Posts from Wednesday Nov 14 2012

The Closer


Conflict in Gaza unnerved the stock market. The Dow Jones Industrial Average lost 185 points to close at 12,570 while the S&P 500 closed at 1,355, having fallen 1.4 per cent. Israeli armed forces struck militant targets in the Gaza strip on Wednesday, killing the Hamas military chief and leading the group to threaten to “open the gates of hell” in response. Oil prices also reacted to the conflict, rising 1.1 per cent (Reuters, BloombergRead more

‘Several participants were concerned that quantitative thresholds could confuse the public…’

That’s a line from the latest FOMC minutes.

Fed officials were debating this idea (C Garcia’s written about it, it’s also inherent in the Kocherlakota and Evans Rules) of using economic variables such as inflation and jobs market indicators in place of actual dates to guide when they might raise rates again. Read more

We few, we happy few, we shoal of squid

Via the press release, here are the lucky few (lucky seventy to be precise) to make the Goldman Sachs partners list; the highlight from what we can see is one David Schwimmer.

This ever-so-slightly anachronistic ceremony takes place every two years and the numbers have been steadily falling… nice cash to go with the cachet, though.

From Bloomberg:

[The number of new partners is] down from 110 in 2010 and 94 in 2008. Partners, known as participating managing directors, typically receive a $900,000 salary, up from $600,000 two years ago, and a cut of a special bonus pool that’s awarded primarily in stock, according to a person with knowledge of the firm’s policies.

 Read more

Jennings sells the rest of RenCap

Moscow-based financier Stephen Jennings is finally giving up control of Renaissance Capital, the investment bank he founded 17 years ago, to his Russian billionaire partner Mikhail Prokhorov.

More detail over at Beyond BricsRead more

US Markets Live Reminder

We’re kicking off at the usual place and time: 10am New York time, 3pm in London.

While you’re waiting for a call from Uncle Lloyd to find out if you’ve made partner, come have a chat with us about US macro, Cisco earnings and what they mean for the US, the MBIA/BofA standoff, the latest out of Europe, and more. See you there!

Merry Christmas and a recessionary new year

As the festive season draws nearer, Albert Edwards brings us good cheer:

Expect the New Year to bring nothing but disappointment.

Yes, our favourite bear argues that even though we’re getting relatively decent US economic data, it’s falling corporate profits to come we should be concerned about. In short, he argues the US is already entering another recession. Read more

Global housing: big losers and policy winners

Since housing generally went bust in 2007-2009, the sector’s performance has been a mixed bag globally. This has given the economics team at Goldman Sachs a chance to use the verb “bifurcate”, which is quite frankly one of the most brilliant words in the English language Read more

Pssst! FT Alphaville is changing

From November 19th, we’re introducing a FREE registration system to read our posts. It’s exactly the same as the registration. Already use that? No need to do anything!

If you’re new to FT registration or want to know more about this change, please read on. Read more

Markets Live: Wednesday, 14th November, 2012

Live markets commentary from 

The (early) Lunch Wrap

Blankfein warns over cuts || Obama seeks advice to avoid fiscal cliff || Japanese PM offers to dissolve Diet || China’s new leadership takes shape || Gold to top $2,000, says Deutsche’s Key || Markets update || Comparing global industrial recoveries || Portugal’s growing discontent || A mini flash crash in Dollar Thrifty?  Read more

Further reading

Elsewhere on Wednesday,

– The top 10 per cent’s tax share.

– What makes gold so unique?

– What do we want? Better risk disclosure from banks! Read more

The 6am Cut London

Signs of strengthening US demand support optimism about a global economic rebound, according to Cisco’s latest forecast. Revenues rose 6 per cent at Cisco in its first fiscal quarter, above the 4 per cent expected by analysts, with the company pointing to a pick-up in demand. “The US has to lead the total globe out of this slowdown,” said John Chambers, Cisco’s chief executive, adding that capital spending could jump if demand remained strong into early next year. (Financial Times)

Asian markets crawled forward. Volume was almost a third below the 30-day moving average for the Nikkei 225, which was flat. Shares in Sharp jumped more than 7 per cent after Kyodo News reported Intel interest in taking a stake. (BloombergRead more