Posts from Thursday May 16 2013

The Closer


– Central bank competence is a technologyRead more

Bove vs Bloomberg, redux

Dick Bove’s focus is on this?

The ex-Rochdale banking analyst, now at Rafferty, has found a hook in the Bloomberg terminal-snooping story for his latest note: Read more

The end of QE?

Marc Ostwald at Monument Securities has spotted that an important theme is developing: a rise in the number of warnings about QE suspension and QE exit.

As he noted on Thursday regarding the recent warnings from the BIS and the IMF:

To my jaundiced eye, I would have to say that the warnings below from the BIS and IMF within one hour of each other today on QE, suggests that this is the beginning of the end for QE! Am not sure that everyone else will share that view, but this cannot be a simple coincidental warning shot that has no material consequences – watch this space!

 Read more

Stress you next year

This is one way to respond to the mess Euroland is in over who should make the calls for recapitalising banks…

The European Banking Authority is delaying its next banking stress test to 2014, to wait for both new asset-quality reviews and the ECB’s Single Supervisory Mechanism (so is it to wait for Wolfgang Schaeuble?): Read more

Man walks into a gold bar. Au!

FT Alphaville participated in a “Gold Bulls vs Bears” event hosted by the Association of Mining Analysts (AMA) on Wednesday.

The motion being discussed was:

Is gold’s role as a safe haven asset in the global financial system outdated and redundant and if the ubiquitous QE programs have been successful and the global economic upturn is confirmed, the price of gold will continue to struggle?

 Read more

A glorious episode in the history of the Revenue

The risks here are major embarrassment to the ChX, HMRC, the LBS, you and me, not least if GS withdraw from the Code

‘ChX’ =  Read more

Glenstrata – where life imitates Mark Kleinman

From the Skyman, writing in his CityAM column on May 2…


What is it about former BP chief executives and the top boardroom post at Glencore, the commodities trader?

 Read more

Markets Live: Thursday, 16th May, 2013

Live markets commentary from 

The (early) Lunch Wrap

Japan’s economy grew at the fastest pace in a year last quarter || Lawyers for JPMorgan Chase have demanded that Bloomberg hand over data logs || Richemont chairman to take a break || IRS chief quits over Tea Party scandal || UK High Court rules Goldman Sachs tax deal lawful || Chinese FDI misses forecasts || RP Martin has removed its chief executive and an executive director from their posts || David Cameron is “open to all ideas” for returning RBS to private ownership || Platts fought an attempt to impose new regulations on world oil benchmarks last year || Spanish banks are bracing themselves for a fresh financial hit || Banks sue Lisbon over ‘toxic’ asset allegations || Brazil raised a record Rbn in its first auction of licences for oil exploration blocks || Warning over SWF opacity || Markets wrap || FTAV’s latest Read more

The short arm of the SEC

So, there was evidence this week that the US authorities might finally be getting to grips with the Chinese reverse merger scandal, whereby a string of Chinese companies exploited lax listing rules to shake down naive American investors.

Executives at RINO International, a steel industry supplier, have been charged by the SEC with inflating revenues 15 fold in their US filings, while some of the proceeds from a reverse merger and $100m cash raising in 2007 were diverted to buy a house in Orange County, two Mercedes Benz cars and also funded shopping trips to the Chanel and Valentino stores in Beverley Hills. Most of the rest of the money was dispatched to China. Read more

Further reading

Elsewhere on Thursday,

Dirty medicine.

– In search of that targeted lending scheme in Europe.

– Cells as living calculators.

Abundant Star TrekRead more

Breaking up is hard to do – Rio Tinto edition

In the M&A hall of shame, Rio Tinto’s top-of-the-market $37bn acquisition of Alcan (in CASH) is right up there. In this century, at least.

It was a truly disastrous deal that nearly killed the Anglo-Australian mining company and its after-effects are being felt to this day. Just ask Tom Albanese. Read more

The 6am Cut London

Japan falls on bank forecasts || Japanese Q1 GDP beats forecasts || JP Morgan wants Bloomberg employee logs || RP Martin removes CEO and one director || Chinese FDI misses || Spanish banks brace for push on NPLs || Cameron ‘open to ideas’ on RBS || The few who set oil benchmarks  Read more

Abenomics passes an early test

Japan’s economy grew at the fastest pace in a year last quarter, with solid growth in consumer spending and exports suggesting the expansionary policies of Shinzo Abe, prime minister, are delivering quick and tangible results.

Government data on Thursday showed that real gross domestic product increased by 0.9 per cent in the three months to March, or 3.5 per cent in annualised terms. It was the second consecutive quarter of growth, after a rise in October-December that the government revised upward to 1 per cent.

That’s from the FT’s Jonathan Soble.

Of course, quite a lot happened after the end of Q1 as well. Read more

An unusual bear market

We are, of course, talking about iron ore which has slipped into bear market territory overnight (defined here as 20 per cent fall from a recent high).

 Read more