Posts from Wednesday Jul 31 2013

The Closer


– China RMB internationalisation debate hosted by Euromoney. Read more

FOMC statement, 31 July 2013

The tweet-length translation of Wednesday’s FOMC statement:

“Sorry, but we’re saving any juicy taper-hint deets for the minutes, and otherwise we’ll see you in September.”

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Goldman explains concept of queueing

When a lot of customers want to get their property out of the warehouse at the same time, a line forms…

Although Goldman is ready to swap you if you don’t like queueing in the LME warehouse system. Statement’s here. This is how it ends: Read more


Much excitement on Wednesday on alleged news (via CNBC) that George Soros has taken a big stake in the much discussed food supplement business Herbalife. Here’s the auto-update chart on Wednesday. At pixel the price was up 7.9 per cent at $64.70.

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Floating Treasuries, finally

If you really, really want to see the US Treasury’s final rule on its issue of floating rate notes (from the beginning of next year, using 13-week T-bills as a reference rate) — here.

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To catch an iron ore thief

Nicholas Colas at Convergex offers some interesting insights on diamond deflation in his Wednesday note.

First, he points out that the Cannes diamond heist was not necessarily the most cunning economic crime of all time, since diamond prices are under pressure at the moment — mainly due to a fall in Chinese and Indian demand. Moreover, diamond prices have a lot in common with their base metal counterparts (his emphasis): Read more

Those US GDP revisions…

This is what $560bn or so of newly-discovered US economic output looks like.

Yes it’s the latest BEA estimates/revisions of US GDP.

They’re out — and with 1.7 per cent growth in 2013’s second quarter, and 2012 growth revised up to 2.8 per cent from 2.2 per cent at the last estimate, they’re fairly good. Read more

The great pornwall of Britain

Pints, royals, strawberries and cream, bulldogs, cricket, fry-ups, football hooligans, and porn filters. All things British. The last item on the list being a recent arrival announced by Prime Minister David Cameron in a speech last week.

The filters will require an active selection to be able to view porn — plus anything that gets misidentified as porn — on one’s home internet connection.

Now, given that many Brits seem barely able flirt without the aid of alcohol (sorry!), one wonders exactly how many people will go to the trouble of getting the filters removed… but allow FT Alphaville to note that we kinda put “porn” in at least a couple of headlines over the last year. Just FYI. Read more

Markets Live: Wednesday, 31th July, 2013

Live markets commentary from 

The (early) Lunch Wrap

SEC charges former Santander exec and judge with insider trading || EADS to be renamed Airbus || BoE helped sell looted Nazi gold || Tourre trial told of ‘land of make believe’ || Global fertiliser shake-up after cartel falls apart || EU unemployment rate falls || JPMorgan to pay $410m to settle power probe || Schneider Electric to acquire Invensys for £3.4bn || Markets Read more

Time to rebuild dollar longs?

Here’s a chart that caught our eye on Wednesday morning (click to enlarge):

It comes via George Saravelos at Deutsche Bank and shows the surge in short-term flows. Read more

Further reading

Elsewhere on Wednesday,

– The real cost of sitting on cash.

– Winning the Afghan War with a new Silk Road.

– What is the payment structure of gold? Read more

A guide to the conceptual US GDP changes

The BEA’s comprehensive benchmark revisions to the national income and product accounts will be released later today, and they’ll include the major conceptual changes announced earlier this year.

If you want a straightforward summary of the changes and how they matter, we recommend Robin Harding’s piece from Monday. (And remember that the annual benchmark revisions, also to be released today, will affect numbers going back to 2010. Look for GDP and GDI, which had diverged markedly in the year through the end of Q1, to be revised towards each other.) Read more

The London 6am Cut

SEC charges former Santander exec and judge with insider trading: “US securities regulators brought a new round of cases of alleged insider trading ahead of BHP Billiton’s failed bid for PotashCorp, filing fraud charges against a former high-ranking executive at Banco Santander and a former Spanish judge. The Securities and Exchange Commission sued Cedric Cañas Maillard, a Spanish citizen and former executive adviser to Santander’s chief executive, and his friend Julio Marín Ugedo, a former judge in Spain, for allegedly making a total of $1m in illegal profits after trading in advance of the planned 2010 take.” (Financial Times)

BoE helped sell looted Nazi gold: “The Bank of England played a vital role in one of the darkest episodes in central banking history, facilitating the sale of gold looted by the Nazis after their invasion of Czechoslovakia in 1939. According to a hitherto unpublished history of the BoE’s activities in and around the second world war, the UK’s central bank sold gold on behalf of the Reichsbank – which Germany’s central bank had seized from its Czech counterpart – after the UK government had frozen all Czech assets held in Britain following the Nazi invasion.” (Financial TimesRead more