September, 2009
The Wile E. economy
Merrill Lynch economists are apparently quite fond of Looney Tunes. Click to enlarge.
Wile E. Coyote cartoons — those involved cliff risk, right?
Drug dealers or recession gurus?
The FT’s Lucy Kellaway, known for her witty take-downs of management guff, set her sights on rapper-turned-management guru 50 Cent in her column on Monday:
At the age of 12, he was a drug dealer; at 22,
Do you want to set Libor?
The deadline for snaring a place on the BBA’s daily LIBOR-setting panel is approaching.
To enter you must be able to prove that:
a) you are a bank
b) you are already active in the interbank market
c) you haven’t confused yourself (and are,
When fashion meets finance (sort of)
Bad things always seem to happen when fashion and finance collide.
We wonder if American Express is rethinking its latest PR move – giving 600 cardholders access to an exclusive runway show by New York designer Phillip Lim.
Lunch Wrap
On FT Alphaville Monday morning,
- RBS: Once bitten, twice shy?
- Bankers vs ballers, by Bove.
- Spanish eye contingencies.
- Aussie banks are doing fine, thanks mate.
- Where’s the money (market funds)?
- Russia’s matryoshka banks.
Russia’s matryoshka banks
You never know what’s next inside a matryoshka doll. Thanks to the financial crisis, the same might be applicable to Russian banks’ balance sheets too.
Because of the diverse collateral pledged by Russian companies to guarantee loans,
Markets live transcript 21 Sep 2009
Markets live chat transcript for the chat ending at 12:09 on 21 Sep 2009. Participants in this chat were: Bryce Elder (BE) Miles Johnson, FT (MJ)
BE:
Good morning
BE:
And welcome to Markets Live
Spanish eye contingencies
Via Barclays Capital’s Monday economics morning comment (our emphasis) :
Savings banks’ profits have declined by 32.7% to €3.4bn in H109 according to the Ceca, the Spanish confederation for savings banks,
Where’s the money (market funds)?
David Galland, of Casey Research, is long on conspiracy in his Pragmatic Capitalist article on money market funds.
Let’s be clear. The US Treasury has not suddenly decided to withdraw its guarantee on money market funds (MMFs) — the guarantee was due to expire on September 18,
Aussie banks are doing fine, thanks mate
What do you know – Australian banks punch way above their weight, according to new figures that show Australia’s four big retail banks and Macquarie, the investment bank, have raised a combined $82bn of government-guaranteed debt since October.
RBS: Once bitten, twice shy?
So RBS is “mulling” a modest share issue to reduce the stake the UK government gets under its involvement in the APS — news we know in part thanks to the selfless and Herculean efforts of a certain Mr Source Close to the Situation who,
Bankers vs ballers, by Bove
Confirming what everyone in the UK — land of the obscenely paid footballer — already knew, veteran banking analyst Richard Bove has authored a piece of research illustrating that bankers do not make as much as those in professional sports.
Further reading
Elsewhere on Monday,
- Lessons to be learned from Dow 36,000.
- “It’s suddenly become very hip to believe in a V-shaped recovery.”
- The search for yield.
- An update on my wife’s junk.
- More junk (bonds).
Pink picks
Comment, analysis and other offerings from Monday’s FT,
The new system offers a real missile defence
Hillary Rodham Clinton, US secretary of state, writes that Barack Obama’s decision to deploy a stronger and more comprehensive missile defence system in Europe came after a lengthy and in-depth review of our assessment of the threat posed by Iran’s ballistic missile programme,
Snap news
Breaking pre-market news on Monday,
- Punch Taverns announces repurchase of 33.9 per cent of its 2010 convertible bonds – statement.
- Land Securities confirms the sale of a third of the Birmingham Bullring for ₤210m – statement.
BIS regulator urges caution
The head of the body that oversees global banking regulation warned at the weekend that the world cannot afford to slip into a “complacent” assumption that the financial sector has rebounded. Speaking ahead of this week’s G20 summit in Pittsburgh Jaime Caruana,
Cazenove, JPMorgan, close to deal
Top executives at Cazenove and JPMorgan are thought to be close to agreeing a price for Cazenove’s share of their JPMorgan Cazenove UK joint venture before the year’s end, reports the Independent on Sunday.
Wynn to seek $1.6bn in IPO
Las Vegas-based casino operator Wynn Resorts will seek as much as HK$12.6bn ($1.6bn) based on pricing set over the weekend for a Hong Kong listing of the company’s Macau assets next month, reports the WSJ.
Goldman invests $250m in Geely
A Goldman Sachs-managed private equity fund is investing about $250m in Geely Holding Group’s Hong Kong-listed arm to fund the Chinese automaker’s growth plans, reports the WSJ. Geely is set to announce the investment by Goldman Sachs Capital Partners on Monday.
Carlyle in China milk powder deal
Carlyle Group on Sunday unveiled a substantial strategic investment in one of China’s top milk-powder producers, underscoring rising foreign involvement in a sector still reeling from recent health scandals.
Alcatel chief quells China takeover fears
The risk of a takeover of a Western telecoms equipment maker such as Alcatel-Lucent by a Chinese rival has been overplayed, said Alcatel’s chief executive Ben Verwaayen, reports the WSJ. Verwaayen, speaking after a visit to China,
NY official casts doubt on Moody’s
US insurance regulators are expected to discuss dropping Moody’s Investors Service from a list of acceptable rating organisations at a meeting later this week, according to an official in the New York Insurance Department,
Japan set ‘to freeze’ sale of Post Bank
Japan’s new government is poised to halt the scheduled IPOs of Japan Post Bank, the world’s largest bank by deposits, and its sister insurance company. The privatisation of Japan Post under the Koizumi administration earlier this decade broke the institution into four separate units and envisioned their sale to investors as early as next year.
EU rules to drive hedge fund exodus
Nearly half of the UK’s hedge funds are likely to move abroad if new EU regulations are passed, according to a study of the alternative asset management industry by think tank Open Europe to be issued on Monday.
Strong demand for California bond issue
Strong demand for California’s latest debt sale has pushed down anticipated yields in a further sign of reviving credit markets. The state on Monday begins the sale of $8.8bn in short-term notes, less than three weeks after it stopped issuing IOUs to pay its bills amid a budget crisis.
European property groups in debt trap
European commercial property owners face a wave of complex debt refinancings and restructurings that pose a threat to the sector, according to bankers and industry groups. The representatives highlighted their concerns,
Australia’s top banks raise $82bn
Australia’s four big retail banks and Macquarie, the investment bank, have raised a combined $82bn of government-guaranteed debt since October, helped by their position as among the most highly-rated banks in the world.
Weekend catch-up
In case you missed these stories:
- Former Morgan Stanley banker jailed
A Hong Kong judge on Friday handed down a record seven-year prison sentence for insider dealing in the territory, capping the prosecution of Du Jun,
Overnight markets: Fluctuating
Asian stocks fluctuated on Monday in thin trading amid regional holidays. Markets in Japan, Singapore, Malaysia, Indonesia, the Philippines and India were shut for holidays. Futures on the S&P500 Index lost 0.2% after the gauge added 0.3% on Friday amid analyst upgrades of key manufacturing companies.
The Weekender
On FT Alphaville this week,
- CMBS loan delinquencies ticked steadily upward.
- Judge Jed Rakoff 3, SEC 0.
- MOST’s reasons to be cheerful.
- £130bn in further losses for UK banks.
- Lehmania,