Posts from Thursday Feb 14 2013

The Closer

ROUND-UP

FT markets round-up:“Disappointing European economic data crimped optimism about global growth prospects and weighed on global stocks. The single currency also fell sharply on the day. The FTSE All-World equity index fell 0.1 per cent as the FTSE Eurofirst 300 closed 0.2 per cent lower. In New York, the S&P 500 turned an initial 6 point loss into a 1 point advance to 1,521 — a fresh five-year closing high.” (Financial TimesRead more

Buckets of cov-lite

The CLO kind of got off lightly in Fed governor Jeremy Stein’s “Overheating in credit markets” speech.

Makes sense, given what Stein was mostly talking about — places in the market where the yield chase could be relying on assets that in turn rely on short-term funding. In other words, leverage that turns “overheating” into a supernova. Read more

Did you hear the one about Rosneft’s 500m barrel hedge?

Philip K. Verleger, veteran independent energy consultant, has been doing some sleuthing concerning some of the more opaque areas of the oil market.

What he’s unearthed is interesting, to say the least. Read more

Elon Musk vs The New York Times

Cars and motoring are not really FT Alphaville’s specialty. But we do love public spats.

The current one running between Tesla and SpaceX founder Elon Musk and John Broder of the New York Times is particularly engaging. It regards Broder’s test-drive of the Tesla Model S and his subsequent rubbishing of the experience in an article that claimed the electric car ran out of battery early and generally failed to perform in cold weather. Read more

Buffett does Heinz

That’s coming from CNBC who are suggesting Berkshire are going to hit them with a big bag full of $28bn.

Here’s the snaps from Reuters while we wait for something official waiting over, it’s official and the statement is below:

14-Feb-2013 12:47 – BERKSHIRE HATHAWAY INC BRKa.N TO BUY H.J. HEINZ CO HNZ.N FOR $28 BLN – CNBC CITING SOURCES

 Read more

Markets Live: Thursday, 14th February, 2013

Live markets commentary from FT.com 

The (early) Lunch Wrap

German and French economies contract as Euro area GDP disappoints || Japan’s recession continued in Q4 || The BoJ maintained asset purchase programme size and rates || AB InBev makes offer to seal Modelo deal || Rolls-Royce names next chairman || Fat-cat referendum in Switzerland || Rocky road lies ahead in trade pact talks || US Treasury, banks, businesses criticise EU Tobin tax plans || FSA warns banks not to leave Libor || Rio Tinto falls into $3bn full-year loss || AMR board approves US Airways deal || CITIC buys stake in Australia’s Alumina for A$452m || Google sues BT over patent || Time Warner in talks to spin off magazines || ‘Abe trade’ boosts macro hedge funds || SAC Capital probe widened || Monte Paschi former finance chief held || Markets summary || Valentine’s day GDP massacre || Isda committee decision on SNS Bank CDS weird or what? || Exorcising eurozone ELA as we know it Read more

Valentine’s day GDP massacre

(Header credit to UBS’ Paul Donovan)

Flash estimates for euro area GDP below. Warning: they’re not pretty. Read more

Further reading

Elsewhere on Thursday,

- Root causes of currency wars.

- David Graeber: Debt is bad, or something…?

- Beyond hydraulic policyRead more

The 6am Cut London

Japan’s economy failed to grow in Q4 || Asian markets higher on Abenomics hopes || BoJ continues as expected || US banks, Treasury, etc criticise EU Tobin tax || AMR-US Airways deal agreed || Google sues BT over patent || Macro funds do well on Abenomics yen short || CITIC buys stake in Australia’s Alumina || Barclays puts everything first Read more