The (early) Lunch Wrap

Good morning New York,

ALPHAVILLE Read more

The Closer

FURTHER FURTHER READING

- A look at income inequality, hour by hour. And real wage growth this year. Read more

The 6am London Cut

Markets: Asian stocks only gained modestly in spite of a lift in US consumer confidence that pushed the S&P 500 up to a close above 2,000 for the first time. (FT’s Global Markets OverviewRead more

The 6am London Cut

Markets: Hopes for further easing from the European Central Bank boosted equities overnight but the rally has failed to extend into Asia. Overnight, the S&P 500 briefly traded above the 2,000 mark for the first time, before closing 0.5 per cent higher at 1,997.94. (FT’s Global Markets OverviewRead more

The Closer

FURTHER FURTHER READING

- The economic case for wiping out EbolaRead more

Draghi’s speech at Jackson Hole

Read it here, and see also the slide deck. As with all things ECB-related, we recommend following Lorcan’s twitter feed.

An excerpt from the speech below: Read more

Janet Yellen’s speech at Jackson Hole

You can read it here.

And below is an excerpt: Read more

This speaks for itself. When’s the crash?

Felix Salmon on the redundancy of banks, in Friday’s FT:

Today’s big Silicon Valley deals are not based on corporate synergies, or the amount that earnings per share will increase after the deal closes. They are not, therefore, based on the sort of thing that bankers can model. (Very few of the acquired companies have any earnings at all; some even lack revenues.)

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Video: US banking regulation and foreign banks

A discussion between FT banking editor Martin Arnold and Lombard editor Jonathan Guthrie:

The (early) Lunch Wrap

Good morning New York,

FT ALPHAVILLE Read more

The Closer

FURTHER FURTHER READING

- 40 charts that explain money in politicsRead more

Taking the Billiton out of BHP (and UK shareholders) – Part II

We have no idea if Andrew Mackenzie, the Scottish-born chief executive of BHP Billiton, is favour of independence.

But UK shareholders will certainly get the rough end of the pineapple if the FTSE 100 mining giant goes ahead with its proposed demerger of non core assets, announced on Tuesday: Read more

The Closer

FURTHER FURTHER READING

- The economics of Burning ManRead more

Taking the Billiton out of BHP

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

The Closer

FURTHER FURTHER READING

- Alan Beattie on RussiaRead more

The Closer

FURTHER FURTHER READING

- Investors pay for hedge fund illusionsRead more

The (early) Lunch Wrap

Good morning New York,

FT ALPHAVILLE Read more

Markets Live is on hols

Bryce and Murphy are taking a break. Regular 11am Markets Live sessions will resume on Tuesday, August 26.

In the meantime, stay flat.

The Closer

FURTHER FURTHER READING

- America’s new workforceRead more

The (early) Lunch Wrap

Good morning New York,

FT ALPHAVILLE Read more

Go long Harrods

Click for the Russian government’s official decree banning food imports from the US, EU, Canada, Australia and the Kingdom of Norway…

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The (early) Lunch Wrap

Good morning New York,

FT ALPHAVILLE Read more

The iron index screen

“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.

On the other hand — via Bloomberg on Friday (and more from the WSJ): Read more

The 6am London Cut

Markets: “Asian stocks dropped, extending the biggest global rout in six months that saw the Dow Jones Industrial Average wipe out this year’s gains in one session amid weaker earnings and credit-market concerns.” (BloombergRead more

Video: Argentina’s default

Joseph has a chat with FT capital markets editor Ralph Atkins:

Further reading

Elsewhere on Thursday,

- Then and now, the similarities and differences between 1914 and 2014

- When entertainment passes for investment advice.

- The anti-court court. Read more

The Closer

FURTHER FURTHER READING

- FT editorial on Russia and sanctionsRead more

The Closer

FURTHER FURTHER READING

- Three faces of low inflation: US, Japan, and the Euro area. Read more

Of obseen Libor manipulation

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:

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Temporisation watch

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.

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