Posts from Tuesday May 14 2013

The Closer

FURTHER FURTHER READING

- Why investors can’t imagine a collapse of the bond marketRead more

Finland’s got a secret… no longer

Abuse of official secrecy. It’s been one of the more corrosive but — by definition — shadier aspects of the eurozone crisis.

It can take the form of a report on money-laundering in Cyprus. Or the opaque process by which Troika debt sustainability analyses are drawn up. Emergency liquidity assistance to banks, even. Read more

Oh, my lovely Bloomberg, will we ever be the same again?

Bloomberg withdrawal (BBG wɪðˈdrɔːəl) noun.

Definition:

  1. Removal of all meaningful work space elements other than the desk, chair, phone, and headache tablets.
  2. Detachment from all those who matter in one’s work (and possibly also personal) life.
  3. Feeling of uncertainty that accompanies the suspicion that their terminal is somehow betraying them. Typically arises from reports in the media.

Unfortunately, an unusually high number of people may be suffering from the last one lately. Sorry about that.

In case you haven’t been following, there are two very separate threads to the Bloomberg kerfuffle. Read more

Eating yields… How does that make you feel?

This Fobor based paragraph is from a Bank of America Merrill Lynch note published earlier in the month which the FT’s Robin Wigglesworth brought to our attention:

In a world of zero rates, where $19.4 trillion of government bonds (that’s 48% of the total market) is trading below 1%, it’s little wonder the “lust for yield” is as strong as it is.

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JGBs: “Yes I would, Kent”

Japanese government bonds have kept stumbling. Small beer anywhere else in the world, but considering the policy experiment ongoing over there it’s worth keeping an eye on.

We’re not too excited yet but here’s a chart of five and ten year yields and some speculation anyway… Read more

This is a raid, oil price reporting edition

We suggest watching this story…

It looks like EU competition regulators paid some unannounced visits to oil company offices around Europe on Tuesday — note the reason: Read more

Social networks as evolutionary game theory

FT Alphaville has been taking a closer look at the collaborative economy, and noting the stellar growth this mysterious sector has been experiencing of late.

An important question to consider, however, is to what degree is this growth being driven by a genuine rise in reciprocity and altruism in the economy — or to what degree is this just the result of natural opportunism. Read more

P2P as full-reserve banking

FT Alphaville had the pleasure of moderating the “Future of Banking” panel at OuishareFest, a collaborative economy gathering, earlier this month.

During this discussion, an interesting point was made by Francois Carbone, CEO of an equity-based crowdfunding venture Anaxago. Namely, when you think about it, every peer-to-peer initiative (P2P) on offer today is really representative of a move towards a private sector version of full-reserve banking. Read more

Of stereotypes and the slow end of the European affair

Some charts from Pew’s latest survey of 8,000 people across eight EU countries, most of whom are increasingly *insert euphemism* with Europe:

 Read more

Markets Live: Tuesday, 14th May, 2013

Live markets commentary from FT.com 

The (early) Lunch Wrap

Sony to Loeb || CEO GO || That equities/commodities disconnect || Bloomberg messages leaked online || Watchdog probes energy & metals swaps || US to account for third of new oil supplies || Investor advisory firm hits out on Goldman exec pay || US housing groups to launch IPOs || Verizon Wireless will pay $7bn dividend to corporate parents || Obama outraged over claims IRS targeted Tea Party groups || Commerzbank moves to shore up capital || Market update Read more

That equities/commodities disconnect

Yes, we know it’s not new, but the divergence between stock markets and commodity prices is now looking extreme. Consider this chart from Julian Jessop at Capital Economics…

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Sony to Loeb: ‘Thanks, but no thanks Dan’

That’s the gist of Sony’s response to billionaire activist investor Daniel Loeb’s suggestion, made via hand-delivered letter, that Sony should break itself up. It stems from an NYT Andrew Ross Sorkin exclusive.

Loeb’s idea is basically: partially spin out Sony’s entertainment division via an IPO which Loeb’s Third Point fund would happily sign up to. He’d also gladly accept a seat on Sony’s board. As the NYT noted, Loeb is known for ousting Yahoo’s former chief executive and poaching Marissa Mayer from Google to run the company. His hedge fund has quietly amassed a stake of about 6.5 per cent in Sony, making it one of the biggest shareholders.

From Loeb’s letter to Sony’s president and CEO Kazuo Hirai: Read more

Further reading

Elsewhere on Tuesday,

- The argument for universal basic income.

- And guaranteeing people’s unconditional right to “life, liberty and pursuit of happiness“.

- 177 days… why equities feel invincible.

- Hedge funds snapping up US houses. Read more

The 6am Cut London

Asian shares firmer after US retail data beats expectations || Cameron rushes to EU referendum || CFTC queries a million exchange of futures for swaps || Help to Buy scheme already boosting UK housing || Big European clothing retailers sign binding garment worker accord || France looks to tax smartphones to support local content  Read more

CEO GO – saying sorry the Bloomberg way

Message from the CEO of Bloomberg

Dear Client, Read more