Posts from Thursday Oct 24 2013

The Closer

FURTHER FURTHER READING

- Nick Summers on why Jamie Dimon is a colossus no more. Read more

Does this stock need medicating?

It’s Shire, of course, reacting to a warning of better than expected earnings. The stock was up 8.7 per cent at 2744p at pixel. Read more

A managed futures smackback to the Bloomberg takedown

Hackles were raised across the managed futures industry this month by a Bloomberg exposé of high fees and poor performance. (One we used to riff on diversification as the asset management bait and switch).

Attain Capital has taken to its blog to respond. You can read their extensive and detailed response, including rebuffs from the editors of Op-Ed pages here, but we thought we would summarise the main points and then add a few of our own below. Read more

The illustrated Icahn

Doesn’t seem very value-creating for “Your Company” to put their corporate treasury outside the castle where the filthy peasants can get it, or indeed to devote capex to a castle when they have access to advanced technology like corporate jets. No wonder Carl Icahn is on their caseRead more

Phroth

The global personalisation technology company, Phorm, has caught our eye again, not least because the stock was up…er…69 per cent at pixel…

The excitement can be pinned on this: Read more

A Finnish collateral coda

Months after the Finnish government was made to open up its Greek bailout ‘collateral’ deal to public scrutiny, one of the weirder episodes of official secrecy in the eurozone crisis …

Finland’s Chancellor of Justice, Jaakko Jonkka, has criticised the decision to keep the Greek transaction under wraps in the first place: Read more

The FTC is standing in a shrinking circle of grey

Up until now the FTC has been the ghost in the machine as the debate about Herbalife’s business model has raged. Often invoked and implored, the direct seller’s share price has in many ways been a referendum on any ultimate action or inaction from the regulator.

However, the debate has expanded beyond Herbalife to look at practices across the whole direct sales industry, and pressure is rising on the FTC to pick a side.

Indeed, on Thursday a significant coalition of consumer activists, economists, lawyers, entrepreneurs and former participants in mutli-level marketing programmes will submit a petition to the Federal Trade Commission calling on it to take enforcement action and set new rules for the industry. Read more

Warehouse queue conflicts

The Wall Street Journal has been digging deeper into the metals warehouse logjam issue, and discovered that both Alcoa and Rusal may be beneficiaries of the situation due to the physical premiums they collect when end-users are forced to go direct to producers for metal so as to avoid queues.

According to the WSJ the aluminium makers have reaped as much as $1.4bn in revenues from higher fees due to the logjam.

The story then suggests this strips the credibility from their objections to proposed LME rules to ease the bottleneck. Read more

Markets Live: Thursday, 24th October, 2013

Live markets commentary from FT.com 

The (early) Lunch Wrap

Credit Suisse to overhaul interest rates trading business || Pinterest value leaps 52% to $3.8bn || UK peer-to-peer lender targets the US || US Congress moves to tighten money laundering laws || US jury rules against BoA in mortgage trial || Draghi warns that some European banks need to fail a series of ECB health checks || UK car output tops 1.5m for first time since 2008 || Alcoa and Rusal Are beneficiaries of warehouse logjam || Angela Merkel’s mobile phone may have been the target of US surveillance || Markets Read more

These houses aren’t bear traps, US optimism du jour [Update]

Two charts to nurture some hope this morning.

First, a reminder that when long established trends turn, they can do so very quickly. And second, if there is a real turn in the US, there is plenty of scope for activity to pick up. Read more

Paddling in the shallows of Shibor creek

The muddy waters of this particular creek have been known to drive good men mad…

From the FT:

The seven-day bond repurchase rate, a key gauge of short-term liquidity in China, opened at 5 per cent, a four-month high and up 150 basis points from the end of last week.

But we also get this: Read more

Further Reading

Elsewhere on Thursday,

- A very expensive tea party.

- About that whole shift to part-time work.

- What is wrong with the USA? Spoiler: maybe the mediaRead more

The 6am London Cut

Markets: Australian equities were outperforming in an otherwise gloomy session in the Asia-Pacific region. (Financial TimesRead more