Posts from Friday Oct 26 2012


This week on FT Alphaville,

– A reminder that Lisa is chairing a panel on socially useful banking featuring Andy Haldane on Monday. Read more

A pari passu upset?

Argentina’s selective recitation of context-specific quotations from arguably biased commentators and institutions notwithstanding, the preferred construction of pari passu clauses in the sovereign debt context is far from “general, uniform and unvarying”…

That’s the U.S. Court of Appeals for the Second Circuit on Friday – in a sovereign debt ruling which might just set an interesting precedent or two. Read more

We may be about to discover if that stone is actually worth something

Remember this?

Now there’s this:

“We have been in discussions with the Federal Reserve Bank of New York about the Bundesbank’s holdings of gold,” the Bundesbank said yesterday in a letter to the German parliament’s budget committee. “The discussions have been fruitful and the Federal Reserve has expressed a commitment to work with the Bundesbank to explore ways to address the audit observations, consistent with its own security and control processes and logistical constraints.”

There will be a few people hoping this practice doesn’t spread: Read more

Haldane on why King Kong & Godzilla, like big banks, are inefficient structures

First a reminder about this coming Monday, October 29th.

Andy Haldane, the Bank of England’s executive director for financial stability, will be giving a talk at Friends House, right across the road from Euston station. FT Alphaville is very happy to be chairing. Kickoff is 6pm.

While the event is free, you do have to reserve a seat. Click here to do so. Read more

‘Why should Germans support poorer Spanish regions if Catalans object?’

Most commentary on Catalonian nationalism dwells on whether this is something that’s going to have implications outside of Spain. How worried should we really be if the Catalans get a bit more fiscal autonomy or even independence? But the Catalan debate actually raises a much bigger question that goes right down to the essence of the eurozone as it stands, namely if Catalonia is unprepared to subsidize Spain’s poorer regions, why should northern Europe do so? Read more

An Olympic bounce into a deleveraging headwind

From Citi’s Michael Saunders and Ann O’Kelly: Read more

Markets Live: Friday, 26th October, 2012

Live markets commentary from 

The (early) Lunch Wrap

Yahoo acquires social app || Amazon records first quarterly loss since 2003 || Apple warns of effect of product launches on profitability || Random House, Penguin tie-up || S&P negative on French banks || US Libor probe widens || Samsung’s record net profit || Anglo American CEO to depart || Credit Suisse wants to develop an exchange Read more

Bye Cynthia!

Anglo American has parted ways with Cynthia Carroll and the mining group does not know who’s going to replace her. The share price popped 3.2 per cent on the news – a rare Footsie gainer on Friday morning at pixel time.

From the FT:

Cynthia Carroll, the chief executive of Anglo American, has resigned from her post at the strike-hit mining company after almost six years in the job.

The group said Ms Carroll, the first non-South African and first female chief executive of the mining conglomerate when she was appointed in 2007, would continue as chief executive until a successor had been appointed and “an appropriate transition has taken place”.

 Read more

A China property development recovery… or not?

Capital Economics has is pouring cold water on the notion of a recovery in the Chinese property construction sector, despite house prices appearing to bottom out around the middle of this year. Already? Just a few weeks ago we were writing about a thorough argument from Stephen Green of Standard Chartered early this month presented a thorough argument that previously sky-high inventories of unsold apartments were shrinking. Green and colleagues suggested that with falling new starts and stronger sales, it was even possible that inventories could become too low in the second half of 2013, at least in the biggest cities.

Now, we’re not quite so sure…  Read more

Investment banking made simple enough to bore people

Credit Suisse has totally bored Matt Levine at Dealbreaker with their latest earnings announcement.

There are only so many ways to outperform in banking. But these days balance sheets are constrained, regulations are biting, and financial ‘innovation’ raises eyebrows. It’s just dull, in some respects.

Here’s Matt, bemoaning the utterings of Credit Suisse CEO Brady Dougan:

I had so much hope!

 Read more

Further reading

Elsewhere on Friday,

– AIG, charted.

Job cuts and CEO mind-reading.

– Cramer, grumpy cat edition.

– Spiegel squints hard at Google. Really hard. With graphics. Read more

The 6am Cut London

Asian stocks fell || Apple earnings just shy of forecasts || Nine more banks in US Libor subpoena || Samsung growth expected to slow after record quarter || S&P downgrades BNP Paribas || Still no deal for Greece || Credit Suisse wants to run a stock exchange || South Korea’s growth slows || Penguin/Random House talks confirmed || Odey buys 5%stake in Man || UK economy mystery solved?  Read more