Posts from Friday Jul 12 2013

US housing’s resilience

The Q2 results from Wells Fargo and JP Morgan have again raised the issue of declining mortgage refinancings (if rates stay elevated), along with spurring more general worries about the housing market.

Here’s the Wall Street Journal on Friday: Read more

Spitzer’s attempted comeback

Above is a video by the FT’s Chris Booker this morning about the candidacies of Anthony Weiner and Eliot Spitzer for New York City mayor and comptroller, respectively. Read more

We go live to Fitch’s Paris office…

Here’s the full text of Fitch Ratings’ one-notch French downgrade, which makes it the last of the big three agencies to remove AAA ratings from France. A key bit of the rationale:

Fitch now forecasts general government gross debt (GGGD) to peak higher at 96% of GDP in 2014 and decline only gradually over the long term, remaining at 92% in 2017. This compares with Fitch’s previous projections in December 2012 of GGGD peaking at 94% (and 92% when it first revised the Outlook to Negative in December 2011), and declining more rapidly to below 90% by 2017…

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Alphachat: Michael Pettis edition (well, the second one)

In this edition of Alphachat, Michael Pettis, Professor of Finance at Peking University and the original Alphachat guest, joined Cardiff, Kate and David to discuss China and its apparent drive to reorient the economy.

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Markets Live: Friday, 12th July, 2013

Live markets commentary from 

The (early) Lunch Wrap

Defining the business of banking || The Fed’s credibility and future promises || 6.5% growth in China? So what? || Schneider approaches Invensys on potential takeover || G4S faces fraud probe over tagging contracts || Transatlantic swaps deal averts market crunch || Market’s wrap || FTAV’s latest Read more

China growth of 6.5%? Um, not a problem!

Well, not a problem apart from all that confusion that arises when a senior Chinese official apparently contradicts official GDP targets and expectations…

Chinese Finance Minister Lou Jiwei said a 6.5 percent economic-growth rate wouldn’t be a “big problem,” signaling the government may tolerate a slower pace of expansion than officials have previously indicated.

That’s from Bloomberg, and Lou made the comments at a press conference in Washington, so he knew it would be picked up by the western media. Xinhua also has a report that paraphrases Lou as saying he expects 7 per cent growth this year. (The official target, remember, is 7.5 per cent). Read more

Further reading

Elsewhere on Friday,

– It’s a trade cycle, not a business cycle.

– Stop the link hoarding madness!!!

– Why you’ll probably hear more about basic income. Read more

The 6am Cut London

Asian stocks mostly higher || Half public Lloyds stake could be earmarked for retail || China accuses GSK of ‘huge’ price scheme || Schneider Electric talks of £3.3bn bid for Invensys || China’s finance minister talks of 6.5% growth || Singapore grew at 15.2% in Q2 || Swiss deal on US tax cheats nears || BP is now a registered derivatives dealer  Read more