Good morning New York,
The off-loading of short-term USTs: Izzy looks at the latest flows in and out of the UST market and wonders if the expiration of the Transaction Account Guarantee may be having some impact on primary dealer positions.
On continuing the sovereign/bank doom loop: Kate wraps up the latest on the European Commission’s decision to ensure governments will be forced to indemnify the ESM against potential bailout losses, despite June’s eurozone statement that recognised “the imperative to break the vicious circle between banks and sovereigns”.
A uranium leak? Not the radioactive variety mind you. Paul notes that there‘s beem an interesting discrepancy between the price of uranium futures and the shares of Uranium One in recent months. Which is interesting since ARMZ, the group’s controlling stakeholder, announced on Monday that it would be taking Uranium One private.
Goldman eyes tax delay on UK bonuses: The bank is considering delaying payments until after April 6, when the top tax rate falls from 50 per cent to 45 per cent. Other banks had been considering such a move, but “the vast majority of banks have concluded in recent weeks that amid a hostile attitude towards anything that looks like tax avoidance, it would be reputationally damaging to press ahead with such a plan”. (Financial Times)
ESM bank rescue rules may put bigger burden on sovereign: Despite EU leaders’ vows last year to ‘break the vicious cycle’ linking governments and their own failing banking systems, a proposal seen by the FT suggests sovereigns in this situation will continue to shoulder a large part of the burden.(Financial Times)
JP Morgan board may release Whale report critical of Dimon: The board will consider on Tuesday whether to release the report, which finds fault with the oversight of several senior managers including CEO Jamie Dimon, along with the bank’s quarterly earnings on Wednesday, two people with direct knowledge of the matter said. (Bloomberg)
EU to pursue telco market integration: “Europe’s telecommunications commissioner will lay down a series of far-reaching reforms this year to support the formation of a pan-European telecoms market, in order to foster greater competition and investment in a sector hard hit by the financial downturn.” (Financial Times)
Goldman says ACA knew Paulson was shorting Abacus CDO: “ACA analyzed and chose the investments in the deal and should have been alerted by various “red flags” that Paulson wasn’t betting on the investment, according to the filing.” (Wall Street Journal)
UPS takeover of TNT Express collapses: The proposed €5.2bn takeover of Dutch delivery group TNT Express by UPS has collapsed after the European Commission indicated it would block the deal. (Financial Times)
Ferragamo CEO upbeat on 2013: Shares in Italian shoemaker Salvatore Ferragamo rose the most in six months after CEO Michele Norsa gave an upbeat appraisal of the fourth quarter and outlook for 2013. (Bloomberg)
Markets: Global stocks were starting the week at a fresh 19-month high as the new year rally trundled on, with some national benchmarks sporting multiyear peaks, reports the FT. Improving demand for growth-sensitive assets saw the FTSE All-World advance 0.2 per cent to 231.2, its best level since May 2011, while industrial commodities were firmer and perceived havens such as the US dollar came under pressure. The Chinese stock market, a laggard for much of 2012, was particularly exuberant – the Shanghai Composite index surged 3.1 per cent. Analysts had difficulty pinpointing the cause of the SCi’s sharp move, though Bloomberg reported traders were excited by comments from Guo Shuqing, chairman of the China Securities Regulatory Commission, who said the country could increase tenfold the size of two programmes that allow investors to buy securities on domestic markets.