Posts from Tuesday Nov 13 2012

The Closer

Athens buys time || Harry Winston to buy diamond operations of BHP Billiton || Vodafone write down of £6bn in Europe, £2.4bn cash dividend from Verizon || Loan losses provisions of €3bn for Italy’s two biggest banks || Cisco System’s shares in relief rally || Bail-inable bank debt in the UK || Banks fight Basel III Read more

Another this time is different that’s not actually different, global industrial production recovery edition

Chart via Calculated Risk using data from Josh Lehner, and it compares the current US employment recovery against “the previous Big 5 crises, as identified by Reinhart and Rogoff, in terms of job loss and the return to peak time line”. Read more

Another day, another dollar (thrifty)

High-speed trading critics are abuzz this morning as an apparent mini-flash crash took place in shares of Dollar Thrifty Automotive Group. The car rental company fell as much as five per cent in matter of a minutes before recovering. Read more

Portugal’s growing discontent

Angela Merkel visited Portugal on Monday to give a message of “tough love”, as the FT put it:

The German chancellor praised Lisbon for the “courageous way” it had implemented deficit-reduction measures, saying there was “at the moment no reason to renegotiate” the adjustment programme… Read more

Vodafone on the slide

Bad news for just about every British pension holder on Tuesday morning as Vodafone shares fell 4.5 per cent following a set of disappointing first half results. Although the interim dividend was raised by seven per cent year-on-year, so shareholders are getting a bit of a sweetener but it’s not enough.

The company also said it would use $1.5bn of its $3.8bn cash dividend from its 45 per cent stake in Verizon Wireless on a share buy-back programme. Read more

Markets Live: Tuesday, 13th November, 2012

Live markets commentary from 

Has FQM’s board approved a £3bn bid? Dunno — UPDATE

It’s 2:45am in Vancouver. Do you know where your investor relations department is?

Here’s this morning’s Daily MailRead more

The (early) Lunch Wrap

IMF vs EC on Greece’s timetable || Top Republican suggests higher taxes on the wealthy || UK regulators investigate wholesale natural gas market manipulation || Leucadia agrees to buy Jefferies || NYSE suspended trading on 216 companies || Windows head leaves Microsoft || Bloomberg launches iTunesesque portal || Vodafone embarks on share buyback || Apple stores über productive || An S&P 500 earnings report card Read more

On Greek elephants

While Lagarde and Juncker go at it in the policymaker equivalent of hammer and tongs over timetables, there’s a risk here of people forgetting the numbers involved. Because they don’t add up.

Consider these two tables from David Mackie at JP Morgan. Click to enlarge. Read more

S&P 500 companies nearly done bringing report cards home

With the US earnings season drawing to a close, it seems a good time to examine the aggregate picture. In a note published on Monday, equity and quant strategists at Bank of America Merrill Lynch have done just that, for S&P 500 companies. Report card in the form of a pie chart (thank goodness this wasn’t how class results were presented at school): Read more

Further reading

Elsewhere on Tuesday,

– America’s fiscal delusion.

– Reich: ‘Obama shouldn’t begin with a compromise‘.

– Early signs of external adjustment within the eurozone. Read more

The 6am Cut London

The IMF and the EU creditors of Greece have openly sparred over debt targets, delaying its next bailout payment even further. Jean-Claude Juncker, chair of the Eurogroup, told an evening press conference that Greece’s debt should fall to 120 per cent of GDP by 2022, two years beyond the target long set by the IMF. Christine Lagarde, the fund’s director, used the same press conference to insist the original timeline must stay. “In our view, the appropriate timetable is 120 per cent by 2020,” Lagarde said. “We clearly have different views.” The European Commission sees the IMF’s view of the Greek bailout, which favours relief on Greece’s debts to official eurozone creditors, as too pessimistic compared to economic growth projections. A November 20 meeting will aim to bridge the differences. (Financial Times, Bloomberg)

Asian markets — down, led there by Australian banks and Chinese property developers. An Australian business confidence survey went into negative territory; the Nikkei drifted down more than 0.4 per cent. (BloombergRead more