July, 2009
UBS to shake up US brokerage
Oswald Grübel, UBS’s chief executive, wants to shake up the top managerial ranks of the embattled bank’s brokerage business in the US after deciding against a sale, the FT reported, citing people familiar with the matter.
Canary Wharf to be casualty of Nomura shift to City
Nomura is in exclusive talks to move its UK business, including teams acquired from Lehman Brothers, into an office development in the City of London, the FT reported. In the largest office deal in the square mile since 2005,
Private equity deals are ‘not riskier’
Academic research has cast doubt on the link between private equity ownership and a higher failure rate for companies, in a finding that could be useful in the buy-out industry’s battle against proposed regulation,
Exporters squeezed by euro strength
The strength of the euro is forcing European companies to step up cost-cutting to compete with rivals from the US and elsewhere amid fears that it could slow their recovery when demand picks up, the FT reported.
Broker-banker marriage hit by breaches of trust
The financial industry’s vaunted belief in trust and long-term relationships is being challenged by research showing that before the crisis US mortgage brokers fed loans of deteriorating quality to the banks they did most business with,
US futures brokers fear new capital rules
US futures brokers could be forced out of business if Washington regulators push forward with a plan to increase capital requirements by at least 25 per cent, Newedge, one of the biggest companies in the sector has warned.
Fraud agency to investigate MG Rover case
The Serious Fraud Office has been called in to investigate the collapse of MG Rover more than four years after the carmaker went into administration. UK business secretary Lord Mandelson told the FT that he had an “obligation”
Overnight markets: Down
Japanese equities fell for a fourth day on Monday, marking what Bloomberg described as their longest losing streak since October. By the 11am break in Tokyo, the Nikkei 225 had declined 154.80, or 1.6 percent,
The Weekender
This week on FT Alphaville,
- Fiscal patriotism, we NEED YOU!
- Bubbles, the shampoo and Chinese kind.
- A rogue trader in crude oil.
- Introducing www.franktimis.co.uk.
- Taleb vs Tavakoli goes postal.
How to profit from a heatwave
Go long sunscreen, perhaps? Barbecue sausages and patio furniture?
What about going short old people?
That idea comes via Brewin Dolphin analysts Sahill Shan and Chris Glasper in a note on Southern Cross Healthcare,
In memoriam – Sam Jones, an FT Alphaville competition
Our colleague Sam Jones is leaving us to take up the glamorous role of FT hedge fund correspondent.
We’re honouring him with a competition. Rules below.
Lunch Wrap
On FT Alphaville Friday morning,
- Some fiscal patriotism.
- Shampoo and China bubbles.
- AIG bringin’ down the world in Further reading.
- The human factor in Pink picks.
- Bank of Ireland and bins in Markets Live.
Markets live transcript 3 Jul 2009
Markets live chat transcript for the chat ending at 12:14 on 3 Jul 2009. Participants in this chat were: Neil Hume, FT (NH) Paul Murphy, FT (PM) NH:good morning and welcome to Markets Live
Fiscal patriotism
Perhaps what’s needed in this time of state fiscal crisis is a bit of war mentality — patriotism, solidarity and all that.
That’s our takeaway from a piece of research by Goldman Sachs economist, Saleem Bahaj,
Bubbles…
. . . and before you ask that isn’t a reference to the late Michael Jackson’s pet chimp, but China’s latest runaway IPO.
From FT.com:
Bawang International, a Chinese herbal shampoo maker, shined on its market debut in Hong Kong on Friday,
Further reading
Elsewhere on Friday,
- So much for those ‘green shoots’.
- How to read US employment figures.
- Smells like deflation.
- How AIG FP brought down the world.
- Statistics and basketball for beginners.
Pink picks
Comment, analysis and other offerings from Friday’s FT,
Adam Posen and Nicolas Véron – European banking needs a state-led triage body
The Bank for International Settlements has just announced that national governments have done too little to clean up their banking problems,
Snap news
Breaking pre-market news on Friday,
- Bank of Ireland sees impairment charges of €6bn in 3yrs to 2011 – statement.
- Friends Provident completes demerger of stake of in F&C Asset Management – statement.
US jobs data dash recovery hopes
Stock markets on both sides of the Atlantic tumbled on Thursday as a bigger-than-expected fall in US jobs last month dashed hopes that the US was moving out of recession. The data showed that the number of people in employment fell 467,000 in June and the unemployment rate rose from 9.4% to 9.5%,
US regulators close seven banks
US state regulators on Thursday closed six banks in Illinois and one in Texas, raising the number of US bank failures to 52 this year, reports the WSJ. The seizures were the most in a single day during the financial crisis.
‘Rogue broker’ blamed for oil spike
A startling spike in oil prices on Tuesday to their highest this year was caused by a rogue broker who placed a massive bet in the Brent oil market, triggering almost $10m (€7m) of losses for his company.
US toughens up on bank buy-outs
Private equity that want to buy troubled banks would have to maintain significant capital levels and promise not to “flip’’ investments for at least three years, under proposals by US regulators.
Chinese approach Repsol YPF
Two of China’s biggest oil groups have approached Repsol YPF, the Spanish oil company, over possible asset purchases and joint ventures worth billions of dollars. Repsol is discussing a possible sale of its 75% stake in YPF,
J&J to buy stake in Ireland’s Elan
Johnson & Johnson on Thursday said it will buy an 18.4% stake in Irish biotech company Elan, in a $1.5bn bid to crack the elusive but potentially lucrative market for Alzheimer’s disease treatments, reports the WSJ.
China eyes $5bn railway IPO
The Chinese government has hired two foreign banks to restructure some of the country’s best railway assets with a view to listing the holding company in an initial public offering that could be worth as much as $5bn.
IPIC raises $5bn to fund spree
The International Petroleum Investment Company, which is wholly owned by the Abu Dhabi government, on Thursday said it had raised $5bn in syndicated loan facilities to help finance a recent multibillion dollar spending spree.
ICG launches £351m rights issue
Intermediate Capital Group, the mezzanine debt provider, is to raise £351m in a fully underwritten rights issue to boost its “firepower” for buying debt in private equity-owned companies at big discounts.
TCI revenues up by more than 70%
The Children’s Investment Fund Management, the UK hedge fund manager run by Christopher Hohn, posted its fourth consecutive year of double-digit growth in 2007. Revenue rose more than 70% from £333m to £574m,
Ruth Madoff stripped of property
US marshals on Thursday seized the luxury $7m New York City penthouse apartment of imprisoned fraudster Bernard Madoff and his wife, Ruth, reports Reuters. Mrs Madoff was present when agents took possession of the four-bedroom apartment on Manhattan’s East Side under court orders.
Ex-IKB chief faces charges
Germany could soon see its first trial related to the financial crisis, after prosecutors charged Stefan Ortseifen, the former chief executive of stricken lender IKB. Prosecutors in Düsseldorf said they had charged Ortseifen – who led the mid-sized corporate lender until its near-collapse in the summer of 2007 – with manipulating the share price and breach of trust.