Posts from Tuesday Jan 8 2013

The Closer

ROUND-UP

US stocks edged down for a second day. The S&P 500 closed down 0.3 per cent at 1,457.15. Read more

Let’s talk about Goldman’s prop-trading

GOLDMAN SACHS HAS A SECRET PROPRIETARY-TRADING UNIT THAT IS RISKING THE BANK’S OWN CAPITAL BY MAKING INVESTMENTS AND CEO LLOYD BLANKFEIN SAID GOLDMAN WASN’T PROP-TRADING ANYMORE AND THAT IS WRONG AND HE LIED AND HE SHOULD BE HOG-TIED WITH HIS OWN BLACKBERRY CHARGER.

That’s a typical reaction to this Bloomberg piece on Goldman’s “secret” prop-trading team for you. Read more

Moving targets and a lack of self-belief at the BoJ

Oh look, it’s the Abe effect. How exciting. From Reuters:

RTRS – BOJ TO MULL SETTING 2 PCT INFLATION TARGET AT JAN 21-22 MEETING, DOUBLE CURRENT PRICE GOAL – SOURCES

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The coin as negotiating strategy

A lot of people seem to be talking past each other about the Trillion Dollar Coin idea. That sometimes happens on Twitter and the blogosphere, where much of the debate has taken place.

But one place to start a reasonable discussion is to note again that nobody really disagrees with this: Read more

Greek government finds it can’t have its moussaka and eat it

Greece has had a break from the headlines recently, but how long can it last? With a banking system that’s soon going to need shoring up again, probably not long. Read more

A guide to the liquidity coverage ratio, for whingers

We’re still getting over Mervyn King saying the following when announcing changes to the liquidity coverage ratio, as Kate reported on Monday (emphasis ours):

Since we attach great importance to try to make sure that banks can indeed finance a recovery, it does not make sense to impose a requirement on banks that might damage the recovery

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Steel yourselves: What sub-6% Chinese growth will do to various assets

Massive kudos to Societe Generale for attempting to answer a question we’ve long wondered (but figured would be insanely difficult to estimate).

The question is: if China does have a ‘hard landing‘ — or anything significantly below the consensus — how will that affect assets x, y, and z? Read more

Markets Live: Tuesday, 8th January, 2013

Live markets commentary from FT.com 

More miserable jobs numbers for Europe

You really do wonder how long this trend can be allowed to continue. From Eurostat on Tuesday…

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On the transient necessity of central bank independence

Nowadays, the idea of not having an independent central bank is seen as being a bit backward. One could even say that central bank independence is widely accepted as the optimum set-up for any country’s monetary system, a reflection of its developmental status.

“Independent central bank? Check.”

“This country must be civilised. ”

Yet, can we really be so absolute about the matter? Read more

The (early) Lunch Wrap

Banks reach mortgage settlements || HSBC’s exit from Ping An in jeopardy || Samsung profits reach record || Japan to buy ESM bonds from FX reserves || Dreamliner fire probed || Anglo names Cutifani as chief executive || SEC investigates E&Y || India to curb technology imports || Japan executives worry about weak yen ||  Read more

Thank you America, but…

Fresh from its latest heart-warming ad campaign AIG is probably considering how to put together its next one, which our non-existent sources suggest will showcase Robert Benmosche, its chief executive, both having a cake and eating it too.

From Dealbook:

The board of A.I.G. will meet on Wednesday to consider joining a $25 billion shareholder lawsuit against the government, court records show.

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Something is afoot in Chinese shadow finance

This post is not about another Chinese shadow financing innovation, or the possible or actual blowing up of said innovative products. Nope. Something even worse…

Although the new Chinese leadership seems so far unenthused about major reforms, a few strategists have detected signs in the past couple of weeks that the country’s authorities are preparing to crack down, somehow, on shadow financing. Read more

Further reading

Elsewhere on Tuesday,

- Expect to be disappointed.

- Countdown to early LTRO repayments

- Liquidity trap, heralding changeRead more

The 6am Cut London

Asian markets fall || US banks reach $20bn mortgage settlement || Japan to buy ESM bonds from FX fund || Samsung announces record Q4 profits || HTC misses expectations || Dreamliner fire investigated || Japan pension fund to double gold holdings Read more