June, 2009
Yuan-ted: US renminbi bonds
Well, US Treasury sec Tim Geithner’s bond-selling trip to China certainly paid off…
NEW YORK (Reuters) – A top Chinese banker on Sunday called on the U.S. government and the World Bank to sell yuan-denominated bonds in Hong Kong and Shanghai to encourage the development of debt markets in those centers and to promote the yuan as a major international currency.
admin@nufc.co.uk
Ever wondered how you go about selling an ailing football club with a ruinously high wage bill that has been serially mismanaged for years?
Via email, of course.
The Board of Newcastle United can today confirm that the Club is for sale at the price of £100m.
More on maximum negative convexity
Wading into the Treasuries sell-off and negative convexity debate this Monday is Deutsche Bank.
Their central premise: you can’t explain the recent US government bond sell-off by convexity hedging alone.
Working knowledge of reckless leverage – Yell edition
Yell has a new chairman and it is someone who knows all about debt – a very senior ex-investment banker.
From the Yell statement:
Bob Wigley (aged 48) was, until 30 January 2009, Chairman, EMEA, Merrill Lynch International,
Quo vadis QSPEs?
Off-balance sheet vehicles — qualified special-purpose entities, or QSPEs — were blamed by many for fuelling the financial crisis: helping banks hide their true leverage and avoiding regulatory capital requirements.
Working knowledge of reckless leverage essential
Andy Hornby, the former chief executive of HBOS, the stricken bank, is poised to be named as the boss of Alliance Boots, Britain’s most indebted biggest pharmacy chain.
Mr Hornby, who stepped down from HBOS after the bank’s part- nationalisation and rescue takeover by Lloyds TSB last October,
Further reading
Elsewhere on Monday,
- Memories.
- The forecasters and their forecasts.
- Balancing California’s budget – you try it.
- Global crisis and reform – a long journey.
- How to invest for an economic rebound.
Pink picks
Comment, analysis and other offerings from Monday’s FT,
Tony Jackson: GM shows gravity of pension challenge
In the thunderous collapse of General Motors last week, one detail seems to have gone almost unnoticed.
BlackRock scrambles for BGI
BlackRock was on Sunday in discussions with Barclays as it raced to seal the purchase of Barclays Global Investors and see off an 11th-hour challenge from Bank of New York Mellon. Barclays is expected to decide early this week on who should buy its BGI unit.
Fidelity joins KKR in listings deal
Mutual fund group Fidelity is teaming up with US buyout firm KKR, in an unusual deal that will give Fidelity’s huge retail client base access to future public listings of KKR-owned and underwritten companies.
Chrysler investors try to stop Fiat deal
A group of investors in Chrysler has made a last-ditch effort to block an alliance between the troubled carmaker and Fiat. A US appeals court on Friday approved the sale of most of Chrysler’s assets to Fiat,
Doubts mount over US toxic asset plan
The controversial US toxic asset clean-up plan has fallen behind schedule and may never be fully implemented due to concerns among potential investors and waning interest from the banks themselves. Investors fear that Congress may set caps on pay while regulators are questioning whether the plan is necessary.
Lloyds repayment could boost Brown
Lloyds Banking Group is expected to repay about £2.3bn to the UK government this week, becoming the first lender in Europe to return bailout money to the taxpayer, reports The Times. The repayment would come far sooner than either the City or the government could have expected,
Bain in $630m boost for Gome
US buyout group Bain Capital is understood to have agreed to make a strategic investment of up to $630m in Gome Electrical Appliances, a leading Chinese retailer. The proposed deal marks Bain’s biggest mainland investment and will boost confidence in HK-listed Gome,
UBS, Merrill out of running for AIA
UBS and Merrill Lynch have failed to reach this week’s final round of interviews to choose advisers for the $5bn-plus IPO of AIG’s Asian life insurance unit. The listing of American International Insurance is set to be the world’s largest IPO since 2007,
Asia braced for wave of flotations
Asia will see a strong pick-up in market listings in the second half thanks to a steady flow of flotations in Hong Kong and expectations that Beijing could soon allow domestic listings for the first time in almost a year.
Premier League, NBA, eye tie-up
The English Premier League and the NBA are exploring a marketing and commercial tie-up that would draw on the strengths of the world’s two most popular sports leagues as they expand into international markets.
Clear Channel sees debt solution
The private equity owners of Clear Channel Communications are confident of winning a stand-off with lenders to the heavily indebted radio and outdoor advertising group, William Eccleshare, the new chief of its international business,
Hornby to take helm at Alliance Boots
Andy Hornby, former chief executive of HBOS, is set to become the chief executive of Alliance Boots, in a move that could enable him to restore his standing after his reputation was damaged when HBOS came to the brink of collapse last year.
Overnight markets: Mixed
Asian stocks mostly fell on Monday, as declines by commodity companies on weaker oil and metals prices overshadowed gains among companies reliant on overseas sales. Futures on the S&P500 Index lost 0.6% after the gauge fell 0.3% on Friday as concerns aboujt higher borrowing costs overshadowed a better-than-expected US employment report.
The Weekender
On FT Alphaville this week,
- Monday, the GM bankruptcy: owes creditors $172bn, has assets of $82bn.
- JPM says mild inflation good for stocks too.
- Tuesday, a Baltic quagmire.
- Bill Ackman’s all-nighter.
The big floating storage debate
The issue of floating storage is causing a spirited debate within the energy trading community.
You see, time-spreads are improving — in energy speak that means the curve is flattening, and the contango is abating.
CDS report: A reminder that political risk is not just for EMs
This CDS report was written by Markit’s Gavan Nolan
Political risk is typically associated with sovereigns in the developing world. However, events in the UK this week reminded investors that the more mature nations can suffer from governmental upheaval.
Cerberus loses senior European partners
Cue classical allusion about losing heads etc.
So depart Ken Leet and Jeff Lubin – the two senior-most partners at Cerberus in Europe. Full story over at Financial News.
The gist of things is that Cerberus is scaling back its European operations quite significantly.
The Icahn bounce
Carl Icahn is enjoying something of a resurgence.
According its latest letter to investors (via Bloomberg), the flagship Icahn Partners fund is up 16 per cent in 2009. Of particular note though is the fact that 7.3 per cent of those gains were made in the last month alone,