August, 2009
Tories stifle FSA staffing drive
The Financial Services Authority’s efforts to strengthen its supervisory and enforcement work by recruiting hundreds more staff have been thrown off course by the Conservative party’s plan to disband the regulator,
Eurozone business trails US and UK
The eurozone economy may appear to be recovering faster than those of the US and UK, but its companies are underperforming their British and American rivals, according to research by ING. Companies from the eurozone are the only ones,
UK banks ‘may need to shut third of branches’
UK retail banks may have to consider actions such as closing a third of their branches to restore profitability, the FT said, citing a new study by Bain. The business consultancy group group concluded that UK retail banks face a tough future in which their return on equity (RoE) could be 50 per cent lower than pre-recession peaks.
Iceland poised for foreign payback pact
Iceland’s parliament is close to approving the repayment of nearly €4bn lost by British and Dutch savers in a failed Icelandic bank – but with a series of conditions that could yet cause the pact to unravel,
Chinese commodity imports expected to slow
Chinese commodity imports are expected to slow in the second half of the year from record levels as the impact of the country’s stimulus package, arbitraging opportunities and stock-piling fade, according to a Royal Bank of Scotland report being published Monday.
Saudi groups’ dispute sparks lending fears
The financial travails of two prominent Saudi companies locked in a bitter dispute has caused banks in Saudi Arabia to clamp down on lending to private sector companies, setting back the economic recovery in the world’s top oil producer,
First Eastern cash call to break ground in China
Hong Kong-based First Eastern Financial Investment Group plans to raise Rmb6bn ($850m) via a new wholly-owned China subsidiary in a breakthrough that will make it easier for international private equity firms to raise and deploy capital in the country,
Directors’ bonuses set to cause new outcry
Cash bonuses for top directors of UK companies stayed high last year in spite of the recession, highlighting a trend that will anger investors hit hard by sharp falls in the value of company share prices,
Helius venture eyes whisky fuelled power
Helius Energy has formed a joint venture with a consortium of Speyside distillers to build a combined heat and power plant that will be the first in the world to be fuelled by whisky by-products. The £50m project will generate 7.2MW of electricity,
Deadline looms for Guaranty Financial bids
US banking regulators have asked prospective buyers of Guaranty Financial, a struggling Texas bank with $14bn in assets, to submit bids for the group by Monday, the FT said, citing people close to the matter.
Overnight markets: Sharply lower
Japanese traders sent the Nikkei lower despite news the world’s second largest economy pulled out of its longest recession in decades to grow 0.9 per cent in the three months to June. The expansion was the first in five quarters,
The Weekender
On FT Alphaville this week,
- The Paulson-Blankfein phone-fest fuelled more ‘squid’ outrage
- UK PLC posted spreadtastic returns
- The BOE introduced the Macro Plus Fund
- The US federal budget scared investors
- Mirror mirror on the wall:
CDS report: Investment grade indices post worst weekly performance since June
This CDS report was written by Markit’s Gavan Nolan
The US Federal Reserve sees a “levelling out” of economic activity and the French and German economies emerge from recession. Ceteris paribus, and given the plethora of upbeat economic data released in recent weeks,
US commercial and residential real estate datapoints still dismal
It has been a poor weak for economic data in the US: retail sales were disappointing, while jobless claims ticked up. Is it any wonder US consumers still aren’t feeling particularly confident?
In a word,
Will SEC and CFTC see eye to eye on CDS?
We all now know that the decision to leave the credit default swaps market largely unregulated didn’t really work out too well. The Commodity Futures Modernisation Act of 2000 has even been criticised by those who helped create it.
Lunch Wrap
On FT Alphaville on Friday morning,
- UK housing market, the untold story
- Schwarzman’s $702m package
- Surprise! (earnings on the upside)
- Markets Live with a Martini
- Further reading
On FT.com,
Markets live transcript 14 Aug 2009
Markets live chat transcript for the chat ending at 12:02 on 14 Aug 2009. Participants in this chat were: Paul Murphy (PM) Bryce Elder (BE) PM:Hi PM:Welcome to Market Live
Surprise! (earnings on the upside)
You already knew this. Stock markets have been screaming the fact for week. But here’s a little table confirming that EPS positive surprises outstripped negative ones by a ratio of 50/44 per cent during the second quarter.
UK housing market, the untold story
John Charcol mortgage expert Ray Boulger has written up his thoughts on the Treasury Select Committee’s brief on the housing market, Mortgage Arrears and Access to Mortgage Finance.
He makes some very lucid,
CEO pay: Schwarzman’s $702m package
What recession? “The 10 highest-paid CEOs of 2008 haven’t experienced one”, says Corporate Library Blog, an independent research group and blog, which puts together an annual “CEO Pay Survey,” a rundown of the whos,
Further reading
Elsewhere on Friday,
- The new bull market fallacy.
- Secret information from the Bureau of Labor Statistics.
- Recession dodgers embrace the oath.
- The Bernie Madoff Dining Index.
- Blackstone CEO is cashing out.
Pink picks
Comment, analysis and other offerings from Friday’s FT,
George Magnus: How to release the next boom
The senior economic adviser at UBS Investment Bank writes: In hard times, there is always an economic melancholy about the future.
Snap news
Breaking pre-market news on Friday,
- Aegon completes €1bn equity issue – statement.
- Corporate: Swatch, ThyssenKrupp, Hochtief, African Copper, African Minerals,KGHM,Paypoint.
Buyout firms to raise renminbi funds
Blackstone and the private equity arm of Goldman Sachs are among US firms establishing investment companies in China to raise renminbi funds from local investors and take stakes in local companies with Chinese partners. The two buyout firms join banks such as Citibank and HSBC in their ability to offer renminbi products.
Rio to spin off US coal mines
Rio Tinto plans to spin off some of its most valuable coal mines in the US, via an IPO that could exceed $1bn in value. The Anglo-Australian miner hopes by year-end to have completed an IPO of most of Rio Tinto Energy America,
VW seals €3.3bn Porsche deal
Volkswagen is to pay €3.3bn ($4.7bn) for a 42% stake in Porsche’s main production division, the two German carmakers said on Thursday as they moved towards full integration. In a deal that amounts to a rescue of debt-laden Porsche,
Takeover talk boosts FTSE
Takeover speculation helped push the FTSE 100 to a new 10-month high on Thursday, boosting property stocks as rumours circulated of potential interest in both Land Securities and British Land. The Telegraph reports that a consortium of Asian investors has approached Credit Suisse about a possible bid for British Land for as much as £10bn including debt.
Rebound unsure despite tech IPOs
Wall Street’s jaded appetite for the shares of new technology companies has shown signs of recovery in recent days, with the successful launch of the two biggest tech IPOs of the past year – Emdeon,
Blackstone sells maiden bond deal
In a rare move for a private-equity firm, Blackstone Group has sold $600m 10-year senior bonds in its first such deal, reports the WSJ. The notes, issued through Blackstone Holdings Finance Co, yielded 6.73%,