This morning on FT Alphaville,
- Thursday’s spike in overnight rates raises the spectre of a real financial crisis – but if central banks supply liquidity and banks and regulators clarify the extent of losses quickly, there will be “no need for panic”, says an FT editorial.
- Market turmoil, central bank shenanigans, and the unmistakeable stench of fear. Here’s what else has been said this morning.
- Central bank interventions yesterday aroused suspicions. Is there something they know that we don’t?
- Hedge funds anticipating massive redemption demands given recent volatility could be driving Thursday’s sell-off in US large caps.
- Bearish DK analyst Albert Edwards predicts a profits slump. With GDP growth predictions revised below 2%, any expectation to the contrary is “Utter, utter tosh!”, he writes.
- For bankers with large deals still in the market, the current turmoil is one giant headache. Three of the best, from Loan Radar.
- A look at some of the rumours doing the rounds…
- The current volatility is rooted in unsatisfying answers, says Frank Partnoy.
- The SEC has got its spade out and is checking the books of Wall Street’s finest, to make sure firms are marking down their inventory as aggressively as assets held by clients.
On FT.com this morning,
- The European Central Bank took more emergency action to try to calm jittery markets on Friday by lending €61bn to institutions over the weekend.
- European equities fell sharply in opening trade on Friday, tracking losses in US and Asian markets as investors were gripped by fears of a credit freeze in the global financial system. The FTSE 100 was down more than 3 per cent around midday, or more than 190 points, with heavily-weighted banking, mining and oil stocks leading a broad-based sell-off.
- The impact of a weak rand and dollar took the shine off increased sales at Old Mutual as South Africa’s largest insurer reported a 12 per cent drop in first half operating profits.
-House prices in London have once again accelerated away from the rest of the country, the latest FT House price index shows.
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