Posts from Monday Oct 14 2013

The Closer


– The San Francisco exodusRead more

Guest post: The real fissure

Alexander Friedman, global chief investment officer of UBS AG, and his colleague Kiran Ganesh, cross asset strategist at UBS Wealth Management, share their thoughts on the core issues behind the Washington impasse. For reference, Friedman is American and oversees $1.7 trillion in managed assets…

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Magnitsky, the libel courts, and sanctions

On 16 November 2009 Sergei Magnitsky died in prison in Russia. Shortly before his arrest and imprisonment he had been investigating a substantial tax fraud committed against the Russian Federation by a criminal gang. I shall refer to this tax fraud as the Hermitage Fund fraud.

Beyond this short summary, many of the facts in issue between the parties are unknown or controversial, and are subject to stark divisions of opinion…

So began Mr Justice Simon’s judgment in Pavel Karpov v William Felix Browder & Hermitage Capital Management Limited & others on Monday. And the rest is very much worth reading. Read more

The prize-winning property Shiller

Congratulations Professor Shiller (and Profs Fama and Hansen)!

Let’s celebrate with a quick return to the property market, where he who would not be bullish made his name, in the popular imagination at least. Read more

The intrinsic (intractable?) bank bid for sovereign debt

There are a few ways to greet the news that eurozone banks are more exposed to their sovereigns than ever. One’s to note that this just means more human shields to deal with (somehow) in a restructuring… Read more

Breathless, branchless banking, Russian style

We should welcome TCS Group Holding to London — the latest Russian firm to take advantage of our attractive Global Depository Receipts regime, which allows a company to describe itself as “London listed” without adhering to all those tiresome governance codes and disclosures that come with a regular full listing.

TCS — better known as Tinkoff Credit Systems or simply TCS Bank — is the creation of Oleg Tinkov, who sounds like a lively chap. He made his first fortune by taking Russian brewing upmarket, before selling out to Inbev in 2005 and then moving into retail financial services in earnest. Read more

That’s my answer and if you don’t like it… well, I have others, Herbalife edition

Who are Herbalife’s customers?

A fair question, yes. An innocent one, not at all. And answers came there… well many, actually. Read more

“For their empirical analysis of asset prices…”

Yes — 2013’s Sveriges Riksbank Prize in Economic Sciences will be shared by Eugene Fama, Lars Peter Hansen and Robert Shiller… Shiller and Fama. Hmm. A prize for everything from short-term stock price fluctuations, to the origins of index funds, to stock-picking, to behavioural finance.

Here’s the full Scientific Background doc anyway. (Click to enlarge) Read more

Markets Live: Monday, 14th October, 2013

Live markets commentary from 

The (early) Lunch Wrap

Senate takes over US budget negotiations || Lloyds warns of Help to Buy bubble || Twitter squeezes banks on IPO || Higher vegetable prices helped fuel Chinese inflation || Gulf oil production hits record || Europe’s financial institutions are more exposed to their domestic government bonds || Netflix pursues cable-TV deals || Urals Energy receives cash bid || Markets ||  Read more

Inflation in China: veg now, pork later

On the danger or not of China’s inflation rate:

 Read more

Further reading

Elsewhere on Monday,

Smoking for a living.

– A de-Americanized world please.

– Over the counter muggingsRead more

The 6am London Cut

Markets: Trading in markets across Asia was fairly muted as the stand-off continued in Washingtonover budget cuts and raising the US debt ceiling. Even though there are just a few days until the October 17 deadline when the Treasury has said the US will run out of cash to pay its bills, markets in Asian nations dependent on external trade, while under pressure, have remained relatively calm. (Financial TimesRead more