Posts from Friday Oct 11 2013

Argentina tries to settle with holdouts. Not those ones though.

Beyond the Supreme Court, Judge Griesa, and Elliott Associates’ own (rather remarkable) media offensive telling Argentina to talk before the pari passu screws turn…

It comes down to the Republic’s own incentives to settle. Especially when it’s been such a “uniquely recalcitrant” debtor for so long.

And so — while it might seem a long way from the pari passu saga — we’re interested in this week’s news (via Ambito) that Argentina wants to pay $500m (in bonds) to settle with five companies and get them to stop suing it through ICSID, the World Bank’s investment arbitration tribunal…

Change in the air? Change which might spread to NML v Argentina? Read more

Why China may not be over-investing

Here’s a refreshingly different view on China, courtesy of Karen Ward, senior global economist at HSBC.

Her key point: it’s not that China is necessarily over-investing (as is frequently argued) but that the rest of EM may be under investing. Read more

“That’s new information…That’s totally new information!”

That’s Larry Kudlow, seizing on the words of Vice Chair of the House Republican Conference Lynn Jenkins on Friday while discussing negotiations to re-open the US government.

Fair? Judge for yourself…

 Read more

Sticky Fingerprints (updated)

*CISION: RECEIVED FINGERPRINT RELEASE FROM CONTACT AT FINGERPRINT

That would be the release announcing a $650m acquisition of Fingerprint Cards by Samsung, which – regrettably – has turned out to be completely made-up, and possibly a matter for the Swedish authorities. Read more

Markets Live: Friday, 11th October, 2013

Live markets commentary from FT.com 

The (early) Lunch Wrap

Hopes rise of averting US debt default || US rethinks how to release sensitive economic data || US moves to enforce $470m Barclays energy prices fine || Carmen Segarra is suing the New York Fed || BlackBerry co-founders explore bid || Google funnelled €8.8bn of royalty payments to Bermuda last year || Regency Energy agrees to purchase PVR Partners for $5.6bn || A pipeline owned by Tesoro Logistics has leaked || Infosys missed estimates || Top global hedge fund Brevan Howard takes emerging markets hit || Markets Read more

Why the level of government debt may not matter

The following is the conclusion from an NBER paper by Anmol Bhandari, David Evans, Mikhail Golosov and Thomas J. Sargent. Published in September, it looked at the relationship between taxes, debts and wealth transfers, and how economic context effects them.

In other words, when it can, or cannot, be helpful to run high debt. Read more

Step one in zombie prevention: pants on

Common Sense Investment Management has not joined the ranks of the walking dead, quite yet.

However, the fund of hedge funds — which until August managed $3.2bn — has seen investors pull 90 per cent of assets since the firm’s founder was arrested in connection to a prostitution sting, according to CNBCRead more

As an entire country of Postpeople dance up the front path

Royal Mail off to a good start. Initial trading on Friday a good third above the offer price.

Further reading

Elsewhere on Friday,

- So much Ferguson. Do consume responsiblyRead more

The 6am London Cut

Markets: Asian markets were on the rise amid hopes the White House and the Republicans are finally nearing a deal to lift the US debt ceiling and avoid a potential technical default by the world’s largest economy. (Financial TimesRead more