Posts from Thursday Dec 6 2012

The Closer

ECB slashes economic outlook || Bank of England holds monetary policy || Berlusconi’s party withdraws support from Monti’s government || Japanese futures hit highs || Venezuelan bonds rise || Apple to move some manufacturing to US || Facebook in talk to buy ads technology || Rolls-Royce faces possible prosecution Read more

Death Star II nowhere, sadly

At first glance, we admit this petition to the White House to secure resources and funding, and begin construction of a Death Star by 2016 has got “no brainer” written all over it… Read more

All of this has happened before and will happen again, sovereign pari passu edition

On October 26, the Second Circuit chucked out Argentina’s appeal against having to pay bond holdouts, having had “little difficulty concluding” that the defaulted debt’s dusty, old — but contractually standard — pari passu clause demanded rateable payment. Read more

It’s a tough short life

Muddy Waters’ Carson Block has made some big claims about the companies he and his colleagues have targeted and shorted, the latest of which is Olam. But the extent to which the market has been willing to follow his trades has been falling. More importantly, the willingness of sovereigns to support their listed companies has been rising. The combination of the two suggests shorting Block-style is getting less profitable. Read more

The ghost of the leveraged super senior

Debates about asset valuation can quickly turn philosophical. The FT’s story on Deutsche Bank on Thursday provides fresh fodder, carrying allegations from three ex-employees that the bank failed to properly value certain credit derivative positions and thereby created a misleading impression of its health.

At first we thought, ‘umm, yeah, Deutsche Bank and others, no?’ But the mention of Berkshire Hathaway seemed an interesting twist. Read more

Draghi’s ready to get negative

Obvious dovishness + Draghi’s admittance that the ECB is operationally ready for negative deposit rates = that. Read more

Paging Isaac Newton

He might also be able to explain why Apple shares continued to struggle at the US open on Thursday. (Market cap below $500bn at pixel time, huge opening volume) Read more

Markets Live: Thursday, 6th December, 2012

Live markets commentary from 

The (early) Lunch Wrap

HSBC money laundering fine could total $1.8bn || Fiscal cliff update || Citi will cut 11,000 jobs and take a $1.1bn writedown || Global cartels fixed display prices for a decade, EU finds || SEC charges Wells Fargo banker, nine others with insider-trading || Standard Chartered sees $330m Iran fine, profit rise erodes || Rolls-Royce reveals SFO corruption probe || Apple shares fell a lot on Wednesday || McAfee arrested in Guatemala || Existing MMF reforms aren’t enough || DoE study backs US gas exports || Markets Read more

Bugger the bankers, the musical

We make no apologies, this is good… also, we think there is a lack of musical comment going around at the moment. We’d remedy that ourselves but a quick survey of the London desk confirmed that none of us can sing (h/t these guys)

Papering over the cracks at Deutsche (allegedly)

Deutsche Bank failed to recognise up to $12bn of paper losses during the financial crisis, helping the bank avoid a government bail-out, three former bank employees have alleged in complaints to US regulators.

That’s from a story by the FT’s Tom Braithwaite, Kara Scannell and Michael Mackenzie. Citing those ever-dependable people familiar with the matter, it seems three individual Deutsche staff went separately to the SEC in 2010 and 2011. What’s the collective noun for “whistleblowers.” Read more

Further reading

Elsewhere on Thursday,

Bonus envy.

– Tech versus bank stocks.

– The interstate war for businesses. Read more

The 6am Cut London

Deutsche Bank staff say up to $12bn losses hidden || HSBC ‘may pay $1.8bn’ over money laundering || Asian stocks higher on US data || Citi cutting 11,000 jobs || Fiscal cliff talks a little more upbeat || US gas exports green lighted || Freeport acquisitions get lukewarm reception || McAfee arrested in Guatemala Read more