Posts from Friday Aug 3 2012

The Weekender

This week on FT Alphaville,

– We covered Mario Draghi’s eagerly awaited ECB press conference. It didn’t go so well, amid market confusion — or did it? It was the debate of the week. Read more

Rally Monkey: “Stop trying to explain my behaviour. I’m a monkey.”

A snapshot of global equity markets from a few minutes ago:

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Publicis and Interpublic – a swan song for Levy? (Updated)

UPDATE:  Publicis on Sunday formally denied that it has held any discussions with Interpublic, adding that it had not commissioned any bank to pursue such talks.

Apologies, but our usually knowledgeable sources turned out to be lacking on this occasion. Read more

Alexion targeted for Roche poach?

Remember Friday afternoon RAW?  Well, this is most definitely Friday afternoon RAW. Please read the disclaimer carefully.

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July’s nonfarm payrolls: 163,000

A few points as we come across them:

— In the household survey, the total number of employed people actually fell by 195,000. As the release notes: Read more

The Great Draghi Re-think

Maybe it’s because it’s August. Or maybe people got round to reading J Cotterill on the matter. Either way, stocks are up, sharply, and peripheral sovereign yields are down, pretty much across Europe.

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Sell Swiss watches

Terrific stuff from Bronte Capital’s John Hempton on Friday…

The slowdown in Hong Kong (super) luxury goods is a faster decline than other Chinese data. Why so fast? Read more

The corporate deposit flight from Spain

BBVA and Santander reported deposit declines of about 1 per cent in the second quarter. While that represents a notable trend, it’s not yet one that should be called alarming.

Unless, points out Citi on Friday, you turn to the corporate and investment banking component in the deposit trend. Read more

The (early) Lunch Wrap

Good morning New York,


Wall Street, regulators, bailouts, and badminton

Should we really be so shocked when people respond to incentives?

It’s a rhetorical question former TARP Special Inspector General Neil Barofsky posed on Thursday via Twitter. What triggered it was those Olympic badminton players who deliberately tried to lose their matchRead more

Further reading

Elsewhere on Friday,

– More Knight falloutRead more

The 6am Cut London

Markets looked askance at the ECB’s promise that it may buy bonds and ‘address’ seniority fears if the eurozone rescue funds are also activated. Mario Draghi told the ECB’s monthly press conference that the central bank could buy up shorter-term debt subject to “strict and effective conditionality” by the EFSF, which requires member states to request market aid. The euro tumbled against the dollar – while Mr Draghi advised markets it was “pointless” to short it – and 10-year Spanish and Italian bond yields rose sharply. An equity market sell-off continued into Asia on Friday, with the Nikkei falling 1.1 per cent (Wall Street Journal).

The ECB president’s ‘guidance’ of ‘outright open market operations’ in planning stages takes it into new territory, possibly including quantitative easing. Despite linking bond-buying to action by fiscal bailout funds, Mr Draghi did not rule out other ‘non-standard measures’ by the central bank (Reuters). He also took the unusual step of naming the Bundesbank’s Jens Weidmann as a bond-buying opponent, but argued that intervention in short-term rates would be ‘classical monetary policy’ (Financial Times). Read more