Good morning New York,
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We have no idea if Andrew Mackenzie, the Scottish-born chief executive of BHP Billiton, is favour of independence.
Nothing has been decided yet, but it looks increasingly like BHP Billiton is going to spin off its unwanted smaller assets in a new company — effectively undoing
another dud mining industry deal what’s left of its 2001 merger with South Africa’s Billiton.
But lots of questions remain unanswered. Two stand out in particular: What does this mean for a share buyback and what will PLC shareholders get out of it? (Remember BHP is a dual-listed company with Ltd shares in Australia and PLC shares in the UK). Read more
Bryce and Murphy are taking a break. Regular 11am Markets Live sessions will resume on Tuesday, August 26.
In the meantime, stay flat.
“From Nord Stream in the Baltic, to Russian bank subsidiaries in Austria…”
Shares in Gazprom, a company that made $32bn in net income last year, trade at only 2.6 times forward earnings.
So it’s not as if plenty of foreign fund managers weren’t already pretending that the Moscow market has been wiped from the face of capitalism.
Joseph has a chat with FT capital markets editor Ralph Atkins:
Lloyds gets a $383.2m fine for Libor manipulation — split between US and UK regulators and including a fine of £70m and some £7.76 million in compensation to the BoE for manipulating the Special Liquidity Scheme (yup, the same scheme set up to help struggling banks) — and we get to relive the glory days of Libor manipulation transcripts.
Some plain vanilla from the FCA:
That uneasy feeling when everything is going well. Is it deserved? Can it last? Should you cash in and go paint watercolours in that studio on the Pembrokeshire coast?
Strategists are not immune, with a summer bout of the temporaries upon us. Goldman is the latest, downgrading its view of stocks over the weekend but without really committing to it:
We also downgrade equities to neutral over 3 months. We are concerned that a sell-off in government bonds will lead to a temporary sell-off in equities in line with what we saw last summer, though the magnitude is likely to be smaller as the need for bond yields to correct is lower than it was back then.
Full ML service, with Bryce Elder and Paul Murphy, will be resumed after the weekend.
In the meantime, keep an eye here for a promised AbbVie/Shire infographic.
Markets: Heightened geopolitical tensions sent investors scurrying for safe havens. Overnight, the S&P 500 fell by 1.2 per cent, its biggest daily loss since April, while the Vix rose 32 per cent, spiking the most since April 2013. The price of WTI crude oil climbed 2 per cent. Haven assets rallied overnight, with the price of gold jumping $20 – or 1.5 per cent – before moderating by $3.50 in early Asian trading to $1,315 a troy ounce. (FT’s Global Markets Overview) Read more
Paul is still ill, and Bryce is wreck diving at Bikini Atoll (possibly), but Joseph and Dan will be hosting Markets Live today at 11am, London time — so please do join them.