June, 2009
Over on ft.com/markets at 2pm…
Before Monday’s sell off, the FTSE 100 appeared to be stuck in a 200 point trading range – between 4500 and 4300.
But what’s in store for the British stock index once it breaks free of this pattern?
Discuss Footsie things with Jonathan Jackson, head of equities at Killik & Co,
Apres le rally, look to Asia and to gold
Hold on equity investors – and look to Asia, if some are to be believed. There is general unease among investors ahead of this week’s FOMC meeting. But that amounts to mere surface jitters compared to more substantial concerns about the approaching end of the “bear market rally”
Lunch Wrap
On FT Alphaville on Monday morning,
- Libor is useless.
- Anatomy of an Aim blow up.
- A year in perspective, Shanghai edition.
- Who’s not bothered about inflation?
- Efficient markets and Brixton.
Libor is useless
Much has been made of Libor’s recent descent to post-Lehman crisis lows. But while some say it marks the return of a healthy interbank lending market, others — rising in number by the way– appear to see it as evidence of Libor’s growing irrelevance.
Markets live transcript 22 Jun 2009
Markets live chat transcript for the chat ending at 12:05 on 22 Jun 2009. Participants in this chat were: Paul Murphy, FT (PM) Neil Hume, FT (NH) PM:Welcome PM:11.02 PM:It’s Monday.
Anatomy of an Aim blow up
Now, here’s something for purveyors of scandals on London’s junior market – a public censure and £225,000 fine.
The culprit is Blue Oar Securities (now called Astaire Securities), which the LSE says failed to discharge its responsibilities as a nominated adviser (nomad) to Worthington Nicholls,
A year in perspective, Shanghai edition
The Shanghai composite, 22/06/08 – 22/06/09:
Related links:
Beijing sets stage for resuming IPOs – FT
Chinese IPO’s – FT Lex
Who’s not bothered about inflation?
Here’s a nice graphic from the Bank of England’s recently released handbook on the “State of the art of inflation targeting”:
Notice any substantial central bank missing from the chart? If you’re having trouble clocking it,
Registration problems (updated)
Apologies to all those encountering log-in problems with FT Alphaville this morning.
We are trying to get it fixed.
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UPDATE: Problems should now be fixed
Efficient Markets Hypothesis — Brixton edition
62.5p – the share price of Brixton, a UK commerical property company, on Friday night.
38.4p – the value of Segro’s all stock offer for Brixton, announced on Monday morning.
44p- the current share price of Brixton.
All together now: ‘F is for failure’
Nice to see some fighting spirit out there in fund management land…
The speech here by hedge fund manager Paul Tudor Jones on “the fear of failure”, given to a class of ninth-grade students at Buckley School earlier this month,
Further reading
Elsewhere on Monday,
- Don’t believe that hyperinflation hype.
- Musings on FIASCO – and the customer as chump.
- On the uselessness of LIBOR.
- Michael Milken says “do no harm” — and he ought to know.
Pink picks
Comment, analysis and other offerings from Monday’s FT,
Analysis: respinning the web
There is something slightly unnerving about the speed with which a new consensus has emerged on the re-regulation of the financial system – especially when it comes to the concept known in bankerly jargon as “macro-prudential”
Snap news
Breaking pre-market news on Monday,
- Independent News & Media says outcome of talks with banks remains uncertain – statement.
- Allied Irish Banks to exchange tier 1, tier 2 securities – statement.
Xstrata in talks with Anglo American
Xstrata, the Swiss-based miner, has proposed a “merger of equals” with its rival, Anglo American, in a deal that could trigger fresh consolidation in the mining industry. Xstrata said on Sunday that a merger was “highly compelling”.
NAB buys Aviva’s Australia business
Aviva on Sunday night agreed to sell its Australian life and wealth management businesses to National Australia Bank for up to A$925m (£450m). The UK insurer, which put the business up for sale this year,
Fed plans repo markets revamp
The US Federal Reserve is considering big changes to the giant repurchase – or repo – markets where banks raise overnight dollar loans. The plans include the creation of a mechanism to replace the clearing banks that handle transactions – the biggest of which are JPMorgan Chase and Bank of New York Mellon - serving as intermediaries between borrowers and lenders.
Hedge funds bet on Lehman debt
Top hedge funds have been buying up Lehman Brothers’ debt in hopes that the failed investment bank’s estate can win court battles to recover billions of dollars in collateral held by competitors with whom it did business.
RBS chief in £9.6m pay deal
Royal Bank of Scotland will this week unveil a £9.6m pay package for chief executive Stephen Hester, after gaining support for a long-term incentive plan from shareholders. At a meeting on Friday, Sir Philip Hampton,
RBS courts fresh controversy
Royal Bank of Scotland was embroiled in a new controversy after it emerged that it would be spending hundreds of thousands of pounds on entertaining guests at the 13-day Wimbledon tennis tournament, reports The Times.
Beijing orders stock transfer
Every state-owned company that has listed in China since 2005 must transfer stock equal to 10% of shares offered to the National Social Security Fund, under a government edict issued at the weekend. A similar requirement already covers listings of Chinese state-owned companies in Hong Kong.
Nigeria to lift foreign bank takeover ban
Nigeria will lift a decades-old ban on foreign takeovers of its banks, said Lamido Sanusi, the new governor of the Central Bank of Nigeria, who told the FT he would encourage international banks to make acquisitions as part of a plan to boost confidence in Nigeria’s financial system.
Bankers’ pay soars amid exodus
Wall Street names that have had a particularly difficult time in recent months – including Merrill Lynch, UBS and Citigroup – are hiking pay for top investment bankers in an attempt to stop an exodus of talent.
Citi faces uncertainty as Banga quits
Citigroup’s business in Asia-Pacific, the bank’s fastest-growing region, faces a period of uncertainty after the resignation of its top executive after just 15 months in the post. Ajay Banga shocked colleagues with news on Friday night that he will join MasterCard as president and chief operating officer.
US seeks delay on Madoff restitution
Investigators of Bernard Madoff’s global swindle want more time to calculate the amount of money lost and the number of investors defrauded as they seek to determine restitution, but see no need to delay his June 29 sentencing,
Overnight markets: Up
Asian stocks rose on Monday, led by bank and electronics maker stocks, after the IMF said it will lift its world growth forecasts, overshadowing declines among commodity companies on lower copper and oil prices.
Xstrata approaches Anglo American
Sunday’s press release.
Zug, 21 June 2009
Xstrata plc (“Xstrata”) notes the announcement made by Anglo American plc (“Anglo American”) today. Xstrata confirms that it recently sent a written proposal to the Board of Anglo American seeking their consideration of a merger of equals of the two companies.
The Weekender
On FT Alphaville this week,
- Monday, QE: Too much liquidity, redux?
- RAMSI: the lock being fitted to the open stable door of British finance.
- Monsters of … NW1?
- Tuesday, executive hole Punch.
Re-mimicking the crisis
Commercial mortgage-backed bonds have been flying higher this week. As Reuters reported on Thursday:
June 18 (Bloomberg) — Yields on bonds backed by commercial mortgages fell relative to benchmark interest rates for the third day to the lowest this month as new offerings boosted investor interest.
Scrushy and the bygone era of CEO excess
Remember the golden (for some) era of CEO excess: Dennis Kozlowski’s priceless shower curtain, Conrad Black’s lavish toga party, Bernie Ebbers’ gold taps and even, as a late starter, John Thain’s $1.2m office refurbishment?
A US court on Thursday revived memories of such ostentation with a staggering $2.88bn civil judgment against Richard Scrushy,