Posts from Tuesday Sep 10 2013

The Closer


– The economic costs of cashRead more

Repossessed at One Hyde Park: the Irish connection

There was just one detail missing from the exquisite tale of the repossessed flat now on offer at London’s most hideous luxurious residence. The owner.

Well — after perusing this “exciting opportunity” to own 988 sq ft of One Hyde Park — note the apartment number… Read more

Mercado Livre stock dances to a strange (earnings) beat

By the FT’s Joe Leahy and Arash Massoudi

Try to buy something on the internet in Brazil – tools, car seats for babies, cellphone covers – and one of the first sites to pop up will inevitably be Mercado Livre. Read more

Markets Live: Tuesday, 10th September, 2013

Live markets commentary from 

China is growing faster, again, in the same old ways

Chinese macro data have been on a good run recently. Today’s release of August industrial production was particularly strong, beating consensus forecasts by a relatively wide margin, although not in a way that bodes especially well for long-term growth sustainability.

Here’s a summary of key data published today, courtesy of BAML: Read more

The (early) Lunch Wrap

Obama to halt attack if Syria destroys chemical weapons || Glencore Xstrata lifts cost-cutting target to $2bn || UK chancellor Osborne claims austerity victory || Twitter makes its largest acquisition to date || Deutsche Bank in Tokyo anti-bribery probe || Verizon to sell a combination of fixed and floating-rate debt || Mining group Bumi’s split from Indonesia’s Bakrie family delayed again || Interdealer broker ICAP closes in on settlement over Libor claims || Foreign firms turn to FX swaps to fund Chinese operations || Nine of Europe’s biggest utilities joined forces in warning to EU || Hybrid cars boost Toyota || Koch Industries to buy Molex || Markets  Read more

The growing scarcity of scarce markets

As we’ve reported, a classic car bubble is potentially in the making — something which has got us thinking (over three posts) about what really goes into determining the value of rare objects more generally.

From our vantage point — and it certainly is a lay vantage point when it comes to classic cars — there seem to be three core attributes associated with vintage automobiles.

The first is uniqueness.

Value related to uniqueness is understandable since it relates to how easily an object or item can be sourced, replicated or mass produced. For now, there is little chance that a classic Bentley will be perfectly replicated. Value applied on these grounds seems rational enough. Read more

The art of myth-making

The classic car market is bubbling, which has got FT Alphaville wondering about what really goes into determining the value of rare objects. More specifically why certain objects, despite their ability to be cheaply reproduced, retain value regardless.

In this post, we consider the roles of narrative and myth in value creation.

We’ll start with the argument that a powerful enough narrative or myth can turn even abundant commodities into stores of value in their own right. Read more

A classic car bubble?

Wonkblog and Reuters draw our attention to a potential bubble arising in classic cars.

Both cite research from Knight Frank’s Q2, 2013, luxury investment index.

As KF’s research noted:

Continued price growth in the classic car sector and an upturn in the performance of investment-grade wines helped to boost the value of KFLII by 7% in the 12 months to the end of June 2013. This matches the increase in the value of residential property in prime central London over the same period and is in stark contrast to the 23% fall in the price of gold since June 2012. The FTSE 100 index of UK listed equities performed slightly better, rising by 12%. Over a 10-year period, however, KFLII (+174%), has significantly outperformed the FTSE 100 (+55%), although gold still remains the top mainstream-asset performer (+273%).

 Read more

Further reading

Elsewhere on Tuesday,

– Sensitive brogrammer unfairly misunderstood.

Demographics and inflation and owning up to errors.

Surplus energy grows babies. Discuss. Read more

The 6am London Cut

Markets: Asian stocks rose, extending the longest rally in the benchmark equity gauge this year, and the Thai baht and Malaysian ringgit climbed before Chinese factory output and retail sales data expected to show growth in August. Crude oil slipped for a second day and credit risk fell. (Bloomberg) (Financial TimesRead more