Posts from Thursday Sep 12 2013

Compliant Twits, or…


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The Closer


– Why Michael Woodford thinks the Fed should taper. Read more

US multifactor productivity growth, charted, prognosticated

The chart comes via Michael Mandel’s new paper.

As always with productivity growth numbers, the usual caveats about residual measures apply. That goes double for multifactor productivity growth, aka total factor productivity growth, which is a residual of a residual. Read more

Fed Presidents are not going to let Money Market Funds off the hook

A letter lands from the 12 Presidents of the Federal Reserve, led by consistent money market fund critic Eric Rosengren. Reform has been a marathon and they are going to run along behind the SEC waving a big stick until it is finished: Read more

A gold surplus + no more Indian buying = ?

From a SocGen note earlier last week:

ETF disinvestment more than accounted for the net change in jewellery+investment demand. When all the elements of supply and demand are taken together, the gold market registered a surplus of 217 tonnes in H1 2013 against a small surplus of just 37 tonnes in H1 2012. Read more

Was Verizon paying the price for Apple?

Or simply giving money away?

There was much hoopla late on Wednesday as Verizon got the world’s largest corporate bond sale away — some $49bn of paper which will help to buy the rump of Verizon Wireless back from Vodafone.

Here’s a little table from Marc Ostwald of Monument Securities that hints at the excessive premium offered by Verizon, along with the instant profits on offer to investors here: Read more

Markets Live: Thursday, 12th September, 2013

Live markets commentary from 

The (early) Lunch Wrap

Alcoa vs the LME, on warehousing / UK says it will float Royal Mail in weeks / Ackermann set to step down from another posting / KPN and America Movil still in talks  Read more

Alcoa on “low risk financiers” and parallel metal markets

Alcoa, one of the world’s largest aluminium producers, has come out against the LME’s proposed new rules for dealing with warehouse queues.

In a letter to the LME, Alcoa’s president for materials management Tim Reyes states the plans are “counter productive” and designed to address what the company feels is a “red herring”. Read more

Further reading

Elsewhere on Thursday,

– India’s Rajan tells everyone to chill out.

– Paper money is killing the economy, but so is central bank conservatism.

– In defence of economicsRead more

The 6am London Cut

Markets: Asia’s benchmark stock index swung between gains and losses after Japanese machinery orders accelerated less than expected and as investors await the outcome of the Federal Reserve’s meeting next week. (Bloomberg) (Financial TimesRead more