Elsewhere on Friday,
- Just give people cash.
- Public debt/GDP ratios have had a poor track record in predicting crises.
Necessary but insufficient:
1) Be a dude…
2) …. but not the kind of dude who gets overly attached to his newborn children. That’s only appropriate for people who have “bosoms”. Read more
Ben Bernanke suggested the Federal Reserve could begin ending QE “in the next few meetings” if the jobs market continues to improve. “If we do that, it would not mean that we are automatically aiming towards a complete wind-down,” he cautioned, in testimony to Congress (Financial Times). Minutes of April’s FOMC meeting showed some officials were ready to “adjust the flow of purchases downward as early as the June meeting” (Wall Street Journal). Read more
Bank of Japan maintains asset-buying programme || Sony board discusses Daniel Loeb proposal || Taxing Apple || RICO and SAC || Gupta challenges U.S. wiretaps in appeal || Japanese trade data disappoints || Dimon prevails on dual role || Immigration legislation sent to Senate || Temasek raises stake in ICBC as Goldman exits || Fiat Industrial aims to move its tax residency to the UK from Italy || Italy considers plan for older workers to ‘handoff’ to younger generations || Markets || FTAV’s latest Read more
Apple CEO Tim Cook is up soon in front of a US Senate committee. First though, Professor Stephen E. Shay of Harvard, who knows both his tax and his bow-ties:
Click through the pic for the C-Span stream.
Oklahoma tornado kills dozens and flattens town || Congress accuses Apple of avoiding billions in tax || U.S. and Europe prepare to settle Chinese solar panel cases || US corn rush threatens prices || Vodafone to reinvest £2.1bn Verizon dividend || Qatar buying fresh stakes in key banks || Goldman Sachs is selling its remaining shares in Industrial & Commercial Bank of China || Riverstone leads talks of $1bn commodities venture || Japan panel warns of dangers if debt not addressed || U.K. inflation slowed more than economists forecast in April || Markets roundup || FTAV’s latest Read more
The FTSE 100 has closed at 6755, cruising past its 2007 pre-crisis peak to its highest level since 2000:
Rally monkey and suitable pessimism after the jump. Read more
Yahoo buys Tumblr for $1bn || Portuguese banks fear ‘Cyprus virus’ || Chesapeake taps Anadarko executive Lawler as CEO || The yen gained as much as 1.1% || Chinese house price data raises overheating fears || Concern is growing that US banks are making risky corporate loans || King warns Osborne on Help To Buy risk || Cohen is subpoenaed || Silver is at its lowest price level in more than two and a half years || M&A lending remains meagre despite low interest rates || Co-op’s retiring chief skips meeting || Markets summary || FTAV’s latest Read more
In this installment of Alphaville’s traditionally, if not actually, infrequent podcast Robin, Joseph and Cleary Gottlieb lawyer and sovereign debt maven Lee Buchheit discuss Cyprus, capital controls, a new sovereign debt restructuring mechanism and the best place to hang out if you are a restructuring lawyer. Read more
Japan’s economy grew at the fastest pace in a year last quarter || Lawyers for JPMorgan Chase have demanded that Bloomberg hand over data logs || Richemont chairman to take a break || IRS chief quits over Tea Party scandal || UK High Court rules Goldman Sachs tax deal lawful || Chinese FDI misses forecasts || RP Martin has removed its chief executive and an executive director from their posts || David Cameron is “open to all ideas” for returning RBS to private ownership || Platts fought an attempt to impose new regulations on world oil benchmarks last year || Spanish banks are bracing themselves for a fresh financial hit || Banks sue Lisbon over ‘toxic’ asset allegations || Brazil raised a record Rbn in its first auction of licences for oil exploration blocks || Warning over SWF opacity || Markets wrap || FTAV’s latest Read more
FT Alphaville is hiring! || Meet Bloomberg TradeBook || China GDP forecast revisions || Bloomberg withdrawal || US budget deficit declines faster than expected || France falls back into recession || HSBC announces more cost-cutting || China to surpass US corporate debt market in next two years || Latest on JPM shareholder vote || Walmart won’t join other retailers in factory safety deal || German court rules against Google search suggestions || Flowers to acquire Cabot Credit || Market Update Read more
We are looking for a natural writer, with an interest in all things financial to join the FTAV team in London.
Enthusiasm for online journalism and/or blogging is essential – as is an ability to get up in the morning. (We start early.) Read more
Sony to Loeb || CEO GO || That equities/commodities disconnect || Bloomberg messages leaked online || Watchdog probes energy & metals swaps || US to account for third of new oil supplies || Investor advisory firm hits out on Goldman exec pay || US housing groups to launch IPOs || Verizon Wireless will pay $7bn dividend to corporate parents || Obama outraged over claims IRS targeted Tea Party groups || Commerzbank moves to shore up capital || Market update Read more
FT Alphaville will not leave you hanging until August to find out the results of the meme competition we started on Friday. Such delay, after all, could leave you vainly trying to forget you ever entered, living in hope that the passage of time would permit friends and colleagues to also forget those anti-social times you spent staring into space before tackling a meme generator, over and over and over again. That’s just not how FTAV rolls.
Dual-track Libor replacement lined up: “The scandal-plagued Libor benchmark is likely to be replaced by a dual-track system with survey-based lending rates running alongside transaction-linked indices as soon as next year. Martin Wheatley, the UK regulator leading efforts to reform the London Interbank Offered Rate, told the Financial Times that a parallel system would provide continuity for holders of $350tn in existing contracts that reference Libor while also paving the way for a new benchmark tied more closely to objective data.” (Financial Times)
Top hedge funds bet on Greek banks: “Some of the world’s leading hedge funds are pouring money into the Greek banking sector in expectation of huge potential returns, even as the country struggles to right its economy in the face of deep government spending cuts.” (Financial Times) Read more
In this installment of Alphaville’s increasingly frequent podcast, Izzy, Simon and David chat about negative rates and whether they are a sensible policy option or a one way ticket down the rabbit hole.
Go on, take a break from sneaky Question Bank practice at work to enter FT Alphaville’s first ever CFA meme competition!
Here’s a few we’ve come up with ourselves
when we really should have been studying, and we are absolutely certain you guys can think of better ones…
CFA Confession Bear
Co-op’s rating cut || The latest in Cy-fi || Fannie to pay $59.4bn dividend to Treasury || Icahn & Southeastern team up for new Dell offer || ArcelorMittal profits surprise to upside || Google launches YouTube subscriptions || iRadio stumble for Apple || Sprint Nextel fight rumbles on || ResCap bankruptcy timing criticised || Market update Read more
Mapping billionaires || China’s April trade figures || Japanese exports || RBNZ intervenes in FX markets || Toyota’s net profit triples || New WTO director-general || Second shareholder advisory group calls for Dimon to drop chairman role || Commodities hedge funds continue losing streak || SAP’s big step into the cloud || Data brokers warned on business practices || Portugal’s bond issue || Chinese brokers boost profits with prop trading || Alibaba’s revenues surge || Markets update Read more
Brazil wins battle for WTO leadership: “Roberto Azevêdo has emerged as the new director-general of the World Trade Organisation after a pitched battle with Mexico’s Herminio Blanco, according to officials familiar with the contest. Both Latin American countries saw the race for the WTO leadership as a way of elevating their influence in the global economy and cementing their status as rising powers.” (Financial Times) Read more
CCPs, too big to fail || Mind the red metal || Big eurozone countries bust through deficit limits || Obama nominates commerce secretary || #IPO #Speculation @Twitter || Intel’s new chief exec in waiting || LinkedIn shares dive on guidance, #in || BNP Paribas profits down on falling IB revenues || Goldman’s sweet tax deal in the UK || Slovenia issues bonds || Market update Read more
FT markets round-up: “The euro fell sharply and European government bond prices rose as market participants digested the implications of the European Central Bank’s latest policy decision and subsequent comments by president Mario Draghi. The euro fell more than a cent against the dollar, taking it back below $1.31. The possibility of further ECB rate cuts pushed the yield on the German 10-year government bond to within a whisker of last July’s record low and drove the country’s two-year yield into negative territory. The Bund yield settled 5bp lower at 1.16 per cent and that on the Schatz fell the same amount to minus 0.03 per cent. Ten-year French and Belgian yields touched record lows. The 10-year US Treasury yield, meanwhile, was flat at 1.63 per cent as the market focused on Friday’s non-farm payrolls report.” (Financial Times) Read more