August, 2009
CIT gives NY Fed oversight powers
CIT, the troubled US lender, on Thursday agreed with the Federal Reserve Bank of New York, its primary regulator, to give the Fed detailed oversight of its restructuring plans and veto power over dividend payments and other shareholder-friendly activity.
Eurozone data raise recovery hopes
The German and French economies unexpectedly bounced back in the second quarter, raising hopes of a eurozone recovery. After four consecutive quarters of negative growth, the region’s two biggest economies each grew 0.3% in the quarter through June,
Myners proposes non-voting shares
UK companies should issue non-voting shares to give more activist shareholders a role in corporate governance issues, Lord Myners, the UK Treasury minister, has suggested in the latest in a series of controversial ideas that have been attacked by shareholder groups.
Prudential eyes expansion
Prudential, the assurance group and asset manager, on Thursday positioned itself as one of the stronger performers in the UK insurance sector as it raised its dividend and reiterated its commitment to expansion in the US and Asia.
TD Waterhouse buys OMX Securities
Stockbroker TD Waterhouse on Thursday announced the acquisition of OMX Securities, a Birmingham-based company that provides clearing and settlement services to stockbrokers and fund managers. The acquisition of OMX,
India’s ONGC seeks YPF bid partner
India’s Oil and Natural Gas Corporation is seeking a partner for a possible $17bn bid for YPF, the Argentine arm of Spanish oil group Repsol, according to an ONGC executive who told the FT on Thursday that the group was exploring opportunities and partners for a bid,
Tax officials probe Agnelli estate
The Italian tax authorities are investigating whether the estate of Gianni Agnelli, the late titan of Italian industry, has undeclared assets of about €1bn hidden in Swiss bank accounts. The probe was triggered by a family feud over Agnelli’s estate with his daughter alleging that money had been stashed abroad.
Merrill ramps up recruitment
Bank of America’s Merrill Lynch unit is offering bigger signing packages than those offered in the bull market of 2006-07, as it ramps up its recruitment programme to replace financial advisers who have left its “thundering herd” in the past year.
Citi trader in tussle over award
Citigroup, the US government and Andrew Hall, the bank’s star energy trader, are locked in a three-way tussle over a controversial contract that could award him $100m in compensation this year. Hall – who heads Phibro,
Overnight markets: Mostly up
Asian stocks rose on Friday, putting the MSCI Asia Pacific Index on course for its highest level in 10 months, after increased metal prices boosted commodities companies. Futures on the S&P500 Index added 0.1% after the gauge climbed 0.7% on Thursday as better-than-estimated earnings from Wal-Mart overshadowed an unexpected decline in retail sales.
Amherst says RMBS investors misreading the market
Investors in residential mortgage backed securities are getting their sums wrong, according to analysts at Amherst Securities.
As they put it, a tad smugly:
With the recent run-up in prices in the non-agency market,
Natgas imbalance warnings begin
From the Tennessee Gas Pipeline company on Thursday (our emphasis):
Tennessee Gas Pipeline Company – Notice Text
DATE: AUGUST 13, 2009 9:00 AM CCT TO: ALL TENNESSEE
Dawn of the investment assembly line
Machines are taking over the management of equity assets, according a new report issued this week by Tabb group, the research house that drew heavy attention to the proliferation and effects of high frequency trading in US equity markets.
Because of statistics / I am not alone any more, I can play in the numbers’
Reuters journalist Simon Rabinovitch on Thursday challenged critics of China’s economic numbers to “spare a thought for the sensitive, earnest souls who gather the data.”
Because Chinese statisticians,
Natgas, literally under pressure
US natural gas prices are refusing to budge higher with the rest of the energy complex:
This has led some to wonder why, especially since natgas rig counts are actually decreasing. According to Baker Hughes,
For credit investors at least, ‘the worst is over’
How quickly sentiment changes. All that doom and gloom was so Q1. Markets are rallying and big names have been queueing up to tell us that Western economies have bottomed out.
So we should not be too surprised by the latest European Senior Credit Investor Survey from Fitch,
Lunch Wrap
On FT Alphaville on Thursday morning,
- Great, great under-expectations – what the pundits say
- Krugman makes a $1.7m Manhattan bet
- The ‘all you can fly’ jet pass
- Yanzhou swoops on Felix
- John Paulson’s ‘success-breeds-success’ strategy
- British Land,
Markets live transcript 13 Aug 2009
Markets live chat transcript for the chat ending at 12:00 on 13 Aug 2009. Participants in this chat were: Paul Murphy (PM) Bryce Elder (BE) PM:Good morning. PM:Welcome
Yanzhou swoops on Felix: Now for the hard part
Timing is everything, as the Chinese are learning. A day after China (slightly) back-pedalled on its allegations against four Rio Tinto employees, Yanzhou Coal Mining Co, China’s fourth-biggest coal producer,
John Paulson’s ‘success-breeds-success’ strategy
Once again, John Paulson is suggesting by his actions that he knows something we don’t. The zillionaire hedge fund manager – who made billions betting against subprime mortgages and shorting bank stocks over the past two years – has gone big on Bank of America.
Krugman makes a $1.7m Manhattan bet
Ha! Could this explain Nobel economist Paul Krugman’s recent turn to the bullish-side?
As the New York Observer reports, Krugman has splashed out $1.7m on a three-bedroom Riverside Drive Manhattan apartment.
Madoff, the kiss-and-tell story
Oh no, not this. Anything but this:Aug. 13 (Bloomberg) — An accountant who has publicly blamed imprisoned con man Bernard Madoff for stealing her family’s savings has written a book that will disclose a secret she previously withheld — they once had an extramarital affair.
Great, great, under-expectations:What the pundits say
Following FT Alphaville’s various posts this week on the growing debate about the equity market recovery – including Wednesday’s insights from The Pragmatic Capitalist and this from Gluskin Sheff chief economist David Rosenberg – Lex on Thursday notes the recent rise in “contrarian measures”
Introducing the ‘all you can fly’ jet pass
This little story on JetBlue Airways caught our eye on Reuters on Thursday (our emphasis):
NEW YORK (Reuters) – JetBlue Airways is offering a $599 one-month pass for unlimited travel on Wednesday in a bid to get more passengers airborne and jump-start a sluggish summer for the airline industry. The pass,
Further reading
Elsewhere on Thursday,
- An alien translation of the FOMC policy statement.
- Comparing the 1929 and 2009 major rallies.
- Elizabeth Warren: “We have a real problem coming…”
- Hedge funds take accidental turn into porn.
Pink picks
Comment, analysis and other offerings from Thursday’s FT,
Short View, video: Fed sees recovery
The skill of reading between the lines of Fed statements has not been in demand since the credit crisis started.
Snap news
Breaking pre-market news on Thursday,
- Prudential’s first-half loss narrows on US sales, investments – statement.
- Aegon to launch equity issue of up to €1bn, posts fourth straight loss – statement,
Fed holds steady
US Federal Reserve policymakers said on Wednesday that “economic activity is levelling out” and that the Fed “anticipates” completing its planned $300bn Treasury purchases by October – a month later than expected.
BofE sees ‘slow’ UK recovery
The Bank of England on Wednesday gave a more robust than expected forecast for the UK economy into 2010, even as it warned that the recovery would be “slow and protracted”. The Bank’s quarterly inflation report suggested that interest rates are set to stay low for longer than expected by the market and that its £175bn programme of cash injections was unlikely to be unwound any time soon.
Paulson bets big on BofA
John Paulson, the renowned hedge fund manager, has bought close to 2% of Bank of America. The price of BofA stock nearly doubled in the second quarter – when Paulson purchased 168m shares – bringing the value of his holding to $2.2bn as of June 30,