Posts from Wednesday Jun 19 2013

The Closer


– The question before the court.

– Ben Bernanke came out guns blazing today.

– The death of print has been greatly exaggerated.

– Wall Street’s lawfare strategy against regulation. Read more

US Markets Live, FOMC presser

Live markets commentary from 

FOMC statement, 19 June 2013

The statement is below, plus click here to see the new economic projections — and another reminder that we’ll be hosting a special edition of US Markets Live for the presser starting at 2:25pm EST.

A few notes: Read more

US Markets Live! FOMC presser edition, 2:25pm EST

Wednesday’s ever so slightly-anticipated FOMC press conference with Ben Bernanke kicks off at 2:25pm EST (7:25pm in London). Cardiff and Joseph will be in their usual spot at Markets Live, following along with the questions to Ben over QE tapering…

They’ll also discuss the FOMC statement (out 2pm) and the new economic projections for a few minutes before The Bearded One gets in front of the cameras at 2:30pm. Read more

Females and the crisis

George Magnus, senior economic advisor at UBS has always been fond of demographics. In fact, he’s always warned the world about the dangerous side-effects of an ageing society, with specific reference to the case of Japan.

As he reminds us in a note on Wednesday: Read more

The WMP whack, revisited

It’s getting (a bit) clearer of late that China’s interbank crunch is deliberate policy.

Still, although of course “We cannot use as fast money supply growth as in the past, or even faster, to promote economic growth” sounds very serious, it’s a bit woolly. Why so keen to withhold official liquidity from Chinese banks, and continue withholding it, right now?

Which is why FT Alphaville is pondering the WMP angle again. Read more

Mediocrity and the civil service in China

Some interesting stuff from Stephen Green, Wei Li and Lan Shen at Standard Chartered:

Government officials get paid a lot more than their official wages. We knew of course that officials get all shapes and sizes of non-wage benefits (such as food vouchers, taxi cards, and utility bill subsidies), but Yuen Yuen Ang at Michigan University has got numbers.

 Read more

Markets Live: Wednesday, 19th June, 2013

Live markets commentary from 

The (early) Lunch Wrap

China cash crunch deepens as PBOC withholds funding || Cyprus president calls for bailout overhaul to save economy || Traders try to game Platts oil-price benchmarks || Two of the largest independent U.S. high-frequency-trading firms are in early merger discussions || The long Abenomics watch continues || Alcatel overhaul aims to cut costs by €1bn || Markets wrap || FTAV’s latest Read more

On what really is different this time around

Paul Krugman says it himself: it’s the similarities between our time and other economic periods that often offer the best insight. But he’s currently in Paris thinking deep Parisienne style thoughts, which might explain the following…

There are, as he notes, some important distinctions to be made this time around, not least globalisation’s impact on the role of intangible rents.

Consequently, we may be living in an economy in which profits no longer remotely resemble a “natural” aspect of the economy. They are, one might say, somewhat synthetic. Read more

Further reading

Elsewhere on Wednesday,

– The bizarre border between the US and Canada.

– The great Canadian sperm shortage.

– Rates and bubblenomics. Read more

Bad-banking RBS, a PCBS side-track


If the Government simply purchased assets for the bad bank, it would have to issue a significant volume of gilts which if done quickly could have undesirable consequences for gilt markets and the price of Government borrowing.

 Read more

Vacancy for fig leaf

If you are the “politically astute” person to run UK Financial Investments — then hurry!

The application deadline ends on June 21: Read more

The London 6am Cut

Senior bankers should face a criminal offence of ‘reckless misconduct’ under a toughened sanctions regime for failures at UK banks, according to the Parliamentary Commission on Banking Standards. The Commission’s long-awaited 571-page report also criticises UK governments for “clearly not acceptable” interference in the running of part-nationalised lenders (Financial Times).

Full report HERE, summary HERE — other key recommendations: Read more