Posts from Friday Jul 27 2012

Winning over Buba

This’ll surely liven up next Thursday’s ECB meeting…

Via Bloomberg late on Friday (which was citing two central bank officials): Read more

Bail-ins, an exit consent challenge

On this quiet, Olympics Friday — some bank bail-in reading, courtesy of a judgement by the High Court of England and Wales.

It’s come down surprisingly hard on a small, but very important, weapon in the armoury of bailing-in bank bondholders: exit consents. Read more

Can Draghi bluff as well as Trichet?

“Such a speculation [on whether Greece will default] would be a sure-fire way of losing money given the decisions taken last Thursday.”

– JeanClaude Trichet, in an interview Le Point on 22 July 2011 (published 27 July). Read more

The structure of EU debt and bonus pop quiz!

Get ready to pretend to look surprised… Government debt in Europe increased last year.

Obviously you are shocked! Ahem. Read more

Why the Olympics might let Draghi stay at the beach

Summer time! When:

Read more

The world is better off: from fridges to mobiles in EM countries

Consumer and business confidence in Europe and the US is down. Even McDonald’s, the fastfood eatery that ensures students can afford meat for dinner, is worried about the impact of the gloom on its profits. It’s ugly out there.

However, let’s take a moment to reflect on the longer term, and more global, picture. Also we need to meet our quota of one positive news story per week. Courtesy of UBS, here’s how consumption of certain white goods generally evolves as the GDP per capital for a country increases (using data from Euromonitor as well as their own): Read more

Markets Live transcript 27 Jul 2012

Live markets commentary from 

What’s the ECB going to do next?

Recent comments from Mario Draghi and Ewald Nowotny have got the markets all aflutter and struggling to understand how policymakers are going to keep the eurozone together in the next weeks and months.

JPM’s David Mackie has complied a list of possible actions, in descending order of likelihood as he sees it: Read more

The (early) Lunch Wrap

Good morning, New York…


Barclays records earnings beat (and apology)

The bank beat expectations with an adjusted profit before tax of £4.2bn, cut its eurozone exposures, set aside £450m to compensate small and medium-sized businesses that were mis-sold interest rate hedging products and said sorry again… which was nice.

From the statementRead more

Premia, there and everywhere

Who went back and read Mario Draghi’s full, market-moving remarks in London on Thursday — beyond the “whatever it takes” and “yields” bits?

Here they areRead more

Further reading

Elsewhere on Friday,

— Optimism about the eurozone: someone’s gotta do it. Read more

The 6am Cut London

Asian stocks rose for a second day and the MCSI Asia Pacific index headed for its biggest gain in four weeks after ECB president Mario Draghi said the central bank would do whatever is needed to preserve the euro (Bloomberg).

Facebook shares reached a new low after its first quarterly earnings as a public company showed slowing advertising growth and narrowing margins. The shares fell more than 10% in after-house trading to $23.84, compared with the issue price of $38 in the company’s IPO (Financial Times). Operating margins were 43% compared to 53% a year earlier, and revenue growth of 32% was the slowest the company has recorded (Bloomberg). Read more