FT markets round-up: “Stock markets traded on firmer ground as better US economic data helped investors gain confidence about global growth prospects. The FTSE All-World equity index rose 0.8 per cent as the FTSE Eurofirst 300 closed 0.5 per cent higher, after the Asia-Pacific region advanced 1 per cent. Wall Street’s S&P 500 gained 0.4 per cent to 1,460, leaving the index less than 6 points from a four-year closing peak, helped by news that US housing starts during September rose at their fastest pace in more than four years. Closely watched sentiment gauges are continuing to display a more optimistic mood, with copper, the industrial bellwether, up 1 per cent to $3.74 a pound.” Read more
S&P has downgraded (to B from BB) Cyprus, the little island which is facing a great big bank recapitalisation bill from the fallout in Greece. It could well be the biggest ever such bill in history, relative to GDP.* Read more
Moore Capital’s star manager and heir-apparent to founder Louis Bacon is leaving the industry:
Greg Coffey, the hedge fund trading superstar at Moore Capital Management, once assumed to be the successor to the firm’s founder, Louis Bacon, has resigned.
Read more
Since the end of last year, the SEC has been using a proprietary risk analytics system called Aberrational Performance Inquiry. Basically, the plan has been to spot fund managers and hedgies whose outperformance points to potential fraud – the sort of fraud they missed in the case of Bernie Madoff.
Performance that is flagged as inconsistent with a fund’s investment strategy or other benchmarks forms a basis for further investigation and scrutiny by the SEC. Read more
Ever hear the word “innovation” and not be able to stop yourself from wincing? Then you probably work in financial markets.
With the above thought in mind, let’s play a special FT Alphaville edition of Mad Libs.
For those unfamiliar with the game, fill in the below blanks as per the instructions that accompany them. Then read the paragraph below, inserting the words you wrote into the appropriate spaces. Read more
Let’s go back to May 2005, to a lecture delivered by Bank of England governor Mervyn King at the Cass Business School… Read more
Time for another edition of our live US markets chat, at the usual place. We’ll be talking about all that data in favour of a housing-led recovery, bank earnings, the sudden disappearance of the fiscal cliff from the US election, and anything else that takes our fancy.
See you there! Read more
China’s Q3 GDP data is out on Thursday, and there’s naturally a lot of speculation about whether it will show yet another quarter of declining growth (almost certainly) and whether it will even fall below the official 7.5 per cent target, (quite possibly). However the numbers revealed won’t be suitable for an apples-for-apples comparison with most other countries. In fact, they’ll barely be suitable for comparison with previous Chinese GDP numbers. Read more
… just as it becomes the new China, which is no longer the old China. Ok? Probably not, but we may as well go through the argument anyway. The idea is that Japan, sick of yen strength which it struggles to combat in a risk-driven world, sticks a Swiss-style floor under its currency.
It’s not the newest idea and there are suggestions that a de facto floor is already in place anyway but the argument, from Société Générale, is worth running through as there is certainly more chance of an explicit floor being announced now than there was when we last visited the idea. Read more
Live markets commentary from FT.com
Good morning, New York…
NEWS
Obama tackled Romney more forcefully in the second US presidential candidates’ debate, striving to make up for lost ground in the first round. “Romney stumbled badly at one point in an exchange over the deadly attack on the US consulate in Libya,” and was most articulate on the economy. “Obama was much sharper and more energetic than in their first debate two weeks ago.” (Financial Times)(Reuters)(FT live blog)
Vikram Pandit stands to forfeit almost $33m in cash and stock from a retention package according to the terms of a May 2011 regulatory filing by Citigroup. Whether the board gives him a payout to ease his exit may reveal more about the circumstances around his departure. Read more
We just had to highlight this excellent cut-out-and-keep guide, from today’s print FT, to the tussle over banking union, fiscal union, and debt mutualisation:
Read more
Capital Economics ponders whether falling commodities prices will harm the emerging economies that rely most on selling them, and comes up with an answer: not much. At least, for most of them… Read more
That’s Spain’s 10yr spread over German Bunds dropping below 400 points for the first time since the start of April:
Spanish 10yr fell to 5.547 with Bunds touching 1.5864.
Probably something to do with Moody’s qualified endorsement: Read more
Elsewhere on Wednesday,
- Segregating client money, it’s a decision. So, cyanide or arsenic?
- Prefer you honesty or deception?
- Presidents and… recency bias. Read more
Asian shares rise strongly || Obama takes different tack in second debate || BBA considers a tough “bankers’ register” || Spain bailout request seen likely in November || Unpicking Pandit’s departure || IBM sales fell but beats 3Q estimates || Intel profits fall, shares fall too || Martin Wolf on the IMF || Foxconn hired underage workers Read more
