Posts from Thursday Feb 28 2013

The Closer


Sequestered stocks? The S&P 500 shook off its gains in the last minutes of trading, falling 0.1 per cent after an earlier 0.6 per cent increase (Bloomberg). Read more

Bondholders, a two-pack, and “all necessary measures”

The EU’s Council and Parliament agreed on the text for two-pack laws on “enhanced surveillance” of sovereign bailouts on Thursday. It should be on the books soon.

So, if what happened in Greece last year was “exceptional and unique”… Read more

Cap and still trade

Some time ago Brussels decided that capping bankers’ bonuses is going to help prevent another financial crisis. A very fashionable move. In fact, the passage of the Basel reforms was contingent on a cap being introduced, so after months of negotiations, a deal was finally stuck this week.

From the FT (our emphasis):

Bankers’ bonuses are to be capped at twice their salary and banks will be subject to a strict transparency regime, under a provisional EU deal that includes minimal concessions to cushion the most severe pay crackdown since the 2008 financial crisis.

 Read more

A US housing ‘swirlogram’

Courtesy of Goldman Sachs.

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Lundin Petroleum mum on Sinopec talk

Swedish oil company Lundin Petroleum declined to comment on rumours that it has been in talks to sell a significant equity stake to China Petrochemicals Corporation. Read more

Ye olde Abenomics

All this has happened before and will happen again… at least, so hopes the Japanese government.

Current finance minister Taro Aso has been keen to channel the spirit of his 1930s equivalent Korekiyo Takahashi, whose polices are widely credited with pulling Japan out of the Showa Depression. It’s understandable. Read more

All you ever wanted to know about the AUD and who’s holding it*

Strong currencies are the bane of every triple-A rated, QE-less economy in currency war-torn 2013, it seems. It’s become an increasingly irksome point in Australia, where the initial exuberance over cheap foreign holidays has been slowly replaced by worries that it’s squeezing the non-mining sectors.

An FOI request by Bloomberg yielded a bunch of documents from the Reserve Bank of Australia about the currency’s overvaluation problem. Specifically, how bad it is and who’s to blame. Well, who among other central banks*, at least. Here’s list of the definitely-implicated: Read more

Markets Live: Thursday, 28th February, 2013

Live markets commentary from 

The (early) Lunch Wrap

EU secures deal to cap bankers’ bonuses || Iberia charge pushes IAG to €997m loss || RBS seeks more time for branch disposals || Apple shareholders in protest vote on pay || Shell puts Arctic ambitions on ice || JC Penney loses one-third of its sales || Markets: Bulls back in charge Read more

The battle for Bumi flares again [Updated]

We assume that the Bumi survivalists, led by Sir Julian Horn-Smith, never really expected Nat Rothschild to just retire from the scene after suffering defeat in the boardroom power struggle.

And so it has proved. Rothschild is still a subscriber to the Jakata Post and he’s noticed a curious item — the allegedly late disclosure of the sale of a stake in a subsidiary to what is reportedly a Bakrie family entity. Read more

Kuroda’s BoJ nomination is go

As was widely tipped early this week, Asian Development Bank president Haruhiko Kuroda has been nominated for Bank of Japan governor, while academic Kikuo Iwata and Hiroshi Nakaso, a BoJ official, were put forward for the two deputy governor roles.

It wasn’t a big surprise: as the FT reports, the yen briefly weakened to 92.6 from 92.4 on the news, before regaining that loss. Read more

Further reading

Elsewhere on Thursday,

– It’s Frankfurt that should be your worry – not Rome.

– Ricardian equivalence and the case of the EU.

– Aeroflot’s prospective 1-year old board member. Read more

The 6am Cut London

Asian markets up || Kuroda nomination confirmed || European bank bonus caps passed || Vivendi may suspend GVT sale || Shell pauses Arctic campaign || Argentina won’t pay holdouts regardless of ruling || Chinese provinces cut growth targets || BP ‘misreported’ vital data  Read more