Posts from Tuesday May 1 2012

The Closer


The Dow Jones Industrial Average closed at its highest since December 28, 2007. A strong ISM reading helped push the index to close 13279.32, up 0.5 per cent (Wall Street Journal). The US manufacturing PMI rose to 54.8 in April, up from 53.4 in March (Bloomberg). Read more

Dodd-Franking, to date

April 2012 was a pretty big month in Dodd-Frank Act rulemaking; the SEC and CFTC agreed how to define “swap dealer”, “major swap participant”, et al. under Title VII of the Act, dealing with over-the-counter derivatives.

Still a way to go though. Read more

Dear Bank of Japan: So you tried the easing thing a gazillion times…

… might it be time for something (relatively) new? One question that keeps on popping up is, what is stopping Japan from adopting a currency peg a lá the Swiss National Bank? If repeated easing seems to have no real effect why not get explicit?

Essentially, there is little chance of an explicit floor being put in place due to: Read more

Dark inventory, a volatility shock absorber

From oil to copper, something strange is going on with commodity inventories.

Official stocks are rising across numerous commodities, but analysts and traders swear fundamentals remain tight, while prices stay supported: Read more

Those increasing iTraxx tranches, behind the scenes

The Chief Investment Office of JP Morgan was the inspiration for FT Alphaville’s recent Whale Watching Tour.

It also prompted us to take a closer look at the recent, and rather remarkable, growth in trading in standardised credit tranches since the beginning of 2012. Such trades are effectively highly leveraged bets/hedges on the creditworthiness of corporations. Read more

Chinese palaces, in central Ireland

For anyone who’s ever looked at the Chinese property boom and had the phrase ‘Ireland of Asia’ cross your mind… this one’s for you.

Here’s a computer-generated pic of a “Euro Chinese Trading Hub” which could be coming soon to the Irish town of Athlone (pop. 20,138): Read more

Masters of the Social Media, Goldman Sachs edition

Having finally taken notice of the runaway success of @GSElevator, the great squid’s comms department wants in on some of that, for it is hiring a “Social Media Community Manager“. (H/T finextra)

Among the responsibilities for the lucky associate or vice president: “Create and maintain Content Calendars, including writing Facebook Status Updates, Twitter posts, and LinkedIn group management.” Read more

Reading for News Corp shareholders…

Presenting ‘News International and Phone-hacking’ — the report in which a committee of British MPs voted 6-4 to conclude that ‘Rupert Murdoch is not a fit person to exercise the stewardship of a major international company’.

 Read more

Markets Live transcript 1 May 2012

Live markets commentary from 

The (early) Lunch Wrap

Good morning New York…


UK PMI: Foreigners buy less British

The latest UK manufacturing purchasing manager’s index since the economy went back into recession was released this morning. Given the PMI’s leading indicator status, April’s reading is bound to be closely watched and analysed.

The Markit/CIPS PMI report, as always, comes written in economist-speak, which we will attempt to translate for you. Read more

May Day bank margins

Charts via Nomura’s European bank analyst, Jon Peace:

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Further reading

Elsewhere on Tuesday,

– A long read on Paul RyanRead more

The 6am Cut London

China’s official PMI figures for April came in at 53.3, compared to 53.1 in March and a median forecast of 53.6 from economists surveyed by Bloomberg.  It was the highest number in a year, and the fifth straight month of expansion, says the FT.

Heathrow owner BAA may charge airlines higher landing fees to help sort out Britain’s border chaos, reports the FT. The company is studying the plan, which is backed by David Cameron. Read more

Overnight markets: Down

Tokyo stocks fell in early Tuesday trading, largely in response to the sharp fall in the dollar against the yen, with several exporters such as Tokyo Electron dropping sharply, says Dow Jones. But the sell-off was somewhat limited by an absence of players due to mid-Golden Week sentiment as well as the closure of many Asian bourses.

  Read more