Posts from Wednesday Nov 21 2012

The Closer

FT markets round-up:”Oil prices swung in a 2 per cent range, as traders reacted to developments in the Middle East and to signs of tighter supply in the US. The announcement of a ceasefire to end a week of violence between Hamas and the Israelis briefly interrupted the commodity’s upward trajectory, but by late in the day Brent crude was back up 1.1 per cent at $110.99 a barrel. WTI, the US benchmark, was also 1.1 per cent higher at $87.66 a barrel. Traders were also surprised by data showing a decline in inventories in the US, where signs of an improving economy suggest higher fuel demand in the near-term. The Energy Department said oil inventories decreased by 1.5m barrels last week to 374.5m barrels, the first decline in three weeks. The wider markets shrugged off a failure to agree the latest bailout for Greece, though trading was light ahead of the US Thanksgiving holiday. The FTSE All-World equity index was just 0.2 per cent higher at 213.69, recovering losses from earlier in the session, following the release of some encouraging US data.” Read more

Is someone circling Pacific Drilling?

Does US-listed Pacific Drilling look like a credible takeover target? We think it probably does, 0n balance, and we’d very much like to find out more. Read more

The contrarian corporate liability switch

Some interesting stuff on corporate balance sheets from SocGen’s Albert Edwards on Wednesday.

Edwards observes, for example, that corporate leverage is finally recovering after a temporary retraction:

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Thank you, Libor

A judgmental structure of supervision that emphasises the big issues has to be matched by proper transparency . . . or it won’t work.” Andrew Bailey, head of prudential regulation at the Financial Services Authority, told that to parliamentarians on Monday.

Too bad there’s seemingly no tradition of transparent supervision in the UK, especially when it comes to banks. Read more

US Markets Live, 21 November 2012

Live markets commentary from FT.com 

US Markets Live, turkey edition

The turkeys would be HP/Autonomy — and anything else we care to talk about on pre-Thanksgiving US Markets Live this Wednesday at 10am New York, 3pm London, with Cardiff and Joseph. See you there!

Markets Live: Wednesday, 21st November, 2012

Live markets commentary from FT.com 

The (early) Lunch Wrap

Glencore-Xtrata merger to win EU clearance || Japan posts biggest China trade deficit || Cohen linked to $276m insider trading scheme || Bernanke bearish on fiscal cliff || Adoboli jailed for UK’s biggest bank fraud || Markets update || The ‘technical’ issues that broke up the Eurogroup meeting || Meg and the HP Lynchmob || JPM’s Zames on impact of new regs || The personalised pricing revolution || The definitive guide to the RBA’s ‘passive intervention’ in the AUD || Muddy Waters vs Olam: from New Zealand, with fudge Read more

The personalised pricing revolution

In Marrakesh, there is no such thing as a fixed vendor price.

The price you pay is determined by who you are, how well you barter, and the supply and demand fundamentals of the product you’re trying to buy on that on that specific day. Read more

JPM’s Zames asked about impact of new regs, replies with ‘meh’

We’re developing a soft spot for that Keith Horowitz at Citi. Ne’er did a man express so much joy at an interest rate sensitivity disclosure. That’s our kinda cute.

This time Horowitz has gone to meet Matt Zames, JPMorgan’s new co-chief operating officer and operating committee member. They talked pendulums: Read more

Those ‘technical’ issues that broke up last night’s Eurogroup meeting

About that meeting of eurozone finance ministers, ECB and IMF officials that collapsed in the early hours of this morning (at least, until Monday) for ‘further technical work’…

First: looks like our bold call was correct. Um, yay?

Second, Reuters says it has the document prepared for the meeting and circulated among the ministers. Read more

Further reading

Elsewhere on Wednesday,

- Greece talks fail, but it was all for naught anyway.

- Cue a slide in the euro.

- Twinkies face an uncertain futureRead more

Meg and the HP Lynchmob

The accused speaks.

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Eurogroup meeting, interrupted

Statement:

20 November 2012

Statement by the Eurogroup President, Jean-Claude Juncker

The Eurogroup welcomed the staff-level agreement reached between the Troika and the Greek authorities on updated programme conditionality, including a wide range of far reaching measures in the areas of fiscal consolidation, structural reforms, privatisation and financial sector stabilisation.

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The 6am Cut London

European finance ministers failed to agree on a debt-reduction package for Greece after battling with the IMF over how to cut the country’s debt. However the Eurogroup meeting in Brussels was interrupted “to allow for further technical work on some elements of this package” and will reconvene on Monday. (Bloomberg)(Statement)

“US officials have linked Steven Cohen, founder of SAC Capital, one of Wall Street’s most powerful hedge funds, to an insider-trading scheme that prosecutors called the most lucrative case of its kind.” The criminal and civil charges, filed by US prosecutors in Manhattan and the SEC against Mathew Martoma, a former portfolio manager at CR Intrinsic, a SAC Capital fund, do not accuse Cohen of any wrongdoing. (Financial TimesRead more