FT markets round-up:“Stocks gathered strength amid signs of momentum in fiscal cliff talks in the US. The FTSE All-World equity index is up 0.6 per cent as Wall Street’s S&P 500 staged a late surge to close at its best level of the day, up 17 points to 1,430. Industrial commodities are lower. Copper is retreating 0.4 per cent to $3.65 a pound and Brent crude is down 54 cents to $107.64 a barrel. The dollar index, which tends to decline when equity investors are feeling more optimistic, is fractionally lower. Gold is up $2 to $1,697 an ounce and the euro is changing hands at $1.3163, compared with Friday’s close of $1.3161. Earlier the FTSE Eurofirst 300 saw a loss of 0.1 per cent and the Asia-Pacific region also slipped 0.1 per cent.” (Financial Times) Read more
China snuck something out last Friday that just might be pretty significant…
From the FT: Read more
Some Praet-prattle in the WSJ last week has put a bit of a dampener on the idea that the ECB is gonna go for a negative deposit rate in the near term. Read more
Being cross about the Basel III liquidity ratio is so in season. One just can’t be seen dead smiling about it. It simply won’t do. Much better to join the other banks, and the ECB, in being all pouty about it. We’ll not even have the slightest smirk until the Basel Committee has agreed to loosen the criteria for eligible assets and made the outflow scenarios a lot less Beyond Thunderdome. Read more
Social media strategy is more of an art than a science, as HM Revenue and Customs was busy proving Monday morning as it tried to encourage people to file their taxes online by the end of next month… Read more
Live markets commentary from FT.com
Citi declared a few weeks ago it had three equity analysts focused solely on Apple, which generated a bit of intrigue and also some ridicule (some traders thought it was “just a marketing ploy” by Citi, according to CNBC). Those analysts came out with a ‘buy’ recommendation, though with a target price of $675, below consensus.
But now in the depths of December, Citi’s Glen Yeung, Walter Pritchard and Jim Suva have cut the rating to ‘neutral’ and the target price to $575. Investors in Hon Hai Precision (aka Apple’s biggest supplier, Foxconn) did not like it one bit:
It’s bad enough having the most expensive bank bailout around. But not getting official recognition for it? Unbearable!
Luckily for Ireland, there’s a concerted effort underway to right that wrong… (h/t Nama Wine Lake) Read more
An important conference attended by China’s new leadership indicates 2013 will be more of the same: no massive stimulus but no reforms, either. Instead, they will continue to oversee growth hinged on expansionary monetary policy, shadow banking, property price rises, and infrastructure investments. Read more
The landslide win for the Shinzo Abe-led Liberal Democratic party in Japan at the weekend pushed the Japanese yen to its weakest level against the dollar since April 2011 (inverted chart, don’t ya know):
Elsewhere on Monday,
– Apple’s strange weekend.
– The ‘something else‘ is the cost of finance.
– So much uncertainty, so little volatility. Read more
Asian stocks swung between gains and losses after Japan’s LDP party won a landslide victory. The Nikkei was higher as Japanese exporters rose on hopes the new government’s policies mean the yen will continue to weaken. Suppliers to Apple such as Taiwan’s Hon Hai Precision fell after Citi downgraded Apple. (Bloomberg)
Supermajority for Japan’s LDP: The opposition party led by Shinzo Abe won 294 of the 480 lower house seats in a landslide victory on Sunday. Together with its coalition partner Komeito, the LDP will be able to override most decisions of the upper house. Gridlock between the two houses stymied some policies of the DPJ government during the past three years. (Bloomberg)(Financial Times) Read more