capital requirements for staying outside of the system. There is, of course, an implicit assumption in all of this that central clearing is an unequivocally good thing.

If only it were that easy. In fact, there are lots of issues with OTC derivatives clearing. Today, we’ll just look at one aspect: that of margin. Read more

Markets Live transcript 13 Apr 2012

Live markets commentary from 

The (early) Lunch Wrap

Good morning, New York…


The Glenstrata glitch

Can it really be true that advisers to Glencore and Xstrata  did not envisage a referral to the competition authorities in Brussels when planning their $90bn $80bn merger?

Seems so… Read more

China in GDP shock

The China GDP figures change little in terms of the choose-your-own-adventure thing happening with China. Yes, the 8.1 per cent growth for Q1 was lower than consensus forecasts of 8.3 or 8.4 per cent. But no, it’s not causing the bears to rejoice.

Witness this from Nomura strategist Zhiwei Zhang, who’d forecast a well-below-consensus 7.8 per cent: Read more

Further reading

Elsewhere on Friday,

– Regional tensions are rising in Spain. Read more

The 6am Cut London

Asian equities rose on Friday morning after strong Thursday closes in Europe and the US. The relief at North Korea’s rocket test failure helped South Korea’s Kospi rise 1.2%. (Financial Times)  In an unusual admission, North Korea officially confirmed the failure. (Reuters)

However gains were pared and commodities fell as China’s Q1 GDP growth came in at 8.1%, the slowest rate since 2009. (Bloomberg) Expectations among forecasters averaged on an 8.3% figure. (Wall Street JournalRead more

Overnight markets: Up

Asian equities advanced following on from strong sessions for US and European markets overnight. South Korea’s Kospi index rose 1.2 per cent by mid-morning in Seoul, the most in six weeks, while the Korean won was the region’s best performing currency, rising 0.7 per cent against the US dollar, says the FT.

Asian markets
Nikkei 225 up +128.32 (+1.35%) at 9,653
Topix up +5.81 (+0.72%) at 815.69
Hang Seng up +326.90 (+1.61%) at 20,654 Read more