Posts from Thursday Apr 18 2013

The Closer


FT markets round-up: “Equity and commodity markets in the US and Europe had a choppy time as investors struggled to shake off lingering concerns about the prospects for global economic growth. Gold also experienced a fresh bout of volatility but managed to keep intact its recovery from a two-year low struck earlier this week. The yellow metal was up 0.8 per cent to $1,387 an ounce, although silver edged back slightly. In New York, the S&P 500 fell 0.7 per cent after swinging through a 13-point range. Apple continued to exert a negative influence as investors fretted that the company was experiencing falling sales. In late trade, the CBOE Vix volatility index, often called Wall Street’s “fear gauge”, was up more than 6 per cent. In Europe, the FTSE Eurofirst 300 index finally settled a fraction lower – its fifth successive decline. The Nikkei 225 in Tokyo fell 1.2 per cent.” (Financial TimesRead more

Was that promise of ratable payment wrong? Should Italy not have done that?

File under: Argentina’s battle with its holdouts and the effects thereof on pari passu clauses in sovereign bond contracts elsewhere in the world — with a special crossover to the changing legal status of official lenders in the eurozone crisis.

Spot the difference edition. Read more

The interbank repo effect and gold

Here’s an interesting thought. Could the gold sell-off be related to a squeeze on collateral brought on by a series of very different bank crises in Europe, starting with the SNS Reaal nationalisation and Anglo Irish emergency assistance operation and culminating with the Cyprus crisis?

It’s a theory being considered by Jeffrey Snider, chief investment strategist, at Alhambra Investment Partners.

The basic point being, when you haven’t got anything to repo and funding becomes tight, gold is likely to sell-off in anticipation of further banking and asset problems. Read more

Markets Live: Thursday, 18th April, 2013

Live markets commentary from 

The (early) Lunch Wrap

Kiobel v Royal Dutch Petroleum || Mission Impossible: ECB Governing Council minion edition || Apple investors rattled || US ousts China as the top destination for Japanese exports || Fears over low rates || Brazil increases rates || Deepwater Horizon trial || Ebay’s revenue miss || Bank of America setback || Markets Update Read more

Mission Impossible: ECB Governing Council minion edition

Your mission, should you choose to accept it, is to collect seven briefing documents for a meeting of the ECB’s Governing Council. As always, should you or any of your colleagues be caught or killed, FT Alphaville will disavow any knowledge of your actions. This blog post will destruct if our servers go down. Good luck, dear readers. Read more

Further reading

Elsewhere on Wednesday,

– The great divergence.

– Why Jeremy Grantham invests in oil.

– The sum of bank partsRead more

The 6am Cut London

Asian stocks lower, gold falls || Japan trade deficit narrowed by US demand || G20 to focus on monetary policy, debt || Weidmann talks of rate cutting possibility || New BHP chief begins to make mark || SFO demands ENRC documents || Reinhart Rogoff critics write  Read more