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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
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.
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
Live markets commentary from FT.com
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
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
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
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 Times) Read more