August, 2009
Swedbank unveils $2bn rights issue
Swedbank, the biggest lender in the troubled Baltic countries, on Monday reported signs of stabilisation in the region even as it announced a SKr15bn ($2.1bn) rights issue to shore up its battered balance sheet.
Amcor to finalise A$2.4bn deal
Amcor is poised to cement its position as one of the world’s largest packaging businesses as its finalises details of the A$2.4bn ($2bn) purchase of Alcan packaging assets from Rio Tinto, the Anglo-Australian minder.
3i to offload European assets
3i, the former powerhouse of Europe’s venture capital industry, has entered exclusive talks to sell a portfolio of 36 European venture capital investments to a consortium led by Coller Capital and HarbourVest Partners for about £100m.
Air China raises Cathay stake
Air China, the country’s flag carrier, has agreed to pay Citic Pacific, the Hong Kong arm of the Chinese investment group, HK$6.3bn ($813m) to lift its stake in Cathay Pacific, only three years after first securing a holding in the HK airline.
Blackstone seals British Land deal
Blackstone, the US buyout group, is set to buy half of the Broadgate Estate in the City of London from British Land, reports The Times. The deal could be announced as early as Tuesday when British Land reports Q2 results,
Slight thaw in City hiring freeze
The hiring freeze in the City of London is beginning to thaw, according to recruiters, but it is still early days. New figures from Morgan Mckinley consultants show that new momentum in the jobs market in June kept pace through July,
Spielberg’s Dreamworks raises $825m
Stephen Spielberg on Monday announced the completion of a hard-fought $825m fundraising which will relaunch his DreamWorks studio as an independent venture, with the biggest contribution – $325m - coming from Reliance Group,
New AIG chief to receive $7m pay
Robert Benmosche, AIG’s new chief executive, will receive annual pay of $7m in cash and shares and be in line for a bonus of $3.5m a year, the troubled US insurer announced on Monday. Benmosche’s package has been approved “in principle” by the Obama administration’s “pay czar” Kenneth Feinberg.
Identity theft case affects 130m
The US brought criminal charges on Monday over the alleged theft of account details linked to 130m credit cards, a case of identity theft that far exceeds any previous comparable crime. Millions of European cardholders – especially in the UK – are among those whose cards were compromised in the fraud.
Overnight markets: Mixed
Asian stocks mostly fell on Tuesday, led by commodity companies, after sharp falls on Monday and as oil and metals prices slid amid concerns that the global economic recovery will fail to meet investors’ expectations.
AIG’s new chief executive worth 7 million times the old one
Annual salary of AIG’s previous chief executive, Edward Liddy = $1.
Annual salary of AIG’s new chief executive, Robert Benmosche = $7m in cash and stock.
DealBook reports:
The American International Group said Monday that it will pay its new chief executive,
Lehman fallout weighing on CMBS market, S&P says
Last August, when it seemed the financial world was teetering on the brink of collapse, FT Alphaville wondered whether commercial real estate and CMBS would ultimately lead to the demise of Lehman Brothers.
Land of the rising GDP…and deflation
Hot on the heels of France and Germany, Japan on Monday reported that its economy also returned to growth in the second quarter. Excellent news on the face of it, but a closer look at the details reveals all is not so rosy.
Things looking ugly for the UNG
Last week, prominent oil-industry financier Matt Simmons, CEO of Simmons & Company International, weighed in on the UNG/commodity exchange-traded-fund (ETF) debate by posting the following missive to a handful of recipients:
Conjuring QE
FT reader Eric Keetch achieved financial fame (of sorts) last week, with his whimsical explanation of quantitative easing.
Published in the FT’s letters pages, Keetch used a picturesque European town,
Lunch Wrap
On FT Alphaville on Monday morning,
- Footsie risers.
- Swedbank sweats.
- Bringing it back on balance sheet.
- The missing shame gene.
- Shanghai turndown.
- Monoline vertigo.
- Restructuring structured products,
Shanghai turndown
The Asian sell-off is one of the dominating market stories on Monday. In particular, attention is focusing on the spill-over from China’s recent equity slide and into more open markets like Hong Kong.
The chart below,
Bringing it back (on balance sheet)
Amid all the accounting-related chicanery currently taking place, the one below, we think, has been flying rather under the radar.
From Asset-Backed Alert:
U.S. government officials are aiming for September to decide once and for all how banks’ capital reserves should reflect a tidal wave of securitized assets that are headed for their balance sheets.
Markets live transcript 17 Aug 2009
Markets live chat transcript for the chat ending at 11:56 on 17 Aug 2009. Participants in this chat were: Paul Murphy (PM) Bryce Elder (BE) PM:Hi PM:Welcome to Markets Live
Footsie risers
FTSE 100 at 10.30 — 4616, down 97
The missing shame gene
Bob Diamond lacks one — certainly according to rivals at JP Morgan, who have gone crying to the FSA over the terms being dangled by BarCap in front of Todd Edgar’s commodities trading team at JPM which Bob and Co are trying to poach.
Swedbank sweats
Things may be getting better around the world, but as can be seen in Swedish lender Swedbank’s results, loan impairments originating from the Baltic region are still growing meteorically:
Indeed,
Monoline vertigo
Your daily dose of structured finance irony served right here, in the below statement from ratings agency Fitch:
CHICAGO–(BUSINESS WIRE)–Fitch Ratings has reviewed MBIA Capital Management Corp. (MBIA
Restructuring structured products, an update
From the UK’s Financial Ombudsman and the FSA:
At the time of the Lehman Brothers collapse in September 2008, it transpired that a considerable number of UK investors had taken out [structured product] plans where either a full or partial guarantee had been provided by Lehman’s.
Further reading
Elsewhere on Monday,
- Battle of the PhiBro Bonus.
- “I’m always disappointed by how short the ‘holiday dividend’ is once you’ve got back into the routine of life.”
- The gospel of getting rich.
Pink picks
Comment, analysis and other offerings from Monday’s FT,
Clive Crook: Obama took wrong turn on health
Many who are sceptical about the Democrats’ plans have asked intelligent questions. But this is too dull for prime-time,
Snap news
Breaking pre-market news on Monday,
- Swedbank to raise SEK 15bn in rights issue — statement.
- Corporate: Hardy Oil & Gas, Heritage Oil, BG Group, WH Ireland, Dragon Oil, Shaftesbury, Michael Page,