Posts from Tuesday Mar 26 2013

The Closer

FT markets round-up: “A calmer mood prevailed in the markets after the volatility of the previous session, as participants took a positive view of some mixed US economic data and attempted to put lingering concerns about the eurozone to one side. Indeed, the S&P 500 US equity index rose 0.8 per cent to finish within two points of the record closing high of 1,565.15 it set in October 2007. The FTSE Eurofirst 300 closed 0.2 per cent higher, although there were further losses for peripheral eurozone equity markets, with the Ibex 35 in Madrid shedding 1.8 per cent and Milan’s FTSE MIB down 1 per cent.” (Financial Times)

Warren Buffett will become one of Goldman’s largest shareholders, after a deal to convert billions of dollars of warrants into common stock. Berkshire Hathaway was originally issued the warrants as part of investing $5bn in the bank during the crisis, giving it the right to purchase about 9 per cent of the bank for $115 per share before October 1 this year. Tuesday’s revised deal will see Goldman issue Berkshire stock equivalent to the company’s paper profit on the position (Financial Times, Goldman statement). Buffett’s gain of a 2 per cent stake from the deal will making him a top 10 Goldman shareholder (Wall Street Journal, Bloomberg). Read more

Argentina en banc? Mais non

Guess it pretty much comes down to the alternative ‘formula’ for paying its holdouts which Argentina will be making to the Second Circuit at the end of this week, then.

The court on Thursday denied the government’s separate request to have its pari passu case reheard ‘en banc‘ — that being when a full court hears your case, instead of a panel of judges (which is usual): Read more

Depositing some calm, at least for the little guys

A small antidote to Messr Dijsselbloem if you will.

 Read more

Clearly, all this green stuff can wait

Today should have been the day when ex-BP chief Tony Hayward and a raft of other energy and security luminaries got to their feet at a conference hosted by the UK’s biggest green power trade body. But the Renewable Energy Association’s “Symposium 2013” at the historic Mayfair headquarters of the Royal Institution has been cancelled due to lack of interest.

The programme’s here if you can be bothered to clickRead more

Deal with failed banks the Dutch way: rely on the ECB, deposit insurance, and the public’s faith in the government

The irony police dropped by FT Alphaville on Tuesday. They asked us to reverse back to the last European bank bailout before Cyprus: the nationalisation of Dutch financial group SNS Reaal. The government of the Netherlands, complete with a finance minister by the name of Jeroen Dijsselbloem (have you heard of him?), used their freshly minted Intervention Act to expropriate the shareholders and subordinated bondholders in order to help finance the February 1st nationalisation. Read more

Quality time with the ailing Dutch commercial real estate sector

The latest bank-sovereign crisis always gets the most attention. Despite the best of intentions, no amount of preparation can get the current flair-up ready to have its place in the limelight stolen. Once torn, salt is rubbed into the wound by means of nasty comparisons that disrespect the unique nature of one’s distress. Ireland is not Greece! Portugal is not Ireland! Italy is not Spain! And Cyprus is special because of gangsta finance and its reliance on deposits for funding…

Grow up. Everyone has problems.

That said, we’ve carved out a special place in our schedules this morning to spend some quality time with one of the middle children. Aren’t we good? And so to the Netherlands, where the government nationalised SNS Reaal, the parent company of SNS Bank, on February 1st. It used its shiny new Intervention Act and everything. Read more

Markets Live: Tuesday, 26th March, 2013

Live markets commentary from 

The (early) Lunch Wrap

Cyprus banks to stay closed for days || Dell founder set to explore deal options || Worries hit RIM after US launch || IPO fundraising jumps 50 per cent || Boeing flight-tests Dreamliner batteries || Berezovsky death ‘consistent with hanging Read more

Further reading

Elsewhere on Tuesday,

– Golden shackles.

Overheard in Brussels.

Cyprus thesesRead more

The 6am Cut London

Cyprus banks to stay closed for days: “Cypriot banks will remain closed until Thursday, the government announced on Monday night, as President Nicos Anastasiades acknowledged that the country had come ‘a breath away from economic collapse’ before its last-minute bailout. Speaking after he agreed a €10bn international rescue that includes the restructuring of the island’s two biggest lenders with losses for bigger depositors, Mr Anastasiades also said capital controls would be imposed but as a ‘very temporary measure that will be gradually relaxed’.” (Financial TimesRead more