Posts from Tuesday May 6 2014

The Closer


– Billionaire hedgies made money the old-fasioned wayRead more

About that AstraZeneca bid defence …

The nationalistic bluster around AstraPfizica remains blustery. Here, for example, is London Mayor Boris Johnson:

It would be very important to establish that Pfizer is genuinely committed to R&D in this country. I believe in principle that we should have an open system of markets in this country, but when I look at something like AstraZeneca and I look at an organization of that scale, of its relative importance to the UK economy, the sheer percentage of its money that goes into R&D, I think it is of great importance to Britain.

With that in mind, it’s worth taking a closer look at the experimental drug pipeline AstraZeneca has highlighted in its defence statement. These are the drugs that management expects to deliver an incremental $19bn of sales from 2017 to 2023, equivalent to 10 per cent revenue growth per annum: Read more

The Fed’s riposte on short v long-term unemployment

Cross-posted from Money Supply

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Something in the wind

We are going to try something different. In London, on the second of July, which you may want to keep clear of appointments.

Updates to follow.

Pfizer and an eminent reputation

Pfizer, the US drugs giant that would like to buy the UK listed AstraZeneca, has promised that it would keep at least a fifth of the enlarged group’s research and development in the UK for five years if it did so, part of a spirited row over the public interest, and one that has prompted MPs to summon executives to a Business Committee hearing at the House of Commons.

Away from questions about the strategic value of a large and half-Swedish pharmaceutical company, the whole idea of corporate assurances of the non-binding contractual variety is an interesting subject, and one where Pfizer has some history, albeit in somewhat different circumstances. Read more

China’s leaning towers

We are now fairly sure there is a serious mismatch between the supply of and demand for charts about China property — more are being produced than will ever be seen. That said, here are a few worth paying attention to:

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Markets Live: Tuesday, 6th May, 2014

Live markets commentary from 

Oh the thinks you can think

Bank of America Merrill Lynch strategist Michael Hartnett has offered a call to arms to thematic thinkers everywhere.

Invoking Dr Seuss he, well, judge for yourself:

In the next 40 years, the world will run out of oil. In the next 10 years, a laptop will communicate faster than a human brain. In the next 10 days, 112,000 people will retire in the US, Japan and Europe. Today, 56% of the world economy has zero interest rate policies. Tomorrow, there will be over 3.3 billion searches on Google. And in the next 10 seconds, the US national debt will rise by $322,000. Cyclical and secular trends are transforming at a fast and meaningful pace.

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The (early) Lunch Wrap

UBS plans special dividend as part of legal structure overhaul || Saab offers Swiss business deals in vote over Gripen jet fighter || Barclays to lose senior US tech banker || BMW beats profit expectations fuelled by demand in China || France to oppose GE’s $13.5bn Alstom deal || Zoopla revenues ride UK property boom || Balfour Beatty chief quits after fresh warning || Markets Read more

US labour market slack: the difficulty with “structural” vs “cyclical” labels

The uncertainty about the extent of US labour market slack continues, and last week’s employment situation report certainly didn’t clarify the issue. Read more

“The urge to merge meets the dash for trash”

That’s the title of the latest from Matt King, one of the credit strategists we dubbed “bearullish” earlier this year.

King is short-term bullish on credit but, in his own words, “for all the wrong reasons”. He believes that the combination of the remarkably supportive liquidity environment of the past few years and the lack of better alternatives will remain in place for a while — even as credit fundamentals keep deteriorating and valuations become less and less attractive. Read more

Further reading

Elsewhere on Tuesday,

Nah, corporations don’t exist only to serve the interests of shareholders.

– One way America defuses its inequality problem is by separating the rich from the poor by hundreds of miles.

Soylent still people.

– Of Neal Stephenson and money. Read more

The 6am London Cut

Markets: Asia-Pacific markets were quiet on Tuesday, with key bourses shuttered for a public holiday. (FT’s Global Markets OverviewRead more