Posts from Wednesday May 15 2013

The Closer

All-time highs for the S&P 500, the Dow — and Google. The company’s shares hit $916.38 during trading, closing above $915, a 3.3 per cent gain. The S&P 500 rose 0.51 per cent (Reuters).

Elon Musk will buy $100m of stock in his company’s offering. Tesla Motors announced the raising of common shares and convertible notes to repay its loan from the US Department of Energy (Tesla statement). Read more

Risk goes on, Risk goes off

Deutsche Bank’s Stuart Parkinson and Rineesh Bansal kick off their tale of RoRo on a controversial subject: where did the phrase risk-on/ risk-off originate. We’ve had some outlandish claims sent our way in the past.

A colleague who shall remain nameless once claimed he had invented RoRo (and the question mark) but we feel there is a ring of truth to the suggestion that a company called Riskmetrics, originally a JP Morgan project born to gauge the level of risk being run by the firm, actually has the dubious honour. Read more

“Something to ponder while hoping for the best”: Cyprus and the IMF

Quite a lot to ponder really. Members of the IMF’s executive board were set to meet on Wednesday to discuss whether to approve lending to Cyprus, more or less behind closed doors.

But maybe not so much this time. It looks like Stockwatch in Cyprus has obtained a copy of the members’ comments on the Cypriot bailout — a rather high-level internal document to find its way to the public… and it makes for fascinating reading. Read more

The super soaraway Nikkei [updated]

Nikkei 15,000 comes courtesy of a weak yen and increasing earnings expectations which carry some potentially elevated valuations with them. If you need any evidence of how sensitive the Nikkei has become to the yen’s rise, here’s a chart to ease your suffering:

But there are other things at work here. Read more

Rise of the funding altruists

FT Alphaville’s series on the rise of the collaborative economy has so far looked at a new type of growth, how peer-to-peer lending is a return to full-reserve banking, and the link between social networks and evolutionary game theory.

In the latter post we considered the value of reciprocity and collaboration, and whether what appears to be altruistic content generation really is self-serving after all?

But what about the rise of completely altruistic models like crowdfunding websites? Read more

‘Collectively, humanity has yawned and decided to let the dangers mount’

So writes the FT’s Martin Wolf in his column today, which starts out noting that atmospheric carbon dioxide concentrations exceeded 400 parts per million last week, the highest level in 4.5m years.

As he says, if we take a prudential view of public finances, then surely a similar approach to something irreversible and much costlier” is warranted.< Read more

Markets Live: Wednesday, 15th May, 2013

Live markets commentary from FT.com 

The (early) Lunch Wrap

FT Alphaville is hiring! || Meet Bloomberg TradeBook || China GDP forecast revisions || Bloomberg withdrawal || US budget deficit declines faster than expected || France falls back into recession || HSBC announces more cost-cutting || China to surpass US corporate debt market in next two years || Latest on JPM shareholder vote || Walmart won’t join other retailers in factory safety deal || German court rules against Google search suggestions || Flowers to acquire Cabot Credit || Market Update Read more

When credit markets become boring

Gary Jenkins from Swordfish Research is having a moment; but it’s an interesting moment. On Monday he wrote:

“A while back I said that everything was now a credit and at the time that seemed a fair appraisal of the situation… However the market moves quickly and it is probably fair to say that right now everything is a rate product.*”

(The Co-Op bank, he says in the footnote, being the exception that proves the rule.) Read more

Upgrade driven rally du matin

An upgrade in this environment is apparently stupidly effective. Here’s Greece’s 10-year bond yield tumbling a full one per cent the day after Fitch upgraded it to to B- from CCC, and said the outlook was stable:

 Read more

That sighing sound you hear from China

… is strategists everywhere cutting their GDP forecasts.

Last week Standard Chartered’s China economist Stephen Green and his team slashed their 2013 forecast to 7.7 per cent from 8.3 per cent. Their 2014 forecast was cut to 7.5 per cent from 8.2 per cent.

Today, BAML’s Ting Lu cut to 7.6 for both 2013 and 2014, from 8 per cent and 7.7 per cent, respectively. Read more

FT Alphaville is hiring again

We are looking for a natural writer, with an interest in all things financial to join the FTAV team in London.

Enthusiasm for online journalism and/or blogging is essential – as is an ability to get up in the morning. (We start early.) Read more

All up in Bloomberg’s broker-dealer business

The world is becoming intimately acquainted with the technical ins-and-outs of the Bloomberg LP empire.

There is Bloomberg’s bread-and-butter business of selling sophisticated data terminals to thousands of banking, hedge fund and regulatory authorities around the world. There is also the well-respected news wire run by Matt Winkler. Read more

Further reading

Elsewhere on Wednesday,

- What does Japan mean for everyone else?

- Just make the banks… smaller.

- On outrageous and overreaching action. Read more

The 6am Cut London

Nikkei reaches 15,000, yen weakens || HSBC announces $2bn – $3bn more cost cuts || JC Flowers buys debt collector Cabot || Sinopec issues jumbo $3.5bn bond || Some JPMorgan shareholders targeting other directors, not Dimon || Three Chinese airlines cancel flights after threats || Wolf on climate change Read more

Nikkei 15,000

There it goes:

Nikkei 1day  Read more