Posts from Thursday Nov 15 2012

The Closer


Stocks, Walmarted. The Dow closed down 0.2 per cent at 12,542, while the S&P 500 also fell 0.2 per cent, after the US retailer’s latest forecast came in below expectations. Read more

Treating bonos as Treasuries, with MF Global

Hat-tip to the FT’s Tracy Alloway…

Some interesting detail from the House Financial Services Committee’s report into the collapse of MF Global. It’s an account of the broker-dealer’s arguments over the capital treatment of the eurozone sovereign debt which was used in its repo-to-maturity trades.

The gist of the argument was that the debt — Italian, Spanish, Belgian — should be treated as US Treasuries (safe, little to no haircut) or, oddly, as a corporate bond if it was Portuguese or Irish. Read more

SFO: “Truly out of the norm”

Not a good day for financial cops. Hot on the heels of the FSA losing what it probably thought was a slam-dunk insider dealing case, the SFO has now received a withering “Judgement on Costs’ over its toe-curling execution of the Tchenguiz case.

The brothers get substantially all their legal bills paid. Here’s the judgement. Click to read. Read more

Mizuho’s love triangle found 33% guilty

So they’re innocent. Really.

Yes, really. From Bloomberg:

Two girlfriends of former Mizuho International Plc investment banker Thomas Ammann were found not guilty of illegally trading on tips from him about Canon Inc.’s acquisition of OCE NV.

 Read more

Is Rajoy considering an IMF-only bail-out?

A report in the Spanish paper El Confidencial says that the Spanish government is considering asking just the IMF for aid in an attempt to bypass Eurogroup conditionality.

It seems quite an unlikely option (and no sources are cited) but it may nevertheless be an indication that the government is feeling increasingly anxious about its ability to hold out on asking for a bailout. Read more

The eurozone in recession in ‘all senses of the word’

As expected, the eurozone economy shrunk in the third quarter. But, fortunately, not by quite as much as expected.

Thursday’s data did, however, confirm that the debt crisis in southern Europe is hitting the ‘core’ economies in northern Europe, and analysts seem in agreement that it’s going to get significantly worse. Read more

Markets Live: Thursday, 15th November, 2012

Live markets commentary from 

A vault floods on Wall Street…

Who doesn’t like a good conspiracy theory? Or, umm, even a really bad one?

This narrative about DTCC’s experience of hurricane Sandy posted by “enerchi”. We think the original is from Bix Weir — it’s appearing in quite a few places around the interwebs. Read more

The (early) Lunch Wrap

Xi Jinping is new Chinese leader || Hopes of China reform dashed || Germany and France grow in third quarter || BP facing record US criminal fine || JP Morgan has power trading rights restricted || Obama speaks to Israel and Egypt on Gaza || Markets update || Fed debates comms policy || Goldman partner list out || Edwards expects a disappointing new year || Jennings sells rest of RanCap Read more

Further reading

Elsewhere on Thursday,

– We can kind of relate to this.

– We can kind of relate to this, also.

For this we need a Congressional Committee?

– Trending… done properlyRead more

The 6am Cut London

China’s conservative Politburo Standing Committee announced | BP could pay largest US criminal penalty in history | Sony shares reach 1980 levels | Panasonic cutting another 8,000 jobs | Texas Instruments cutting 1,700 jobs | ICAP shuts NYSE floor trading ops | Japan’s megabank losses pile up | DTCC finds 1.3m Sandy-soaked securities Read more