May, 2009
Overnight markets: Rising
Asian stocks rose on Wednesday, led by automakers and mining companies, after US consumer confidence jumped the most in six years and commodity prices climbed. Futures on the S&P500 Index lost 0.1% after the gauge climbed 2.6% on Tuesday after the Conference Board’s index of US consumer confidence surged to 54.9,
Coming soon: a wave of CMBS downgrades
There is quite a lot of pain ahead for any institution with exposure to commercial real estate, as a various recent (and not-so-recent) reports make clear. As the FT noted in March:
The commercial property market is under pressure across the US,
CDS update: After early jitters, markets edge tighter
This CDS report was written by Markit’s Gavan NolanAfter a shaky start, European credit markets recovered this afternoon with the assistance of news from the US. Stronger than expected consumer confidence figures from the states helped to assuage nerves created by nuclear and missile tests in North Korea.
The 6am Cut: A free news-by-email service from FT Alphaville
Get up to speed from the moment you rise. Sign up (free of charge) for FT Alphaville’s 6am Cut, a tight but comprehensive briefing emailed to you at the start of every European weekday morning (or in the Asian afternoon or late-night US time).
BoE gets 71 applicants for Blanchflower’s position
From Bloomberg:
May 26 (Bloomberg) — Morgan Stanley’s David Miles beat 71 other applicants for the job on the Bank of England’s Monetary Policy Committee which David Blanchflower will vacate at the end of this week.
Russian absolute returns
Like so many invading armies, Russia has a tendency to crush hedge fund pretenders. But not so during the first five months of this year.
Perhaps we should not be too surprised when the Russian RTS index has all but doubled in the space of three months.
US consumers see green shoots, but housing woes persist
House price slump be damned – US consumers are at their happiest in eight months, according to data from the Conference Board released on Tuesday.
The Board’s index of consumer attitudes hit 54.9 in May from a revised 40.8 in April – the biggest one-month jump since April 2003.
Merrill: Oil prices could pose risk to economic recovery
The recent rally in crude has been separately characterised as both an instance of irrational exuberance and as a legitimate ‘green shoot’ of economic recovery.
Merrill Lynch, however,
CDS report: Market steels wider
The cost of insuring against the possibility of default on European corporate bonds rose slightly on Tuesday, in spite of a growing number of high grade companies seeking to raise funds in the market.
Class struggles at Virgin Atlantic
Hot on the heels of British Airways’ dismal 2008 results comes a stunning near-doubling of pre-tax profit from self-proclaimed arch-rival Virgin Atlantic.
From Virgin’s press release:
Virgin Atlantic,
“Restoring the dreams back for the clients of Bernard Madoff”
One for the “Lessons for Bernie” file:
“Any entity can be formed, without capital, is just another dream going no where [sic]. Any entity cannot dream, only an entrepreneur can dream and possess the vision.
Lunch Wrap
On FT Alphaville Tuesday morning,
- The investment bank is dead, long live the investment bank.
- BofA goes counter-intuitive in Japan.
- Yet another MOST trader in trouble with the FSA.
- Stuff to do when it’s raining.
Markets live transcript 26 May 2009
Markets live chat transcript for the chat ending at 11:58 on 26 May 2009. Participants in this chat were: Paul Murphy, FT (PM) Bryce Elder (BE) PM:Hello PM:Welcome to Markets Live
Yet another MOST trader lands an FSA fine
No question as to where the top brass at Morgan Stanley stand on the issue of financial market abuse. The bank is a staunch supporter of the FSA new “get tough” policy.
Already this month alone we have seen a MOST credit derivatives trader,
BofA goes counter-intuitive in Japan
What does Bank of America know that others don’t about Japan? Amid its current scramble to raise nearly $34bn in fresh capital, including flogging off some of its lucrative stake in China Construction Bank after failing the US government’s banking stress test last month,
Stuff to do when it’s raining out
This is quite literally a mine of information – a new online data service from the US government. Appropriately enough, it’s called DATA.gov and it is said to be a “priority Open Government Initiative”
Flu-free prose?
It’s an “antibacterial ballpoint pen,” made by Staedtler.
Antibacterial additive in the barrel and grip provides a safe and effective way to protect against unwanted germs. Soft contoured triangular rubber grip ensures a comfortable writing experience.
The 6am Cut: A free news-by-email service from FT Alphaville
Get up to speed from the moment you rise. Sign up (free of charge) for FT Alphaville’s 6am Cut, a tight but comprehensive briefing emailed to you at the start of every European weekday morning (or in the Asian afternoon or late-night US time).
Further reading
Elsewhere on Tuesday,
- Sucker’s rally? History tells us differently.
- To fix the derivatives market, don’t.
- State of paralysis.
- For Porsche, karma is a Bitch V2.
- Design a country rescue package here.
Pink picks
Comment, analysis and other offerings from Tuesday’s FT,
America’s governance reform must not be ducked
Writes Anne Simpson of CalPERS: The winds of change that brought President Barack Obama into office will soon blow through US boardrooms.
India’s Bharti revives MTN deal
Bharti Airtel, India’s biggest mobile operator, controlled by telecoms billionaire Sunil Bharti Mittal, has revived talks with MTN of South Africa for a cross-share holding deal that could lead to a full merger and create one of the world’s biggest telecoms groups.
Germany to unveil choice for GM arm
The German government is set to name a preferred bidder for General Motors’ cash-strapped European operations by early Thursday, paving the way for one of the country’s biggest industrial bail-outs.
Danone plans €3bn cash call
Danone, the world’s biggest yoghurt maker, plans to launch a rights issue to raise €3bn ($4.2bn) to reduce its net debt and give it the flexibility to make bolt-on acquisitions. The French group, which made net profits of €1.3bn in 2008,
Porsche options profit at risk
Porsche, struggling to combine with Volkswagen, could lose some of the €17.3bn ($24.3bn) in profits recorded from holding VW options because it may not have the money to exercise them, reports Bloomberg.
CSL says US may block Talecris deal
CSL, Australian blood plasma products maker, said that US regulators are likely to block its planned $3.1bn takeover of US rival Talecris Biotherapeutics. US regulators had indicated they would oppose the deal – agreed last August – although a formal decision was still a few days away,
Rio cuts ore price, says Chinalco deal ‘evolving’
The $19.5bn tie-up between global miner Rio Tinto and China’s state-owned Chinalco is an “evolving” deal and still subject to shareholder consultation, Rio’s iron ore chief Sam Walsh said Tuesday, reports Reuters.
Citic Pacific to weed out non-core assets
Citic Pacific, the HK listed arm of China’s biggest investment company, said on Monday it would offload some non-core assets. The move is part of a business review ordered by its new head, who took over after a forex scandal that triggered a police probe and management shake-up.
Pressure grows for vendor financing
Companies anxious to boost liquidity by selling unwanted assets are under pressure to finance those sales themselves to draw bids from credit-strapped buyers. Seller financing has been considered in the disposals of at least three businesses now being circled by buy-out investors and rivals: