Posts from Thursday Jul 25 2013

The Closer


– A few (largely optimistic) comments on new home sales.  Read more

Larry Summers on QE

The FT’s Robin Harding with the scoop:

Lawrence Summers made dismissive remarks about the effectiveness of quantitative easing at a conference in April, raising the possibility of a big shift in US monetary policy if he becomes chairman of the Federal Reserve. Read more

SAC, the reckoning

From the criminal indictment just filed in a Manhattan court, charging four SAC Capital corporate entities with responsibility for insider trading conducted at “various times between in or about 1999 through at least in or about 2010″… Read more

Markets Live: Thursday, 25th July, 2013

Live markets commentary from 

The (early) Lunch Wrap

Bo Xilai was charged today with several counts of corruption and abuse of office || RBS is weighs dispensing its freestanding investment banking operation || The UK economy grows 0.6 per cent || South Korea GDP rises 1.1% || Barclays close to securing 2014 capital deadline || Euro Zone holds off on payment to Greece || US regulators’ muni case setback by UBS sentencing || ‘Fabulous Fab’ takes to witness stand || Google announced a $35 streaming TV device || Failed ETF trades surge || China announces a ‘mini-stimulus’ || Facebook beats Read more

The QE repo distortion is uncharted territory for funding markets

Scott Skyrm noted on his blog earlier this week that it took only six months of Fed QE purchases to move GC rates from an average of 0.24 per cent in December 2012 to an average of 0.05 per cent this month.

There is, consequently, a growing distortion in the short-term funding markets, which is clearly one of the first unintended consequences of the QE programmes to surface: Read more

Further reading

Elsewhere on Thursday,

– Anatomy of a bank run.

– Gold backwardation conspiracy nonsense.

– Digging deeper into multi-level-marketing schemes. Read more

The 6am Cut London

Asian stocks fall || Bo Xilai charged || UK GDP today || RBS may integrate investment banking with corporate || South Korean GDP beats || Barclays nearing 2014 leverage ratio deal || Facebook Q2 beats || Eurozone delays Greece payment decision || ETF trade fails rise || China’s ‘mini-stimulus’  Read more