Posts from Tuesday Dec 18 2012

The Closer


FT markets round-up: “Optimism on a US budget deal to avert the fiscal cliff and good news from the eurozone is encouraging investors back into risky assets and sending stocks to near 17-month highs. Wall Street’s S&P 500 kept its momentum through the day ending up 1.15 per cent and trading barely 20 points of a fresh five-year peak. When combined with a 0.4 per cent gain for the FTSE Eurofirst 300 and a 0.5 per cent rise for its Asia-Pacific peer, it has taken the FTSE All-World equity index up 0.9 per cent to 224.96, its highest close since the end of July 2011. The bright mood extended to the euro currency, which is up 0.4 per cent against the dollar to $1.3221, after Standard & Poor’s upgraded Greek government debt.” (Financial TimesRead more

Some outliers for 2013

In this festive time of hope and make-believe a list of the improbable but possible is surely appropriate. Luckily Deutsche just sent through its list of outliers for 2013 (we took the time to read number 2 and 3 twice): Read more

Why negative interest rates are a bad idea, by Capital Economics

Dear central bank of Santa,

We, the banks, think we have been really good this year. We didn’t pick on retail customers. We didn’t tell on our Libor manipulating friends. We respected our regulator parents. And most importantly we didn’t have a hissy fit that nearly brought down the global monetary system. Read more

FT Alphaville charity auction closes in less than a day!

The current range of prices for the T-shirts, polos, and hoodies we are auctioning in support of the Global Fund for Children is £5.50 to £180.00. The bidding will close this Wednesday morning at 9am UK time, so if you’re going to an office party tonight, it’s probably better if you bid sooner rather than later 🙂

The current state of play, including the number of bids, can be viewed here.

A snapshot, from low to high (roughly): Read more

Markets Live: Tuesday, 18th December, 2012

Live markets commentary from 

Hey look, even wealthy countries can suffer creditworthiness-threatening financial crises

Moody’s announced on Tuesday that it’s reviewing its sovereign credit ratings methodology, and seeking comment from industry participants.

The review comes probably not a moment too soon — and we are not just talking about the French getting very cranky. Bloomberg reckons Moody’s sovereign ratings are unpopular, even by the low standards of sovereign ratings popularity: Read more

The (early) Lunch Wrap

Dozens to be implicated in UBS Libor deal || Morgan Stanley fined over Facebook IPO || Apple and Samsung hit by latest US ruling || Boeing increases dividend by 10 per cent || Pro-gun US senator calls for new controls || Markets update || The big question that Starbucks raises, ft. Mr Potato Head || The January effect in European equities || Reserve managers turn sultry eyes towards China Read more

The big question that Starbucks raises, ft. Mr Potato Head

International transfer pricing might not win any awards for sexy topic of the year, but it is what’s at the heart of the debate around low corporate tax payments by the likes of Starbucks, Google, and Amazon.

To explain why, consider Mr Potato Head… Read more

The January effect in European equities

WARNING: what has happened is no guarantee of what will happen.

WARNING II: if you need the first WARNING, perhaps see us after class?

Anyway… here’s some January European equity lessons from Morgan Stanley: Read more

Further reading

Elsewhere on Tuesday,

– The insider trading sentencing chart gets more crowded.

– Where does trust come from?

– Brad DeLong wonders about Obama’s car-buying historyRead more

The 6am Cut London

Fiscal cliff talks advance || Asian shares rise || Tesco COO frontrunner for UK job || T-bills flirt with zero yield || Sharp’s shares surge on debt relief || Two in US convicted for ‘circle of friends’ insider trading || Sachs says Keynes is not the man for today Read more