Good morning, New York
Bye Cynthia! Anglo American has parted ways with Cynthia Carroll and the mining group does not know who’s going to replace her. (Not Mick Davis, apparently). For the moment Masa just notes that this departure leaves the FTSE100 with only two female CEOs going forward, namely Angela Ahrendts at Burberry and Alison Cooper at Imperial Tobacco.
A China property development recovery… or not? Capital Economics 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 StanChart 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, Kate’s not quite so sure…
Investment banking is boring. As SocGen wrote last week, it boils down to three simple components: “When we look at the investment banking industry, we believe that despite the deep complexities underneath, in the end, banks have three levers to manage their performance in investment banking: the yield per unit of asset that banks can generate, the cost income ratio, and leverage.” No wonder Matt Levine of Dealbreaker is bored. Head over to Lisa’s post for the full story.
He isn’t the Prime Minister, he’s a very naughty statistician: From the chair UK Stats Authority: “We believe that the current practices for pre-release access to official statistics are unsatisfactory, not least because they put those who have received such access in a difficult position, especially when they have to speak in public after receiving access and before publication.” It’s not the sternest of rebukes. Joseph’s post has more.
“Misunderstanding Financial Crises”, a Q&A with Gary Gorton: Gorton agreed to have an email back-and-forth with FT Alphaville about his new book, “Misunderstanding Financial Crises: Why We Don’t See Them Coming”. Cardiff’s post has the full exchange — it’s well worth your time.
S&P negative on French banks: The vicious circle linking the outlook for banks with their economies continued on Thursday night after Standard & Poor’s rating agency cited increased economic risks as the main reason for downgrading BNP Paribas, France’s biggest bank and changed the outlook to negative for 10 other French banks, including Societe Generale and Credit Agricole. (Financial Times)
US Libor probe widens: Nine of the world’s biggest banks are facing increased scrutiny from US state prosecutors probing alleged attempts to manipulate the lending gauge known as Libor. (Financial Times) (Wall Street Journal)
Amazon reported its first quarterly net loss since 2003 due to operating margins depressed by heavy investment in its operations and a large impairment charge on its stake in coupon website LivingSocial. (Financial Times)
Samsung Electronics, the world’s largest technology company by sales, reported record net profit for the third quarter as booming sales of its smartphones and flat panels offset slowing demand for memory chips. (Financial Times)
Bertelsmann and Pearson are in talks about combining their publishing divisions, Random House and Penguin, to create a global market leader in response to the strategic challenges of the fast-growing ebook business. (Financial Times)
Yahoo acquires social app: Marissa Mayer has made her first acquisition as Yahoo chief executive, buying an 18-month-old mobile app developer backed by Ryan Seacrest and Justin Bieber. Stamped, based in New York, has nine employees, including several who used to work at Google with Ms Mayer. Its app, launched a year ago, allows people to collect their favourite things – say restaurants or films – and follow friends and celebrities’ lists. (Financial Times)
Apple has warned that its rapid sequence of product launches, including the iPhone 5 and iPad mini, would put its profitability under pressure in the run-up to Christmas. (Financial Times)
Anglo American CEO departs: Cynthia Carroll has resigned from her post at the strike-hit mining company after almost six years in the job. The group said Ms Carroll would continue as chief executive until a successor had been appointed and “an appropriate transition has taken place”. (Financial Times)
Credit Suisse is seeking to develop a stock trading platform called Light Pool into an exchange and has had preliminary talks with regulators, according to people familiar with the matter. The plan isn’t yet public. (Wall Street Journal)
Markets: More corporate earnings woes – led by tech-giant Apple – are battering traders’ appetite for risk, pushing growth-sensitive assets lower. Money is moving into “haven” US bonds, nudging 10-year yields down 3 basis points to 1.78 per cent as worries about global demand prospects forces copper lower by 0.3 per cent to $3.54 a pound and leaves Brent crude weaker by 66 cents at $107.83 a barrel. (Financial Times)