Posts from Wednesday Aug 29 2012

Down down prices are down

Yep it’s the incredible shrinking iron ore price…

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The Closer

ROUND-UP

Flat again for US stocks: the S&P 500 gained 0.08 per cent to close at 1,410.49 (Reuters). US crude fell 1.4 per cent to $95 a barrel on bets that hurricane Isaac would leave relatively little damage on Gulf of Mexico oil production. Read more

Taking Stanchart down under

As fantasy banking M&A goes — this isn’t such an outlandish idea, we reckon.

But see what you think: Read more

Balkanisierung

Here’s a call from Sober Look on Tuesday — Germany’s growth might be on the cusp of going negative:

So much for the hopes and dreams of German decoupling from the Eurozone’s economic troubles. How things have changed in just six months… Germany’s growth trajectory is now converging with the rest of the euro area’s weakened economic conditions. Read more

M&T and Hudson City’s clean capital

Peter Eavis over at Dealbook notes an underrated aspect of the big M&T/Hudson City regional banking deal — regulatory capital:

To do well in annual Federal Reserve stress tests, M&T Bank may want to increase its Tier 1 common ratio substantially. Read more

Charting sovereign bond holdings across the eurozone

So which European country might be seeing foreign investors fleeing its sovereign bond market, leaving domestic banks to take up the slack?

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Waiting, and positioning, for the eurozone crisis reboot

Getting a bit impatient waiting for Friday/anything to happen? Well, why not print out (and update) your Eurozone Crisis Rebooted calendar, courtesy of Citi:

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The unintended consequences of QE: not what you think

By now, everyone is familiar with the mantra that QE is [arghh!] money-printing and that a major unintended consequence could be a chronic and uncontrollable inflation. (One could call this the goldbug, Austrian, Republican case).

Less well known, perhaps, is the theory that QE could be just as unexpectedly deflationary — because long-term micro yields come to threaten a number of financial sectors outright, as well as general expectations of risk-free returns which lead to capital destructive feedback loops. Read more

He may not be going to Jackson Hole but…

… he still has a few things to say.

From the ECB’s perspective, a strong economic union is an essential complement to the single monetary policy. Building this will require a structured process with correct sequencing. Yet citizens can be certain that three elements will remain constant. The ECB will do what is necessary to ensure price stability. It will remain independent. And it will always act within the limits of its mandate. Read more

Markets Live transcript 29 Aug 2012

Live markets commentary from FT.com 

The (early) Lunch Wrap

Good morning, New York…

FT ALPHAVILLE Read more

Un-Glencoring Xstrata

How do you price in the unwinding of a fantasy takeover bid?

That’s the challenge in the London mining sector as the promise of Glencore merging with its long-term associate Xstrata fades. Read more

Further reading

Elsewhere on Wednesday,

- The Republicans officially “believe in America”Read more

The 6am Cut London

Most Asian stocks rose ahead of US 2Q GDP revisions due on Wednesday and Fed chairman Ben Bernanke’s speech on monetary policy later this week. (Bloomberg)(Financial Times)

KKR  has approached struggling Japanese chip maker Renesas Electronics and its shareholders with an offer of investment, people with knowledge of the proposal said Wednesday. (Wall Street Journal) Renesas shares jumped 31% on an earlier report in the Nikkei newspaper that KKR will spend 100bn yen ($1.3bn) buying Renesas shares. (BloombergRead more

Don’t look down (with Twiggy Forrest update)

Presenting the latest price action in… iron ore.

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