Posts from Friday Oct 18 2013

Xmas arrives earlier at Exane (updated)

Brace yourself.

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Weekender

Further weekend reading:

- Game-changing investments for the US. Read more

The banks are OK? Debt issuance edition

Friday bank chart time, and as we like ambiguous messages, lets look at debt issuance by the Giips — banks across Greece, Italy, Ireland, Portugal and Spain.

The good news is that it is up a lot so far this year, $7bn or a hefty 16 per cent rise on the same period last year. Whooo.

The bad news is that it is still down a lot compared to, say, the same period in any of the preceding six years. Hoooo dear. Read more

Are most American equity investors secret chartists?

Just asking, cos…

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The paradox of gold commentary

Compare and contrast the following from a note by GoldMoney’s head of research Alasdair Macleod that landed in the collective hands of FT Alphaville on Friday.

Here’s the original version: Read more

Europe’s not so secret liquidity. Not any more.

FT Alphaville began writing in detail about emergency liquidity assistance in the eurozone — that is, national central banks lending to stricken, but supposedly solvent banks on highly secretive terms, against collateral not accepted at the ECB — some two and a half years ago.

Throughout that period, the ECB’s precise oversight of this liquidity assistance remained in the dark. Despite the risk being taken by taxpayers, and despite the fact ELA effectively stopped the Greek, Irish and Cypriot banking systems from going under at various points. And despite procedures having been in place since 1999 for the ECB to restrict ELA by a national central bank if it endangers the rules of the euro (as used in Cyprus). Read more

Rajan rupee metaphor/ lesson du jour

To be added to the growing collection of central bank educational tools… Frankly, this isn’t a patch on the ECB’s Top Floor or the BoE’s Monetary Policy Balloon (and I won’t even bother comparing it to Inflation Island, a giant of the genre) but, tbf, the RBI probably has less resources to throw at its gaming division.

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Markets Live: Friday, 18th October, 2013

Live markets commentary from FT.com 

The (early) Lunch Wrap

China reverses first-half slowdown || Google well placed as mobile revolution takes hold || BoE’s Tucker warns on shadow banking risk || UK vinyl sales at highest level in a decade || Goldman fixed income trading worst in class || WSJ ordered not to divulge Libor names || Markets Read more

Concerned Californians call on Attorney General to look at Herbalife [update]

Fancy that. We were only just discussing the powers available to the Californian authorities to look at Herbalife the other day. And then we woke up to this press release:

New coalition seeks AG Kamala Harris and Santa Cruz DA Bob Lee’s assistance to investigate Herbalife’s pyramid scheme targeting the Latino community. Read more

Of refining margins and policy mismatches

A tale of Reliance. Or of cracks. Or of regulation. Take your pick but this is simply pointing out that global refining margins are still in the doldrums (with recent GRMs low even by post-2008 standards) and that Europe’s refiners are likely to take the biggest kicking. Read more

Who let the regulatory clowns out? (Updated)

This post has been substantially revised in the wake of an internal discussion here at the FT…

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Close readers will recall that just earlier this week we were pondering the case of one Richard Usher, formerly chief FX dealer for JP Morgan in London. His mangled remains were found under the proverbial publicity bus that is the official regulatory investigation into the supposed fixing of the daily WM/Reuters forex price fix, which is currently underway on both sides of the Atlantic. It seemed a shame to us that someone had been executed, professionally, for simply being in possession of an alleged Skype chat, therein containing some colourful banter. Especially when no evidence of said Skype chat had yet been presented.

It looked to us like someone, almost certainly in regulatory circles, was trading Usher’s name for political gain.

But now we’re confused. Read more

Post-deal optimism

It’s wise to be cautious whenever Wall Street strategists play political prognosticators, but these points from Barclays about the recent deal to lift the debt ceiling and reopen the government seem sensible enough, if a bit more sanguine than is warranted:

One key lesson is that the debt limit is out of bounds. In August 2011 and in the latest stand-off, the two parties did come to an agreement to raise the debt limit before the Treasury’s stated deadline, even though the Treasury had enough cash to operate for days after that. Hence, the market and Fed are less likely to worry about a new debt limit crisis. Even if they do, the next deadline may be many months after February 7. Read more

Further reading

Elsewhere on Friday,

- Tbf, punching an octopus to death was always going to be a PR disaster.

- A scientist who claims that philosophy is dead and science has killed it is a fool.

- European energy fact of the day. Read more

The 6am London Cut

Markets: Accelerating economic growth in China coupled with a fresh all-time high for the S&P 500 brightened sentiment across the Asia-Pacific region. (Financial TimesRead more