Posts from Thursday Apr 11 2013

The Closer

Not far off 1,600 for the S&P 500. The index closed at 1,593.37, a 0.3 per cent gain, following optimistic data on weekly jobless claims (Reuters).

The Bank of Japan will interpret its new inflation target “very flexibly”, its governor Haruhiko Kuroda said, stressing that the central bank’s attempt to double the Japanese money supply would not blow bubbles. “If there is any serious asset market bubble appearing or approaching, of course we will take necessary measures,” Kuroda added (Financial Times). Read more

The SEC vs Scott London

What moves people to give out insider trading tips?

That’s the allegation which the SEC has levied at Scott London, the former KPMG partner embroiled in a scandal over audits of companies including Herbalife and Skechers.

Here’s the full 17-page civil complaint (also alleging that Bryan Shaw used London’s info to trade shares): Read more

The evolution of luxury markets

Now that we have Chinese socialites engaging in public cat fights over who is richer, posting snapshots of their bank accounts “Rich Kids of Instagram style“, one has to wonder if it may be worth revisiting John Hempton’s prediction last year that the Chinese authorities will finally crack down on this sort of over-the-top gratuitous wealth display, and when that happens the luxury brands — among them Swiss watches — will begin to suffer.

(*We should note the “I’m really richer than you” meme possibly applies to Prince Alwaleed bin Talal as well). Read more

Markets Live: Thursday, 11th April, 2013

Live markets commentary from 

The (early) Lunch Wrap

Good morning New York,


Further reading

Elsewhere on Thursday,

– “No, I’M richer than you!”, (a.k.a adventures among the Chinese nouveau riche).

– The mythical $10,000 USD Bitcoin.

– A shabby, despicable little document on Cyprus.

– Two versions of Goodhart’s Law. Read more

The 6am Cut London

Asian stocks rose for a fourth day and the yen neared 100 to the dollar. The MSCI Asia Pacific Index gained 1.1 percent, the Nikkei rose 1.2% and the Hang Seng rose 0.8% but the Kospi was just 0.1% higher after the Bank of Korea kept borrowing costs steady. (Bloomberg)

China’s forex reserves and credit grow sharply: China is once again facing heavy capital inflows after its forex reserves rose $130bn to $3.44tn in the first quarter, helping to fuel a surge in credit growth amid concerns about the level of debt in the economy. It’s the biggest quarterly increase since the second quarter of 2011 and marks a sharp reversal from last year when money exited China. Total new financing in the economy grew 58% to Rmb6.2tn ($1tn) compared to the same period in 2012, faster than consensus expectations. (Financial Times)(Bloomberg) Read more