Good morning, New York
Moody’s cuts France’s Aaa rating, may want to check if its next baguette explodes. The rating agency is maintaining the negative outlook originally conferred in February. Pierre Moscovici, French finance minister, was stoic at when the announcement came out. “Moodys is now giving France the same rating as Standard & Poor’s, which has allowed us to live with low interest rates for many months,” he told Reuters. Joseph’s post has the key parts of the statement by Moody’s. S&P cut its AAA rating for France back in January.
Bold AV call on Eurogroup discussion on Greece: No decision. There are so many aspects surrounding Greece’s ongoing refinancing needs still up in the air, it should come as no surprise that the agenda for Tuesday’s meeting of European finance ministers has reportedly been shrunk to addressing how an immediate €15bn gap can be bridged through to 2014. A further €17.6bn seemingly required to take the country through to 2016 can be discussed later. Paul’s post has more.
Glencore Xstrata is born, almost. Subject to the vote of Xstrata shareholders later on Tuesday, of course. And one or two regulatory hurdles remain. But while we wait for the XTA vote, click through to Paul’s post to see the voting results of the Glencore shareholder’s meeting.
Muddy Waters’ next target: Olam. With his reputation suitably inflated from his Sino-Forest adventures, Carson Block’s next target is Olam International, the Singapore-based commodities trading group. As usual with the companies Block focuses on, it should be assumed that that his firm, Muddy Waters, is shorting the name. More from FT Alphaville. Defence launched by Olam against Muddy Waters on FT.com.
A year in the life of the euro. David shares a EUR/USD chart from Morgan Stanley with annotations explaining what’s been behind the common currency’s ups and downs in 2012.
Credit Suisse will split off its investment bank outside Switzerland from its global private bank, wealth management and Swiss investment banking business to meet what it called “the new regulatory reality”. (Financial Times) Statement from the bank on FT Alphaville.
More Credit Suisse, as the New York attorney-general is preparing to file a lawsuit alleging the Swiss bank misled investors who lost more than $11bn on mortgage-backed securities. (Financial Times, Reuters)
Paul Otellini is stepping down from the top job at Intel, leaving no clear successor in place for the first time as the world’s biggest chipmaker struggles to find its way in the fast-growing smartphones and tablets markets. Internal contenders are thought not to have the needed background in semiconductors for mobile. Otellini was three years shy of Intel’s mandatory retirement age. (Financial Times, Bloomberg)
A lawsuit by AIG’s former chief executive was dismissed on Monday. The lawsuit alleged that the Federal Reserve Bank of New York broke the law during the 2008 government bailout of the failing insurance company. (Financial Times)
JPMorgan Chase replaced chief financial officer Doug Braunstein on Monday with Marianne Lake, a 43-year-old internal recruit, now charged with managing the US’s biggest bank by assets and dealing with the aftermath of the “London whale” trading scandal. (Financial Times)
The Bank of Japan kept its monetary policy on hold on Tuesday, resisting calls from politicians across the spectrum to do more to overcome the country’s persistent state of deflation. (Financial Times)
US banks are racing to fill a little-noticed capital shortfall by issuing billions of dollars of preferred shares, taking advantage of low interest rates and investors’ need for yield. After four years shoring up their balance sheets, most large US banks are closing in on a tougher target to hold more common equity as a buffer to absorb losses at times of crisis. (Financial Times)
Markets: A Monday rally that saw equities experience their best day for weeks, and gains for other risk assets, shuddered to a halt as concerns about the eurozone resurfaced. The FTSE All-World equity index, which managed to eke out gains overnight in Asia, slipped into negative territory after a downgrade of France’s sovereign credit rating curtailed risk appetite among investors. (FT’s Global Market Overview)