Posts from Monday Jun 10 2013

The Closer


– Should the US steal Australia’s superannuation system? Read more

How to dodge the money laundering police

Buy UK property, we suspect.

When it comes to money laundering, the estate agency sector in the UK is regulated by the Office of Fair Trading. Here’s the guidance that Britain’s 7,000 plus agents are supposed to adhere to. Click to read: Read more

Key man risk, Booz Allen edition

Many of the systems we develop, integrate or maintain involve managing and protecting information involved in intelligence, national security and other sensitive or classified government functions. A security breach in one of these systems could cause serious harm to our business, damage our reputation and prevent us from being eligible for further work on sensitive or classified systems for U.S. government clients…

— The S-1 filing of Booz Allen Hamilton’s holding corporation in 2010

The shares were down as much as 4.5 per cent at Monday’s open: Read more

USAA+, stable

Clearly, the planet — on tenterhooks since S&P cut the world’s biggest AAA-rated credit two years ago — can breathe easily once more.

This is the key bit of why Standard & Poor’s put its rating for the United States of America on a stable outlook again (they also don’t see a repeat of the debt ceiling threatening debt service this year): Read more

A female director purchases shares in her company: what happens next?

Does the Stock Market Gender Stereotype Corporate Boards? Evidence from the Market’s Reaction to Directors’ Trades.”

Does this title of a recently published study by a group of researchers at the University of Exeter make you think:

A. Hmm, “gender stereotype”. That’s wordy.

B. Oh boy, what’s the media going to do with this one… Read more

Swimming naked in China

China Everbright Bank placed itself directly in the firing line of terrible puns last week when reports it had defaulted started to circle.

Thankfully, Anne Stevenson-Yang from J Capital read into the news a bit further than most:

The interbank defaults last Thursday provided definitive, if indirect, proof that the cash coming into China is for financial investment and interest arbitrage. It masquerades as a trade surplus but is not. With the tightening of the domestic central bank credit window, Chinese banks are heavily dependent on these inflows for the cash they need to roll over loans. That is why the banks immediately went into distress when regulators decided to clamp down on fraud on the trade account.

 Read more

Markets Live: Monday, 10th June, 2013

Live markets commentary from 

Stock market wags economy, or not?

This is is a guest post from Philip Pilkington, a writer and research assistant at Kingston University.

After a few days of volatility the S&P 500 rebounded on the back of better than expected jobs data last Friday. Meanwhile the Nikkei, the decline of which the previous week seems to have precipitated the shakiness in the S&P 500, started to stabilize on Monday. And so the classic question rears its head once more: do stock markets drive the economy or vice versa? Read more

The (early) Lunch Wrap

Japan revised up Q1 growth to annual 4.1% || Backlash over US snooping intensifies || Indian rupee hits record low amid Fed ‘tapering’ worries || China’s economy stumbles in May, growth seen sliding in Q2 || SEC counsel faces whistleblower’s claims || Bank reforms spur BNP Paribas to merge US units || Hearing pits German monetary heavyweights against each other || Markets wrap || FTAV’s latest Read more

Japan: rolling coverage

The Nikkei was up 4.9 per cent at 13514 during the official Tokyo session, rising towards 13700 during after hours trading; the Topix was up 5.2 per cent and the yen 1.1 per cent weaker at Y98.6. Sigh… Read more

Further reading

Elsewhere on Monday,

– The zero upper bound and some Koo burns.

– Edward Snowden, interviewed.

Silent warRead more

The London 6am Cut

Japan revised up Q1 growth to annual 4.1%: “Japan has revised up its first quarter economic growth to 1 per cent, giving Prime Minister Shinzo Abe a boost as he seeks to strengthen his grip on power in next month’s upper house elections. Government data released on Monday showed that the economy expanded at an annualised rate of 4.1 per cent between January and March, lifted by strong household spending and a pick-up in private residential investment. That was much higher than the preliminary estimate of 3.5 per cent, which was already the fastest rate recorded by any Group of Seven economy.” (Financial Times)

Backlash over US snooping intensifies: “The Obama administration came under mounting bipartisan pressure on Sunday to scale back electronic surveillance following revelations last week that have raised new questions about government intrusion into citizens’ privacy. The calls came as the UK’s Guardian newspaper revealed that the whistleblower who leaked information about US surveillance activities was Edward Snowden, a 29-year-old former CIA employee who has taken refuge in Hong Kong, setting up a potentially delicate political issue with the Chinese authorities about his fate.” (Financial TimesRead more