Posts from Wednesday Apr 24 2013

The Closer


FT markets round-up: “Equity markets maintained their broadly positive tone as fresh signs of weakness in the global economy were offset by more forecast-beating earnings reports and hopes of additional central bank largesse. The picture painted by the day’s main US economic release was also gloomy. Headline durable goods orders tumbled 5.7 per cent in March, and by 1.4 per cent after stripping out the volatile transport component – less than the market had expected. The S&P 500 equity index ended virtually unchanged, with Apple edging lower after a volatile session in the wake of its first-quarter earnings report, released after Tuesday’s close. The FTSE Eurofirst 300 rose 0.7 per cent – its fourth successive gain – while Japan’s Nikkei 225 gained 2.3 per cent. An early bout of weakness for the yen boosted demand for Tokyo stocks, although the Japanese currency later recovered to trade flat against the US dollar.” (Financial TimesRead more

A Slovenia Q&A

So people are wondering if Slovenia will be the next eurozone crisis focal point. I can find Slovenia on a blank map, so we’re off to a good start. But how about some background?

Stop me when this sounds familiar. Read more

China’s growing debt, and Magnus on where it might be headed

These sorts of charts have been bothering a lot of people lately, including us:

Credit Rmb per GDP unit - UBS

This one, via UBS’ George Magnus, shows China’s debt back near a 2009, stimulus-era ratio. Only, this time, it’s without the stimulus-era boost to the economy. Read more

The decline of the oil spot market?

According to the EIA, the definition of “spot market” is:

The price for a one-time open market transaction for immediate delivery of a specific quantity of product at a specific location where the commodity is purchased “on the spot” at current market rates.

 Read more

Markets Live: Wednesday, 24th April, 2013

Live markets commentary from 

The (early) Lunch Wrap

How to write a AP tweet hacking story || On the virtuous circle of exporting deflation || The gold-Barca bubble || Barclays pre-tax profit falls || Apple tries to appease || Credit Suisse beats || ENRC chairman resigns || Australian central bank to invest in China || IT outsourcing companies to face toughened visa regime || Shell warns of shale delays outside US || Market update Read more

The gold-Barca bubble

Just saying. Read more

On the virtuous circle of exporting deflation

We thought the following from TD Securities’ Richard Gilhooly on Tuesday was a rather insightful way of looking at the whole BoJ effect (our emphasis):

While it remains a contentious point and as yet unproven, Japan’s devaluation and soaring Nikkei vs slumping DAX or Bovespa has all the hallmarks of a competitive devaluation. While competing factions debate the Monetary expansion/QQE, versus beggar-thy-neighbour interpretation, one positive aspect of the Japanese Yen collapse and fear of exported deflation has been collapsing commodity prices with weak growth in export countries (China, Germany, S Korea) and a stronger USD helping a supply story (crude inventories at 22yr highs) and weak demand send commodities into a bear market.

 Read more

Further reading

Elsewhere on Wednesday,

– What is KrugTron’s Blazing Sword? Japan.

– The real problem for Scotland is that it will be dealing with a government that thinks like Germany.

– How does inflation matter?  Read more

The 6am Cut London

Asian stocks rise || Lloyds branch sale to Co-Op falls through || Italian PM announcement due today || Portugal announces business stimulus measures || ENRC chairman quits || Amcor chief ousted || UK food stamp numbers more than doubled || US sues Novartis || What Merkel did  Read more