September, 2009
No Mr. Bond, I expect you to die
As if the dollar needed any more rattling on Tuesday (chart courtesy of CNBC):
We now hear via Caijing Magazine that China is planning to sell up to 6bn worth of yuan-denominated sovereign bonds in Hong Kong – the first sovereign sale of its kind in an offshore market.
Rampant alpha – Goldman Sachs edition
The chart below tracks the performance of the hallowed Goldman Sachs European “conviction buy list” relative to the MSCI Europe index.
It shows that Goldman’s analyst calls have outperformed the index by 14 per cent since January,
Too much chocolate can make you feel sick
As shareholders in Kraft are discovering on Tuesday. Consider the share price moves displayed in the screenshot below:
In light of that share reaction will Kraft come back with a higher offer? And if so,
The smell of burnt fingers…
is wafting across the Square Mile on Tuesday.
From Data Explorers, we present the short interest in Yell.
And the recent price action in the heavily indebted directories group.
Today’s advance seems to have been caused by Cazenove,
Lunch Wrap
On FT Alphaville Tuesday morning,
- All eyes on gold, again.
- What’s driving gold, again.
- Kingfisher springs a leak.
- Alpha advertising.
- Housing market to the rescue.
- UK manufacturing,
Italy, making the Medicis proud
From the country that brought us the original letter of credit, some creative thinking to rival California’s (via Bloomberg):
Sept. 8 (Bloomberg) — Italy’s Industry Ministry is considering the possibility of introducing credit “vouchers” that companies can spend to obtain loans from any bank,
Markets live transcript 8 Sep 2009
Markets live chat transcript for the chat ending at 12:03 on 8 Sep 2009. Participants in this chat were: Neil Hume, FT (NH) Miles Johnson, FT (MJ) NH:good morning NH:and welcome to Markets Live
What’s driving paper gold, redux
Gold is rallying hard again on Tuesday, so we thought we’d present the latest round of theories on what might be driving the yellow metal higher.
First, there was the UNCTAD trade and development report released late on Monday calling very bluntly for a new reserve currency to replace the dollar — referencing not just the SDR,
Annie Leibovitz’s financial Doomsday clock
The ups and downs of artists’ and photographers’ lives are generally beyond the scope of FT Alphaville’s expertise, with the occasional exception, perhaps, of the financially savvy ones such as Damien Hirst or,
UK manufacturing output in context
Courtesy of Sean Corrigan at Diapason Commodities. Click to enlarge.
Related link:
UK manufacturing output jumps three times as much as forecast – Bloomberg
Housing market to rescue the UK
Here’s an alternative view on the UK economy from ResearcH2, the analytical arm of real-estate advisers BH2.
The team there has long presented a defence of the UK economy, saying the length and depth of downturn has been way overstated by commenters.
Alpha advertising
As asset management houses look to stay sharp, constantly improve and deliver the alpha investors require — Inalytics, the specialist manager evaluation firm, continues its in-depth analysis into the identification of manager skill with the launch of a new whitepaper unveiled today [Monday].
Kingfisher springs a leak
Some red faces at DIY group Kingfisher on Tuesday.
The company has been bounced into the early release of its half-year trading figures:
It has come to our attention that, due to an administrative error,
Barcap say speculators are not to blame!
Last Friday the CFTC re-categorised the way it presents trader positions in its weekly report to reflect more specifically the type of contracts being held by “managed money” and “swap dealers” — ie,
M&A is not even resting
Who said M&A activity was “resting” – if not dead (for now)? Indeed, even a month ago, deal-making worldwide was looking rather like Monty Python’s proverbial dead parrot.
In fact, as FT Alphaville recently noted,
All eyes on gold, again
Spot gold hit $1000 per troy ounce on Tuesday morning, so we thought we’d provide readers with this self updating chart to keep watch:
Related link:
What’s driving paper gold? – FT Alphaville
Further reading
Elsewhere on Tuesday,
- UN plans for new world monetary system have come too late.
- Why Sweden should join the Euro Zone.
- Peak hurricane season is here.
- Will the real price of gold please stand up?
- Buy Bernie Madoff’s beach house for $9m.
Pink picks
Comment, analysis and other offerings from Tuesday’s FT,
Gideon Rachman: The crude realities of (oil) diplomacy
Politicians know that voters will punish them if fuel prices soar. But they also know that if they openly put the search for oil at the heart of their foreign policies,
Snap news
Breaking pre-market news on Tuesday,
- Deutsche Telekom and France Telecom plan to merge T Mobile UK and Orange – statement.
- Plus Markets Group to begin liquidity scheme to attract higher trading volumes – statement.
Cadbury vows to fight Kraft offer
Cadbury has vowed to mount a staunch defence against an unsolicited £10.2bn ($16.7bn) takeover offer from Kraft of the US amidst rapid consolidation in the confectionery industry. On Monday Cadbury rejected a cash and stock offer from Kraft,
Cadbury ‘could fetch’ $21bn, analysts
Cadbury, the confectioner that rejected Kraft Foods’ $16.7bn bid on Monday, may attract suitors ranging from Nestle to Hershey and sell for as much as $21bn, according to analysts, reports Bloomberg. Shares in UK-based Cadbury surged past the offer price after it spurned Kraft’s bid,
Regulators agree rules on bank capital
Regulators have agreed tough new rules for banks that flesh out proposals agreed by G20 finance ministers at the weekend that would force many in Europe to raise tens of billions of euros in capital in coming months.
Franco-German JV for UK mobile arms
Deutsche Telekom is close to finalising a deal with France Telecom to form a joint venture out of their UK mobile businesses and seize first place in the competitive UK market. An agreement involving France Telecom’s Orange UK and Deutsche Telekom’s T-Mobile UK could be announced as early as Tuesday.
Goldman funds take 21% of Eurotunnel
The company that runs the undersea tunnel between England and France will gain a large institutional shareholder for the first time in two decades after two funds managed by Goldman Sachs opted to convert their bonds in Groupe Eurotunnel into shares.
Zain investors prepare to sell big stake
Big shareholders in Zain, Kuwait’s largest telecoms operator, are preparing to sell a 46% stake in the company for about $13.7bn, in what could be one of the largest financial transactions on record in the Gulf.
Koenigsegg secures Saab funds
Koenigsegg Automotive, the sportscar maker, is poised to announce additional funding behind its purchase of Saab Automobile after weeks of uncertainty over the deal. The tiny Swedish manufacturer, which makes ultra-fast,
Chinatrust may raise more cash
Chinatrust Financial said on Monday it was planning to raise more cash on top of a $1.34bn private placement announced on Friday, but declined to comment on reports it had outbid rivals for AIG’s Taiwan unit,
LSE backs high-frequency traders
High-frequency traders, now under regulatory scrutiny in the US, on Monday gained support from London Stock Exchange chief Xavier Rolet, who said said they were a necessary source of liquidity for exchanges.
Hungarian MTF enters equities fray
Europe’s sixth alternative trading platform for equities launched on Monday as trading started on Quote MTF, a low-cost venture based in Hungary and backed by a Canadian entrepreneur. It is the latest so-called “multilateral trading facility” to emerge in Europe as the incumbents struggle with low volumes,
German bund yields hit lows
Short-term German bund yields fell to record levels on Monday amid expectations that interest rates will remain at historic lows well into 2010. Two-year bund yields dropped to 1.05%, the lowest since records began in 1991,