Posts from Monday Jul 30 2012

The Closer


US stocks ended their recent rally despite hopes that policymakers on both sides of the Atlantic would undertake further measures to buoy the US and Eurozone economies. The S&P 500 closed down 0.05 per cent (Financial Times). Meanwhile, the US bond market quelled fears that the country could be heading into a period of deflation (Bloomberg). Read more

Wayne Rooney in a SEC filing

Manchester United’s filing for its $383m IPO, finally. Click to enlarge. Enjoy!

Related link:
Man Utd in deal with Chevrolet on jerseys – FT

Quantifying “convertibility risk”

We thought Mario Draghi’s reference to “convertibility risk” in eurozone bonds — which might “come within our remit” — was pretty big news last week.

Though we wonder if it’s still being underrated. Read more

A painful Greek symbol

Greek cabinet ministers are meeting later today to finalise how they’re going to come up with €11.5bn in savings over the next two years as demanded by the Troika. Unsurprisingly, the most contentious and sensitive part is the €1.5bn in pension and wage cuts that are needed.

From the FTRead more

When are insurers systemically important?

Banks are interconnected, and carry systemic risk to the economy. One doesn’t need the experience of a crisis to know this, it’s just intuitive.

On a similarly intuitive basis, are insurers systemically important? Read more

A response to market monetarists on IOER

A big thanks to economist David Beckworth, one of FT Alphaville’s favourite bloggers, for his characteristically smart and polite post in response to our thoughts on why lowering or eliminating IOER is a problematic idea.

(In our post we had asked what the market monetarists thought of the issues we raised.) Read more

Markets Live takes an Olympic hiatus

We apologise but Paul and Bryce partied so hard over the opening weekend of the Olympics that they need two weeks to recover…

A fellow reveller mirrors ML's slumber

 Read more

The (early) Lunch Wrap

Good morning, New York…


HSBC join the results, redress and remorse camp

… with their 2012 interims.

The TL;DR version goes like this: Read more

The SNB eats euro cake

How many reserve assets does it take to screw a Swiss franc into a euro-sized peg?

Answer: this much (so far): Read more

Iron ore going down, down, down

We related last week a forecast from Nomura that iron ore was going to keep falling, and probably more steeply, as it tends to follow Shanghai rebar futures (the most-traded steel futures) and those have plummeted of late. It looks like spot iron ore prices are indeed catching up (or down) with rebar, and that’s taken iron ore below the critical $120/tonne mark.

Why is $120 important? Because of the cost curve. This comes up a lot in the world of iron ore, so it might be worth revisiting what that means. Read more

Further reading

Elsewhere on Monday,

– The euro is like a bumblebee.
 Read more

The 6am Cut London

Asian shares extended their gains on Monday, supported by expectations of stimulus from the Federal Reserve and the ECB, but the euro fell. MSCI’s Asia-Pacific ex-Japan index gained as much as 1.1% to a three-week high, after posting its biggest daily rise in a month on Friday with a 2.2% climb.  (Reuters).

Japan’s industrial output fell unexpectedly in June. Output fell 0.1% compared to the previous month while economists surveyed by Dow Jones and the Nikkei had expected a 1.6% increase. The third consecutive month of decline, the country’s Ministry of Economy, Trade and Industry revised its outlook of industrial production, saying it was “flat” rather than in a recovering trend. (Wall Street JournalSouth Korea’s manufacturers’ confidence index for August is 70, compared to 81 for July (BloombergRead more