March, 2009
HSBC to cut more UK jobs
HSBC, Europe’s biggest bank by market value, may cut about 1,000 jobs in the UK, reports Bloomberg. The jobs will be eliminated in processing and operations, and some administration sites may be closed.
Two more top names leave Merrill
Two of the biggest names in Wall Street research are leaving Merrill Lynch in another sign that Bank of America’s acquisition of the bank has spurred many long-time employees to rethink their commitment.
Overnight markets: Mixed
Asian stocks were mixed on Wednesday after US stocks fell overnight; Asian technology and mining stocks fell as Japan’s exports slumped by a record annual 49% and metal prices dropped. Banks advanced.
US Corporate bond spreads, 2007-2009
Typically excellent chart from EconomPic Data showing the (d)evolution in the spreads on US corporate bonds over the past two years:
Related links:
European bond spreads hit highs – FT
Equities and bonds,
CDS update: Traders pause for thought
This CDS report was written by Markit’s Gavan Nolan
Credit and equity markets took stock today after yesterday’s robust rally. The Markit iTraxx Europe index was slightly tighter, reflecting a mixed performance in European stock markets.
[The Stanford Series] Vantis reports “significant shortfall of assets” at Stanford International Bank
Vantis, the UK-based company appointed by Antigua regulators to oversee the affairs of Stanford International Bank – which claimed more than $8bn in assets – is not optimistic about prospects for recovering investors’ cash.
G20 communiqué competition
Can you write empty words?
Are you, perhaps, a state-sector policy wonk, already drafting and re-drafting the solemn declaration that will be issued to a quivering world next week when leaders of the globe’s self-anointed Group of 20 nations break up from their summit in London?
Either way we are looking for the best summary of the likely official guff.
Rumourtrage – pharma edition
Predictable really.
After the recent flurry of big deals in the pharmaceutical sector – think Pfizer’s $68bn bid for Wyeth, Roche’s $47bn offer for the chunk of Genentech it did not already own and Merck’s $41bn takeover of Schering-Plough – it was only a matter of time before the rumour mill started to whirl into action.
From hedgefund to pizza delivery
Or, from $750,000 a year to $7.29 an hour, from fancy meals to food stamps.
Sounds sad to us, but if you want to see what real bonus rage looks like, read the comments here.
Structured credit cool on the Geithner Plan
As we know, equity markets greeted the Geithner toxic asset plans with joy – the Dow registered its fifth-biggest point gain in history.
The reaction in the structured credit markets on Monday was less enthusiastic as this this graphic from Bernstein Research highlights
The structured credit markets did show some positive reaction,
Roubini sees light at the end of the tunnel
But in typical Roubini fashion, it is very, very far away; more of a pinprick of phospherescence than a beam of brilliance, in fact.
From the English translation of an article in Italy’s Il Sole 24 Ore.
CDS report: Europe rejoices
European banks were some of the better performers in European credit derivatives markets on Tuesday, following the announcement of Tim Geithner’s public private toxic asset plan on Monday.
ABN Amro Bank CDS was tighter by 8.6bp at 99.125bp;
Energy fundamentals shifting
Retail gasoline prices may be going up, but overall refining margins are still in the doldrums.
And this time round it’s the weak distillate component that is really dragging down returns — quite the reverse of last year when gasoline was the predominant demand destruction casualty.
Lunch Wrap
On FT Alphaville this morning,
- Deflation avoided?
- Too much of a QE thing for Mervyn?
- Volte face from ArcelorMittal? Tapping the market with a €750m convertible.
- Accounting tricks and available for sale losses at HSBC.
Markets live transcript 24 Mar 2009
Markets live chat transcript for the chat ending at 12:11 on 24 Mar 2009. Participants in this chat were: Paul Murphy, FT (PM) Neil Hume, FT (NH) PM:Hi there – welcome to Markets Live
Too much of a QE thing for Mervyn?
Uh oh…
Now that CPI is rising, trusty Bank of England governor Mervyn King seems to be suffering from a touch of mind-changing.
Note the following flashes on the BoE’s just introduced quantitative easing measures (our emphasis):
HSBC and available for sale
Available for sale assets are those that aren’t held for immediate trading purposes but aren’t expected to be held for their entire lifespan. Basically, it’s a way of avoiding having to record a drop in the market price of the asset unless it’s sold or the drop in value is deemed to be permanent.
How do you say ‘bonus rage’ in Japanese?
While “bonus rage” has become a household phenomenon in America, in Japan, the unfolding saga has been met with at best, perplexed bewilderment and at most, quiet shock at the disclosures of bonus and salary levels.
Deflation avoided, phew
Back to 1960!
Those expecting the first negative retail price index number in the UK since 1960, will be disappointed. The latest CPI/RPI figures from the Office of National Statistics show deflation has been successfully avoided in February. Here’s the Reuters table,
ArcelorMittal taps the market
What gives at ArcelorMittal?
Last week, the world’s biggest steelmaker issued a furious denial to “reports” (well, actually rumours mentioned in the FT’s European market report) that it was working on a rights issue and had hired advisers.
Meredith Whitney is hiring
Someone in finance is hiring, and it’s not just anyone…
It’s bank-slayer Meredith Whitney at her new non-Oppenheimer gig. From the NYMag:
Whitney says that [her] company’s focus will be on the same type of research she was doing at Oppenheimer.
Further reading
Elsewhere on Tuesday,
- The New Econoblogger A-List.
- Give them their blood money.
- What people want (on the web).
- Spitzer joins the (DC) circus.
- Inside Obama’s economic brain trust.
Further reading, all about the Geithner PPIP plan
Across the FT and the blogosphere, responses to the US Treasury’s Public-Private Investment Program,
FT editorial comment:
No one knows whether the market malfunction is due more to long-term losses or short-term liquidity risk.
Pink picks
Comment, analysis and other offerings from Tuesday’s FT,
Gideon Rachman: The importance of empty words
To understand the emptiness of the exercise, you need only look back at the communiqué issued after the G20’s first summit in Washington last November.
Snap news
The latest on Tuesday,
- Credit Suisse says it has strong start to 2009 — Reuters.
- Lloyds of London posts 2008 PBT of £1,899m — statement.
- Dragon Oil announces preliminary findings of KPMG investigation — statement.
Stocks surge on US toxic asset plan
US stocks soared on Monday after Treasury secretary Tim Geithner detailed his proposals for public-private partnerships to deal with banks’ toxic assets and prominent investors such as Pimco’s Bill Gross and BlackRock’s Larry Fink said they would participate.
Critics respond to US plan
The Fed and US Treasury on Monday said the Fed will provide loans to investors willing to buy toxic “legacy” securities – including risky subprime mortgage-backed securities – under the Treasury’s new plan.