Posts from Monday Nov 5 2012

Einhorn vs the Daily Mail

Hours (well minutes) of fun courtesy of the EU.

It’s the new disclosure regime for short selling, which involves the FSA publishing a list of the most shorted stocks in the UK. Read more

The Closer

ROUND-UP

US stocks edged up. The S&P 500 closed up 0.2 per cent at 1,417.26. Trading volumes were light – 13 per cent below the three-month moving average (Bloomberg). Read more

The Fed’s dissenters

Nomura economist David Resler, in a valedictory research note, passed along the following chart as part of his thoughtful meditation on the Fed:

 Read more

A Dana Gas default

From Bloomberg earlier on Monday:

*DANA ASKS HOLDERS TO CONFIRM WISH FOR SUKUK TRUST DISSOLUTION

*DANA GAS SAYS ‘DISSOLUTION EVENT HAS OCCURRED’ ON SUKUK

Nov. 5 (Bloomberg) — Co. asks certificate holders to confirm whether they wish for the trust to be dissolved, according to statement carried by the regulatory news service.

That notice, says Exotix’s Gus Chehayeb, officially confirms that a technical default has occurred on Dana’s $920m Islamic bond, and that there was no official standstill agreement in place.

The default could also be a first for UAE public bonds. Read more

“Has experience, can’t travel”

Dhanlaxmi Bank takes advantage of executive wage stickiness to clean house and then announces:

“To cut costs and save on travelling expenses, the bank management has been keen on appointing directors from Kerala,” said a senior official. Read more

AAA ratings, alternative universes, and hindsight

Yes, it’s very bad for S&P. Australia’s federal court found that the ratings agency had misled local councils through assigning AAA credit ratings to CPDOs which it had failed to check properly.

But since this could well be a landmark case for credit ratings as causes of financial harm… Read more

Turkey’s pending upgrade to currency war footing

So, Fitch has become the first of the ratings agencies to upgrade Turkey to investment grade, giving it its first such rating since 1994. It’s been a while coming and the Turkish lira jumped at the news — up 0.9 per cent at pixel time against the dollar to a three month high:

So far, so rosy… if unsurprising. But there may be an interesting by-product of this overdue upgrade. Namely, it might force the Turkish central bank into a smidgen of FX fiddling. That is, if the upgrade actually matters and inflows really step up. Read more

Taking the ‘co-’ out of Morgan Stanley’s Kelleher…

Just out from MOST:

Morgan Stanley (NYSE:MS) today announced that Paul J. Taubman, currently co-President of Institutional Securities, has informed Morgan Stanley of his decision to retire at year-end. Mr. Taubman will retire after a 30-year career at Morgan Stanley. Colm Kelleher, currently co-President of Institutional Securities with Mr. Taubman, will become President of Morgan Stanley’s Institutional Securities division effective January 2013. Mr. Kelleher will continue to report to Chairman and CEO James Gorman.

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Is the ECB sticking to its collateral rules?

The ECB may have granted loans to the Spanish bank sector on too low an interest rate given the quality of the collateral posted, according to an investigation by Die Welt. It potentially raises rather worrying questions about the bank’s risk control systems and whether it is even following its own strict lending rules. Read more

Markets Live: Monday, 5th November, 2012

Live markets commentary from FT.com 

Who will AV endorse?

It’s a pressing question, obv.

Bryce and Murphy return to Markets Live duty on Monday, just in time for the US election. Read more

The (early) Lunch Wrap

US candidates in final dash || Standard and Poor’s guilty of misleading investors || UBS’s new IBD set up || Post-Sandy building boost for US economy || Apple’s two per cent foreign tax rate || Berkshire’s near-record cash mountain || Markets update  Read more

Buiter tackles Target2 (again)

Ok, this is pretty excruciating, but it’s an important (albeit emotional) debate…

Is the Eurosystem’s Target2 payment system toxic for the people of Germany? Should they be worrying like hell about this (click to expand):

 Read more

HSBC: provisionally scary

HSBC’s third quarter numbers are out. We got a relatively unexciting underlying profit figure of $5bn but a whack of extra provisions totalling $1.15bn, including $800m more to cover the bank’s money laundering troubles in the US on top of the $700m already put aside.

From HSBC (our emphasis): Read more

Further reading

Elsewhere on Monday,

- Starting with Election Poll 101, by Paul Krugman.

- Then moving on to philosophy of voting.

- And what all of it can do to you. Read more

The 6am Cut London

China services PMI shows moderate pace || Panasonic falls – again || ECB Spanish bank collateral questioned || Greece faces crunch austerity votes || G20: fiscal cliff is main economic danger || BofA optimistic on shareholder payouts || S&P found guilty in Australia ratings case Read more