Posts from Tuesday Nov 6 2012

The Closer


FT markets round-up: “Global stocks advanced, with the S&P 500 rising for a second day, as Americans headed to the polls to pick the country’s next president… The FTSE All-World equity index rose 0.7 per cent as the FTSE Eurofirst 300 closed 0.6 per cent higher, after the Asia-Pacific region added 0.2 per cent. On Wall Street, both S&P 500 and blue-chip Dow Jones Industrial Average rose as much as 1 per cent, while the dollar index fell 0.2 per cent. The S&P 500 closed 0.8 per cent higher. Among commodities, copper gained 0.5 per cent to $3.49 a pound, and oil prices traded back above the $110 per barrel. Gold prices jumped, with the precious metal up $29 to $1,715 an ounce.” (Financial TimesRead more

Elections, markets, nothing to see here

“Is it possible that the market crash is, in part, a direct consequence of the shifting polls that point to a near-certain Obama victory and with it his anti-capitalist agenda?”

John Tamny and Rob Arnott, 30 October 2008

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Well, how to headline this one…


As reported by Bloomberg on Tuesday. More as we get it. Read more

Ireland hits its ‘patent cliff’

Chart from Michael Saunders at Citi (click to enlarge):

What that shows is a pretty dramatic fall in Read more

Of anniversaries and odd couples in Japan

Well, we’re cheating a bit here as the anniversary was two days ago, but it still allows for a discussion of the “government versus the central bank” thing going on in Japan and gaining traction everywhere else. It’s been just over a year since Japan’s Ministry of Finance last threw a whole heap of yen at the US dollar — the selling started on October 31 and ended on November 4Read more

Working together on the CPDO dream

In the prodigiously long and detailed judgement from Australia’s Federal Court on the CPDO affair, there is a story jumping out from behind the complexity of the product itself. It’s about the key role played by former Standard & Poor’s employees who had left the rating agency to go to banks to help structure these products. Read more

Athens grinds to a halt

The Greek parliament will vote late Wednesday on the structural reforms and budget cuts demanded by the Troika. Reports suggest that the government will be able to get a majority. But in a last minute attempt to derail the vote, the country’s two main labour unions called a 48 hour general strike that started today.

These are the some of the scenes: Read more

Stevens and the RBA hold the line

So Glenn Stevens likes the nags after all.

Well, sort of.

For the first time since he took the helm of the RBA in 2006, the governor did not tinker with interest rates on Melbourne Cup day (a public holiday across parts of the country). Read more

Markets Live: Tuesday, 6th November, 2012

Live markets commentary from 

The (early) Lunch Wrap

Obama holds slender lead as polls open || France risks falling behind if it doesn’t reform its economy || Biggest banks given extra time on reform || Copycat litigation threat for rating agencies || Morgan Stanley has announced the departure of Paul Taubman || Europe, ECB at odds over Athens aid || Apple’s share of tablet market slips ||Pace of US bond deals accelerates after Hurricane Sandy || Equities in smaller emerging markets soar || Italy rejects bad bank || Markets data Read more

Quack, quack, says the post-election Congress

Excited about the election? Well, tomorrow you’ll have to face reality. Reality and ducks:

After US elections on November 6, Washington’s focus will shift to the fiscal cliff. The outgoing Congress will meet for another two months in what is traditionally called the ‘lame duck’ session.

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Think indie is cool? A case study from Citi

Or, to go even further, are the stalwarts of Citi a symbol of board resurgence? That’s the question asked by Benjamin W. Heineman, Jr on Harvard Law’s blog on Monday. Is this simply a long campaign by Michael O’Neill to push Vikram Pandit out, or does this incident underscore a more basic truth:

Independent boards of directors are still the best mechanism— or the least worst one — for holding business leaders accountable, even if many boards have failed in their attempts to do this, often in spectacular fashion.

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Further reading

Elsewhere on Tuesday,

– Nate Silver is giving Obama a 92 per cent chance of a second term.

– But what do the other pundits say?

– Americans, don’t waste your vote! Vote JohnsonRead more

The 6am London Cut

FT markets round-up: “Asian stocks were mixed and activity low with investors reluctant to make any big bets on the last trading day before the closely contested US election and with an eye on China’s leadership transition later in the week. The MSCI Asia Pacific index inched down 0.1 per cent with Japan’s Nikkei 225 Stock Average off 0.3 per cent, Hong Kong’s Hang Seng index down 0.2 per cent and the Shanghai Composite index retreating 0.3 per cent. South Korea’s Kospi Composite index added 0.3 per cent while Australia’s S&P/ASX 200 gained 0.3 per cent as the Reserve Bank of Australia is expected to cut interest rates later in the day.” (Financial Times)

“France risks falling behind crisis-hit Italy and Spain if it does not reform its economy, the International Monetary Fund has warned, adding to pressure on President François Hollande to stem the country’s industrial decline,” reports the FT. “In its annual report on the French economy, the IMF on Monday called for ‘a comprehensive programme of structural reforms’.” (Financial TimesRead more