Posts from Wednesday Oct 3 2012

The Closer

FT markets round-up: “Global equity markets were mixed, while most commodities fell, as weak data from Europe, China and Australia was partially offset by better-than-expected US services and jobs numbers. The FTSE All-World equity index closed fractionally lower, after the FTSE Eurofirst 300 dipped 0.1 per cent and Asian stocks shed 0.3 per cent. On Wall Street, the S&P 500 added 0.4 per cent helped in part by the better-than-forecast reading on private jobs and pickup in the US service industries. Read more

The case against idea monopolisation

Patents and copyrights, a.k.a the process of monopolising ideas.

A gripping new paper from Michele Boldrin and David Levine at the St. Louis Fed argues there are strong economic grounds to abolish patents, because “there is no empirical evidence that they serve to increase innovation and productivity, unless the latter is identified with the number of patents awarded– which, as evidence shows, has no correlation with measured productivity.” Read more

France now has two words for entrepreneur

George W. Bush famously (and reportedly) opined that:

“The problem with the French is that they don’t have a word for entrepreneur” Read more

Gresham’s law takes Iran

What’s happening in the Iranian currency markets at the moment is getting pretty fascinating.

Via Reuters on Wednesday:

IRANIAN RIOT POLICE CLASH WITH DEMONSTRATORS IN TEHRAN OVER RIAL COLLAPSE – WITNESSES

 Read more

US Markets Live transcript 3 Oct 2012

Live markets commentary from FT.com 

Markets Live redux: starting at 10am New York, 3pm London

Our London colleagues had a tech blowout earlier today, but Paul and Bryce will be on with us for part of the session to cover some of what we missed.

Otherwise, we’ll be talking US macro ahead of this Friday’s job numbers, the T-Mobile/MetroPCS tie-up talk, the Google-Samsung-Apple patent wars, the latest out of Europe, and yes, that other thing that happened this morningRead more

Guest post: Give banks a break on Libor

From Richard Farley, Leveraged Finance partner at lawyers Paul Hastings

Last Friday, Britain’s top financial regulator, Martin Wheatley of the Financial Services Authority, issued his final report with recommendations for the comprehensive reform of the scandal-ridden LIBOR setting process. Read more

Chinese property is baaaaack!

Remember Chinese property? How there was a boom in apartment building that amounted to some 10 per cent of GDP, and now there are gazillions of investment apartments sitting empty, and local governments got really hooked on the revenues from land sales, and it all fueled the development of weird and dodgy securitisations which offered a tempting alternative to letting one’s savings lose value in a deposit account? Read more

Currency wars as global stimulus

Currency wars are back in fashion. Even if you ignore the idea that those who fire the opening shots do so as an after-thought, there is still a feeling this may tip into widespread conflict.

But, the idea of currency wars as a negative may be fundamentally misunderstood (we blame the ‘war’ branding thing). Read more

Rubik’s Revolutions

We introduced our Rubiks QE analogy on Tuesday. This post is a continuation, in which we apply the analogy to the crisis so far.

Before we go on we should point out that the Rubik’s is a simplification, as are the concepts of “tomorrow money” and “today money”. There are and will always be areas that call for further explanation, but which we haven’t covered in this post. If they’ve been left out, it’s mostly due to post-length constraints. It’s not because we are wilfully ignoring them. Read more

MoUs for all! More on that draft EU agenda…

Herman van Rompuy has quite a proposal to kick off discussions to get some kind of eurozone economic union concept bedded down by the end of the year. The FT’s Alex Barker and Peter Spiegel had the scoop, and FT AV can reveal a bit more of the detail of what is essentially another step towards fiscal union.

Here are some of the points that van Rompuy suggests, in a draft proposal, might be considered at the next EU summit, later this month (our emphasis): Read more

Markets Live transcript 3 Oct 2012

Live markets commentary from FT.com 

The (early) Lunch Wrap

US steps up probes on insider trading: US authorities have increased the number of new investigations into insider trading by almost half in the past year, building on their recent crackdown on corruption among professional traders, the FT reports. James Barnacle, a supervisor of the Federal Bureau of Investigation’s economic crimes unit in Washington, said the number of new FBI investigations into insider trading was up 43 per cent nationwide for the fiscal year that ended September 30.  Read more

Passably Miserable Indices

It’s eurozone composite PMI time.

Headline: Predictably poor. Read more

Further reading

Elsewhere on Wednesday,

- History, gravity and international finance. Read more

The 6am Cut London

Asian stock markets rose despite news of weaker Chinese services growth, stoking speculation the nation will step up measures to stimulate the economy and overshadowing concern about Spain’s reluctance to seek a bailout. (Bloomberg)

China’s non-manufacturing industries expanded at the weakest pace since at least March 2011. The services PMI fell to 53.7 from 56.3 in August. (BloombergRead more