Posts from Thursday May 1 2014

The Closer


– A GDP chart that demands attention. Read more

Guest post: The SEC could find new uses for an old law

It is probably too late to change the number of individuals charged in relation to the financial crisis, even if US regulators reconsider their treatment of offending corporations, but there may be a route to more aggressive enforcement by dusting off a little used part of a 1934 statute. Jordan Thomas, a former SEC Enforcement Director and chairman of the whistleblower representation practice at Labaton Sucharow, outlines a way the Commission could go after malign managers in the future.

Since the Financial Crisis, the Securities and Exchange Commission has been criticized for not holding senior executives accountable for corporate wrongdoing. But Wall Street’s top cop has now signaled that it will begin using a statute that has been off the radar for decades to pursue charges against parties who violate the securities laws “through or by means of any other person.” Read more

Safe as houses, and perfectly priced

Some expansive credit-related thoughts arrive from Alberto Gallo at RBS, for a quiet May Day when Europe’s capitalists take the day off in honour of its workers.

In short, its the safe stuff that may not be safe anymore as/if/when the continent’s economy expands: Read more

So, you thought London house prices were barmy…

Goldman Sachs has had a look attempts to lean against house price cycles by central banks, in 20 OECD countries from 1990 to 2012, to see what effect they have had.

More on that below, but first a striking chart of post-Great Recession house price trends (from the first quarter of 2009 to now):

 Read more

It’s Mostly Fiscal, Ukraine edition

The currency devaluation and official borrowing (to help finance a still-wide government deficit) are expected to push public sector debt up to 57 percent of GDP…

IMF announcement of $17bn loan programme for Ukraine

Although don’t worry — that’s a whole 3 per cent before a unique debt threshold clause conceivably allows the Russian government to convert $3bn of Ukrainian bonds, which it owns, into demand money. Read more

Markets Live: Thursday, 1st May, 2014

Live markets commentary from 

The (early) Lunch Wrap

Fed sees spring rebound and tapers again by another $10bn to $45bn-a-month || UK house price growth hits double digits || The IMF signed off on a $17bn rescue package for Ukraine || China’s purchasing managers index for April rose a touch to a reading of 50.4 from 50.3 in March || UK’s Co-op to sue former directors and advisers || Lazard makes £8m profit in Royal Mail share sell-off || Rio Tinto is suing Vale and BSG Resources || Booming output sends US crude below $100 for the first time in almost a month || Markets Read more

April returns: Russia, Greece, bleh

Here’s a quick update on returns in April and the year so far, courtesy of Jim Reid at Deutsche Bank.

A few surprises: British stocks were the place to be in April, while Greek shares did worse than Russian shares – at least in local currency terms. (Click chart to enlarge)

April asset returns  Read more

Further reading

Elsewhere on Thursday,

– Telling both sides of the equality debate what they don’t want to hear.

Sell in May, etc.

– Yelp is not TwitterRead more

The 6am London Cut

Markets: Most Asian markets were closed for a holiday, though Japanese equities marched ahead, with the Nikkei 225 average gaining 0.7 per cent and the wider Topix advancing 1 per cent. The upward moves followed the after-the-bell release of mixed earnings statements from several Japanese banks and airlines on Thursday. (FT’s Global Markets OverviewRead more