Posts from Wednesday Apr 17 2013

Corporate liability, and Kiobel

Some light reading late on Wednesday… the United States Supreme Court’s ruling in Kiobel v Royal Dutch Petroleum.

That is Royal Dutch Shell, whom the court ultimately found for in a strong 9-0 decision (while split on the reasoning). It’s quite a case. Read more

The Closer

ROUND-UP

Fears over weak earnings hit Apple: Apple investors’ nerves were rattled on Wednesday as concerns about falling earnings were compounded by poor results from a supplier and more criticism in the Chinese media. The iPhone maker is on Tuesday expected to report its first year-on-year decline in quarterly earnings for almost a decade, according to Wall Street estimates. Many analysts also forecast a drop for the financial year. (Financial TimesRead more

Exiting unconventional policy will be unconventional

From chapter 3 of the IMF’s latest global financial stability report, in a section dealing with the risks to central banks from exiting unconventional monetary policy:

Risks associated with increasing interest rates include the following: Read more

The changing nature of inflation

The IMF’s latest World Economic Outlook has made some very interesting observations about the changing nature and growing stability of inflation.

Most notable is the following chart:

 Read more

EU kills the patient again

The operation was a complete success; the patient died. Who thought we’d see a need for that joke again in relation to the EU, so soon after Cyprus? This time it’s the carbon emissions trading scheme, or EU ETS, and the consensus is it’s been dealt a near-mortal blow by a vote in the European parliament.  Read more

Chart du jour, the Gold Vix

By way of the CBOE:

 Read more

Markets Live: Wednesday, 17th April, 2013

Live markets commentary from FT.com 

China’s credit-to-GDP ratio, updated (and why it matters)

Following on from our post on Monday comparing China’s relatively low GDP growth and its relatively high levels of new credit…

Here are some updated charts from Michael Werner of Bernstein Research, which show that the total stock of non-government and non-financial debt to nominal GDP continued to climb to new levels in Q1 (it was 193 per cent at the end of 2012): Read more

The (early) Lunch Wrap

Credit Suisse faces shareholder revolt || Gold’s fall costs Paulson $1.5bn this year || Intel’s gross profit margin falls hard || Burberry beats estimates || Yahoo display ads sales disappoint || Tesco profits plunge on £2.4bn writedown || BHP Billiton reaffirms full-year production guidance || Italian police freeze €1.8bn of assets of Banca Nomura International || 787 battery decision expected ‘soon’: Read more

Further reading

Elsewhere on Wednesday,

- Mt Gox and the Orcs.

- It’s all about durable manufacturing.

- There’s no break at 90 per cent debt-to-GDP.

- A call for an AUD floor.

- The China anti-corruption effect? Read more

The 6am Cut London

Asian stocks rose for the first time in three days as new-home construction in the US beat forecasts and the yen weakened, helping the Nikkei rise 0.9%. The MSCI Asia Pacific index gained 0.5% cent after dropping 1.2% over the past two days. (Bloomberg)(Financial Times)

Credit Suisse is facing a shareholder revolt over pay after ISS, the proxy adviser, asked investors to block the bank’s plan to issue 27m shares – worth more than SFr700m ($760m) at current market prices – for employee bonuses. (Financial Times) Read more