Posts from Tuesday Oct 23 2012

The Closer


Warnings of a weak economy by DuPont, Xerox, UPS and 3M and others hammered equity markets. Xerox highlighted “widespread economic uncertainty, especially in the United States” while UPS said its freight business saw “an environment of slowing global trade” (Financial Times). Despite relatively strong results at UPS, DuPont stock fell 9 per cent on Tuesday after the chemicals company swung into loss. The S&P 500 closed down 1.44 per cent at 1,413.11, with the Dow shedding 243 points, or 1.82 per cent, to finish at 13,102.53 (Reuters). Read more

The geopolitics of computer trading

You can’t accuse Her Majesty’s Government’s Office of Science computer trading review of failing to think ahead…

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The Romney InTrade blip

Election watchers and political junkies who obsessively study every poll or other releases of electoral data must have had a moment of consternation this morning as they checked Intrade, the online prediction market.

Despite the widespread perception that President Barack Obama got the better of Mitt Romney in last night’s televised debate, the Intrade market pegging Romney’s chances of winning the election spiked from roughly 41 per cent to nearly 49 per cent in just a few minutes early Tuesday morning. The prediction market then swung back in Obama’s direction within minutes, and is now roughly where it started the day. Read more

For this UK banks analyst, hopes are now dashed

The research department at Investec offer a notably clear illustration of any given analyst’s recommendation record on any particular stock.

Let’s look at Ian Gordon’s record on Lloyds and RBS. Click to enlarge each image. Read more

Eurozone wage adjustment, charted

Or peripheral pain in terms of growth/shrinkage in compensation per employee. It offers a striking illustration of why both Greeks and Germans have reason to feel peeved… Read more

A brief respite for the euro?

Commerzbank is arguing that we should all forget about the eurozone crisis for a bit where euro-dollar is concerned (with our emphasis):

At the same time a further improvement of the Spanish and Italian yield premiums no longer supports EUR-USD (see chart 1). Why? From the market’s point of view the crisis has eased sufficiently for German CDS to ease below 30bp for the first time since April 2010. That means the crisis is no longer sufficiently virulent to affect EUR-USD to the same extent as it did over the past 12 months.

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Markets Live: Tuesday, 23rd October, 2012

Live markets commentary from 

The (early) Lunch Wrap

Obama takes the debate offensive || GE on ‘fiscal cliff’ fears || Chinese factories losing pricing power || Yahoo focus on mobile || Microsoft rebrand || Texas Instruments sales down || Market update Read more

UK consumers fail to read Funding for Lending memo

Figures from the BBA on Tuesday generally confirmed what we already knew: July’s £100bn Funding for Lending scheme, which was supposed to reduce the real cost of borrowing in return for the banks getting even cheaper access to cash, is simply failing to get through.

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Mulberry stock price – so last year, darling

To be fair to Mulberry, the British ‘luxury’ label, it has done an admirable job of building an international business based on two unremarkable yet expensive handbags.

Namely, the ‘Bayswater’, a snip at £1,100 (pictured on the left), and the ‘Alexa’, a modest £925 (on the right). Read more

Counting das gold at Fort Knox

Germany wants to audit its gold held abroad. Paranoia or sensible book keeping? To be fair, there’s quite a bit of it (feel free to read that any way you choose). From the Spiegel:

Germany has the second largest gold reserves in the world, nearly 3400 tons. Supposedly, anyway. Because stocks have never been checked for authenticity and weight. Now, the Federal Court has asked the Bundesbank to examine the gold reserves abroad regularly.

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Further reading

Elsewhere on Tuesday,

– The foreign policy debate was replete with misguided economics.

– Be safe… But not TOO safe.

– And the assets class winner is… Read more

The 6am Cut London

Asian stocks swinging on US corporate earnings || Hacking claims against Mirror group || Caterpillar beats expectations but guides lower || Shareholders pressure BAE chairman to resign || Presidential debate goes to Obama || Megafon’s London listing plans delayed || Much coverage of AIG Read more