Posts from Monday Jun 3 2013

The Closer


– “No, the IT revolution is not over” — says this Fed paperRead more

El-Erian: A more differentiated yet expanded market assault on carry

Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, discusses recent market swings.

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The ECB, negative rate confusion and the prepay tax option

The ECB meets this week and expectations about what Draghi and team may or may not do seem to be erring towards the non-event side of things.

But, as Beat Siegenthaler at UBS observed in a note on Monday, there still seems to be a lot of confusion about the likelihood and usefulness of negative rates being introduced. A rise in eurozone rates over the past two weeks has only added to the confusion: Read more

No longer partying as it’s Y99

That’s the yen on the left hitting Y99.69 at pixel and the Nikkei, right, having lost nearly half of its speedy 2013 gains since May 22 (click to enlarge):

A disgusted Shinzo Abe appears after the break…

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A move to monthly? Let’s hope not

James Surowiecki has written an eloquent piece in The New Yorker, which sadly also happens to be completely wrong-headed.

He’s tackled the vexed issue of insider dealing, which appears to be getting worse and worse, certainly in the US… Read more

Markets Live: Monday, 3rd June, 2013

Live markets commentary from 

The (early) Lunch Wrap

Turkish stocks tumble after protests || Oil majors plan extra $1bn Alaska investment || Google set to pass Apple as app platform || South Korea says G8 needs to tackle unintended consequences of Abenomics || Glencore, Blackstone eye a Rio Tinto ore business || Wells chief warns Fed over debt proposal || SAC sees investors pulling out $3.5bn || Analysts predict emerging market rout || Tax probe in France targets UBS unit Read more

Intended consequences and the yen

From the pen of South Korea over the weekend:

South Korea has warned that G8 leaders need to do more to tackle the “unintended consequences” of Japan’s monetary easing when they gather for a summit later this month amid mounting concerns about the knock-on effects of a weaker yen.

In an interview, Hyun Oh-seok, the South Korean finance minister and deputy prime minister, said that international co-ordinated action was needed to mitigate the impact of so-called Abenomics on currency markets.

First: “unintended consequences”? Not sure about that. It all seems very intentional from where we’re sitting. Read more

A Greek bond raid

We are not quite sure what is going on here.

Japonica Partners, a self-styled “entrepreneurial co-investment firm” based in Providence, Rhode Island, has launched a tender offer for almost 10 per cent of all Greek government bonds in circulation.

It’s ready to buy paper worth €2.9bn at par, paying a minimum of 45 per cent of face value. Read more

Further reading

Elsewhere on Monday,

– It’s nice to be back at Princeton.

– Providing jobs to unemployed Americans in the here and now.

– The movement of people and its consequences. Read more

The 6am Cut London


The Nikkei started the week with another sell-off. The index fell to a six-week low earlier on Monday with a 2.8 per cent fall, following Friday’s 1.4 per cent decline in the S&P 500 (Reuters). The Tokyo market is now more than 15 per cent off its multiyear high set on May 23 (Financial Times)Read more