Posts from Wednesday Mar 6 2013

The Closer


FT markets round-up: “Global stocks extended gains as sentiment was boosted by the sight of record levels for Wall Street blue-chips, following optimism over the US economy and expectations of continued stimuli from central banks. Away from equities growth-focused assets were less upbeat, however. Copper fell 0.7 per cent at $3.48 a pound and Brent crude traded below $111 a barrel for most of the session. This left so-called commodity currencies muddled relative to the greenback, the Australian dollar rose up 0.1 per cent but its Canadian namesake is off 0.4 per cent, the latter also impacted by a weak Ivey purchasing managers’ survey and after the country’s central bank held interest rates at 1 per cent. Yet, perceived fixed income havens generally struggled as they lost favour to stocks. Prices for Treasuries and Bunds eased back, forcing yields up 4 basis points to 1.93 per cent and 1bp to 1.46 per cent, respectively. The FTSE All-World equity index rose 0.2 per cent to 235.8 as it gained support from mildly firm performances in Europe and the US.” (Financial TimesRead more

The age of infinite equity?

Financial pundits, academics, fund managers and analysts all have an amazing tendency to over-complicate matters.

Sometimes, however, it takes just one person spelling out the obvious to really get to the root of the problem. Read more

February the strongest month ever for US buybacks

That’s according to a note this morning by Birinyi Associates, which adds: Read more

Pari passu, the cross-sovereign contamination

Some excerpts from a lawsuit filed by the Export-Import Bank of China (Taipei) against Grenada in a United States district court on March 4, 2013…

If you have been following the pari passu saga on ratable payment of sovereign debt — they tell their own story. (Click to enlarge all images.) Read more

Raising the RUFO in Argentine bonds

In case you didn’t fancy ploughing through our 3,000+ words on NML v Argentina last week at the Second Circuit…

Barclays’ analysts have boiled down the next turning point in the pari passu saga into two paragraphs, in their March 5 note (irresistibly titled ‘Cram-down or sanctity of contract? Is there a way out?’): Read more

Markets Live: Wednesday, 6th March, 2013

Live markets commentary from 

The (early) Lunch Wrap

Venezuela’s Hugo Chávez dies || Samsung buys stake in Sharp || FBI joins SEC in computer trading probe || Legal and General dividend rise allays investor gloom || Microsoft faces EU fine for breaking pact || North Korea mixes Dennis with menace || Bolshoi star confesses to acid attack || Markets update: Global stocks are on course for a fresh four-year high Read more

Don’t kill the old, pander to them

“Whatever we can”, you say? Encouraging words from BoJ governor nominee Kuroda over the weekend (even if comparisons with Mr Draghi are overblown). If Cullen Roche is correct, what happens in Japan over the next year or many could change the future of economic policy. So it’s worth spending a bit more time on what Kuroda’s “can” might actually be.

We’ve argued already that much of the low-hanging fruit of expectations and verbal intervention has already been plucked. Read more

HFT woes Down Under

Australian authorities have been considering how to deal with algorithmic and high-speed trading since 2010. Long story short; the local Australian Financial Review says that the federal Treasury has decided that fees on high frequency trades orders are the way to go.

This prompted protests from the chief of Chi-X Australia, Peter Fowler, that market makers should be treated differently: Read more

Further reading

Elsewhere on Wednesday,

– Funding-for-Lending’s fatal flaws.

– There is no magic investing policy.

– Chavez unfondly remembered in two charts. Read more

The 6am Cut

Asian stocks climb || Chavez dies || Osborne anti-bonus cap bid fails || Samsung to take stake in Sharp || Permira cuts fund-raising target || Martin Wolf on the BoJ’s challenges || ECB likely to hold yet again Read more