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

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- 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

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- Alan Beattie on RussiaRead more

The Closer

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- 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…

 Read more

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:

 Read more

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.

 Read more

The Closer

FURTHER FURTHER READING

- Robin Hanson on the new Nicholas Bostrom bookRead more

The (early) Lunch Wrap

Good morning New York,

FT ALPHAVILLE Read more

The Closer

FURTHER FURTHER READING

- Another false alarm on US inflationRead more

The Closer

FURTHER FURTHER READING

- The most powerful economic sanctions of all. Read more

The Closer

FURTHER FURTHER READING

- Are labor markets exploitativeRead more

The (early) Lunch Wrap

Good morning, New York,

FT ALPHAVILLE Read more

Markets Live returns on Monday

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.

The 6am London Cut

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 OverviewRead more

Almost normal service resumes, join us for Markets Live at 11

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.