Posts from Thursday Jul 18 2013

The Closer


– Macro Man on the market torporRead more

Welcome to Chapter 9, Detroit

Here’s the City of Detroit’s filing to become the largest ever US city bankruptcy, filed late Thursday (seemingly timed to trigger a stay on imminent lawsuits by creditors). Beyond the list of derelict buildings and brownfield sites owned by the city — you’ll want to read the approval letter by Michigan Governor Rick Snyder, in Exhibit A. Read more

A shadow banking map

We think we’ve got this piece of artwork from the New York Fed the right way up. But we can’t be sure…

 Read more

Art as the sophisticated man’s Bitcoin

There’s a post FT Alphaville has been trying to write about the art market for a while now. At least a year. Problem is, nobody will talk honestly about the angle we want to discuss.

That being: how much art is being “mined” purely to satisfy the demand for ‘safe-ish’ assets in a liquidity saturated world. Safe assets, which we should add, are often held in bonded warehouses in places like Geneva, outside of the reach of tax authorities, and which later become a type of bearer security in their own right as the depository receipts which allow redemption of the assets begin to circle amongst the wealthy as their own type of non-taxable currency. Read more

Annals of retention and the ECB

Should peripheral banks like the latest ECB collateral moves?

As the FT’s Michael Steen reports, the central bank will now accept “ABS with a lower credit rating and at a lower haircut” than it had done previously, going below the previous triple-A minimum. It could mean another €20bn of collateral eligible to post at the ECB for funding, Steen notes.

But there’s something else… Read more

How the mighty have fallen: EM edition

Today, the combined market capitalization of Wells Fargo and JP Morgan ($440bn) exceeds that of every Energy and Materials company in Brazil, Russia, India and China ($420bn). Less than three years ago, those two banks were valued at less than half the market cap of the BRIC commodity sectors, indicating how quickly market leadership has rotated away from China to the US real estate story.

That’s from BofAML Michael Hartnett’s latest Thundering Word which runs through the bull and bear case for EM. A taste Read more

Markets Live: Thursday, 18th July, 2013

Live markets commentary from 

The (early) Lunch Wrap

Russian opposition leader Navalny sentenced to 5 years in prison camp || JP Morgan in talks over power price settlement worth hundreds of millions || Greece agrees deal to reform civil service || Troika report warns of more uncertainty on Greek debt servicing || Schäuble flies to Athens with SME loans || Intel has cut its financial forecasts for the rest of the year || China’s June new home prices rose in all but one city || Peltz urges PepsiCo to buy Mondelez || Cowdery in $600m deal for US insurer || Dell’s special committee of the board is considering delaying the July 18 shareholder vote || China bans GSK finance chief from leaving || Junk bond yields are falling fast || Markets wrap || FTAV’s latest Read more

Further reading

Elsewhere on Thursday,

– Jeff plans to go ex-Sky.

– On the passing of The Oil Drum.

– Bank earnings as a demand leakageRead more

The 6am Cut London

Japan shares higher || Big JPMorgan energy trading settlement || Schäuble flies to Athens || IBM beats; Intel and Ebay lower outlook || China bans GSK finance chief from leaving || Junk bond yields are falling fast || Chinese house prices rose in June || Analysing Bernanke Read more