Posts from Tuesday Apr 9 2013

The Closer


FT markets round-up: “Wall Street investors managed to shake off an early bout of earnings-related caution and push the S&P 500 to within a whisker of a record closing high, as the prospect of continued central bank liquidity prompted investors to once again ‘buy on the dips’. It was a different story in Tokyo, however, as the recent stellar performance of Japanese stocks – and the yen’s recent slide against the dollar – came to an end, for now at least. The US currency climbed to within a whisker of Y100 before running into profit-taking – although most analysts believed a breach of that level seemed inevitable given the Bank of Japan’s dramatic embracing of quantitative easing.” (Financial TimesRead more

Beyond GDP and the rise of the non-monetised economy

A great pick-up from Climateer Investing on the extremely important subject of whether we are collectively, as a planet, mismeasuring GDP by failing to account for the transformation of the economy into a service-oriented, information-based, digital entity.

It comes from Irving Wladawsky-Berger, the former IBM executive.

As he notes:

Gross domestic product (GDP) is the basic measure of a country’s overall economic output based on the market value of all the goods and services the country produces. Most measures of economic performance used by government officials to inform their policies and decisions are based on GDP figures. But, many concerns have been raised about the adequacy of GDP-based measurements given the major structural changes that economies around the world have been going through over the past few decades. GDP is essentially a measure of production. While suitable when economies were dominated by the production of physical goods, GDP does not adequately capture the growing share of services and the production of increasingly complex solutions that characterize advanced economies. Nor does it reflect important economic activity beyond production, such as income, consumption and living standards.

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So, who was KPMG’s LA guy allegedly leaking to?

Isn’t that the big question here?

Given that this story — about the auditor firing a partner over “providing non-public client information to a third party, who then used that information in stock trades involving several West Coast companies” — has now slammed straight into the Herbalife story. Read more

Ten times on the board: I will not put “Optimizing regulatory capital” in the subject line of an email

Don’t. Just don’t. No “I don’t think we should treat this as regulatory arbitrage” in an email. No cc’ing your personal Yahoo account. And certainly don’t put “Optimizing regulatory capital” in the subject line.

All in, below is a really good example of what not to put in an email, courtesy of Patrick Hagan, the chief quantitative analyst at JPMorgan’s Chief Investment Office from 2007. Read more

Catching up on the LTRO flow

First some charts from Barclays:

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Markets Live: Tuesday, 9th April, 2013

Live markets commentary from 

The (early) Lunch Wrap

Bernanke says stress tests are great || BlackRock urges Fed to rein in QE3 || Brokers at ICAP in CFTC rate swaps probe || Chinese inflation slows in March || North Koreans didn’t show up for work today at Kaesong industrial park near the border || GE agreed to buy Lufkin Industries, an oil and gas pumpmaker, for $3.3bn || KPMG has accused the partner in charge of its audit practice in Los Angeles of passing on confidential information about its clients to an alleged insider trader || Tesco counts cost of failed US venture || Hanglong Group’s botched $1.2bn bid for Australia’s Sundance Resources || Ron Johnson is out at JCPenney || Markets wrap || FTAV’s latest Read more

Guest post: QE on steroids in Japan

This is is a guest post from Philip Pilkington, a writer and research assistant at Kingston University.

In January of this year I noted that the Japanese government was embarking on a stimulus programme and briefly enquired into whether it would likely work or not . At the time media commentary was mixed. Some were saying that it would be a complete failure while others were overflowing with optimism. I was slightly more reserved. Read more

Further reading

Elsewhere on Tuesday,

– Society: Still basically hereRead more

The 6am Cut London

China’s inflation rate slowed in March || Asian markets higher || Bernanke talks stress tests || Thatcher obituaries || Nick Leeson working in Irish debt renegotiation || UK bank leverage ratios Read more