October, 2009
ReuPOV? Or how Reuters hopes to avoid mashing news and views
Okay, this is conjecture. The opinions expressed here belong to the author and not to the Financial Times. Reader beware, etc. Check your own facts…
The real reason Thomson Reuters has just agreed to shell out £12m to acquire Breakingviews,
CDS report: US banks tighter after JPMorgan results
Gavan Nolan of Markit wrote this CDS report
European credit and equity markets rallied today as the US earnings season continued its strong start. The Markit iTraxx Europe index tightened by 6bp (6.8%) to 81bp,
Yup, the Dow’s back above 10k
As of 1:21pm ET in New York on Wednesday, it was officially – albeit briefly:
Here’s the proof:
For the first time since October 3rd, 2008, folks.
But before you get too caught up in the hype,
More than you ever wanted to know about death bonds
If you’re not yet familiar with so-called life settlement securitisations – or death bonds – never fear. In a comprehensive primer released on Tuesday, Standard & Poor’s has answered all the questions you never thought to ask.
Those greedy Goldman whispers
We could be polite and call it a “read-across” — from JP Morgan’s Q3 out-performance.
Or we could just say what it is: bull guff, put around by excitable types in the equity markets who see yet another leg in the Great Flash Rally of 2009.
Presenting Emo
Or the Emotion Mirroring System for Online Traders.
This stylish bracelet and bowl are the fruits of a joint venture between Dutch electronics group Philips and ABN Amro, and were designed to help online traders make better decisions.Here’s how the system works: The Emobowl ™ acts as an emotion mirror,
JP Morgan’s fixed fixed income
Here’s an interesting footnote to JP Morgan’s consensus-crushing earnings released on Wednesday.
Net revenue was $7.5 billion, an increase of $3.4 billion, or 85%, from the prior year. Investment banking fees were up 4% to $1.7 billion,
Majority of current RMBS borrowers underwater, Fitch says
How’s this for a negative equity data point: the majority of borrowers whose home loans have been wrapped into a US residential mortgage backed securities transaction owe more on their mortgages than their homes are currently worth,
The Dow at 10,000?
Will today be the day when the Dow recaptures this psychologically important level and we have to release the Rally Monkey from his cage?
Blow- out figures from Intel and JP Morgan were pointing toward a strong start on Wall Street on Wednesday.
Lunch Wrap
On FT Alphaville Wednesday morning,
- Build ‘em up, knock ‘em down in Q3.
- The coming bout of ‘squid outrage’.
- Britain’s biggest shorts and squeezes.
- Problems at the LSE.
- Toxic pub valuations.
JP Morgan reports Q3 EPS of $0.82, net income of $3.6bn
Consensus was for earnings of 49 cents a share and revenue of $24.81bn — which means the bank has just kicked off the third-quarter US financials earnings season by soundly beating expectations.
Here are the details,
KKR’s Chinese lessons
KKR, fresh from its low-key Dutch listing after merging with its Amsterdam-listed European fund, is quietly and steadily stepping up its Chinese shopping activities.
The US buyout firm is expected to announce later on Wednesday a $160m investment in a Chinese lender to small and medium-size businesses,
Markets live transcript 14 Oct 2009
Markets live chat transcript for the chat ending at 12:09 on 14 Oct 2009. Participants in this chat were: Neil Hume, FT (NH) Miles Johnson, FT (MJ) NH:Dave, Dave NH:we are in
Problem at the LSE
According to brokers the London stock exchange is having ‘issues’ accepting new orders this morning.
Here’s the service announcement that’s been mailed to exchange users:
The Exchange is currently investigating an issue affecting our trading system.
The UK’s top 10 shorts and squeezes
Courtesy of Data Explorers.
The shorts:
And the squeezes:
Click here for the criteria and here for a Data Explorers report specifically on RBS.
Related link:
Today I shall short Adecco,
Toxic pub valuations
Another set of results and another impairment charge from the heavily indebted Toxic Pub Company.
Having written down its estate by almost £600m in the past year and a half, Punch Taverns has lopped a further £638m off the value of its managed and tenanted pubs on Wednesday.
Fed slacker fightback
Here’s further evidence that the Fed is somewhat split on the output gap theory and the amount of ‘slack’ in the US economy — and by extension, the inflation and deflation risks that face it.
Slack occurs when the output gap is a negative number — when the economy is below its full potential.
Wall Street rewind and the coming bout of ‘squid’ outrage
Perhaps it has all been just a bad dream.Quicker than you can say “global financial crisis” or “blood on the street”, the big US banks and securities firms have shifted gears and are now preparing to pay their staff a record $140bn in compensation this year.
Build ‘em up, knock ‘em down
Reporting season is underway — look sharp.
The next couple of days will likely set the tone, with sentiment-shaping numbers coming from JP Morgan on Wednesday ahead of third-quarter results from Goldman Sachs and Citi the next day.
Further reading
Elsewhere on Wednesday,
- The lights are dimming for American banks in London.
- What’s next for gold and the dollar.
- Does Jamie Dimon look unhappy?
- More light and joy from Stephen Roach.
Pink picks
Comment, analysis and other offerings from Wednesday’s FT,
Martin Wolf: Rumours of the dollar’s death are much exaggerated
It is the season of dollar panic. These panic-mongers are varied: gold bugs,
AV after dark
On FT Alphaville late Tuesday,
- Baby Boomers working longer, for less.
- US commercial real estate datapoint du jour, Hawaiian hotels edition.
- Public versus private FX forces.
- Moody’s still negative on Spanish banks.
Snap news
Breaking pre-market news on Wednesday,
- Punch Taverns writes pub values down by £663m — statement.
- Earthport says no talks with potential bidders are taking place and it is no longer in an offer period — statement.
Cisco to pay $2.9bn for Starent
Cisco Systems made its biggest bet to date on soaring demand for data transmitted to mobile devices, agreeing on Tuesday to pay $2.9bn in cash for telecoms infrastructure specialist Starent Networks. The deal follows Cisco’s agreement two weeks ago to acquire Tandberg,
RBS eyes 300-branch sale
Royal Bank of Scotland is exploring a government-backed plan to give up all of its 312 RBS-branded branches in England and Wales, in a radical move to satisfy Brussels state aid authorities. The plan – mediated by the UK Treasury – is the proposal favoured by Neelie Kroes,
Lloyds faces £1bn ‘break fee’
Lloyds Banking Group has been told it will have to pay at least £1bn to the government as a form of “break fee” if it proceeds with its plan to exit a scheme to insure £260bn of its assets. The asset protection scheme,
KKR to invest in Chinese lender
A consortium led by KKR is expected to announce on Wednesday a $160m investment in a Chinese lender to small and medium businesses, marking the US buy-out firm’s third deal in mainland China, reports the WSJ.
AIG to sell Taiwan unit for $2.15bn
AIG on Tuesday announced its largest divestment since its rescue last year with a $2.15bn sale on Nan Shan, its Taiwanese life assurance unit, to Hong Kong-based buyers led by a new fund. The US insurer’s sale of Nan Shan,
Macquarie eyes Europe expansion
Macquarie Group is in advanced talks to buy the investment banking operations of Sal Oppenheim, the private European bank, in a deal that would significantly expand Macquarie’s presence in Germany. The deal,
BofA waives privilege on Merrill case
Bank of America has agreed to a request from the office of Andrew Cuomo, New York attorney-general, to waive the attorney-client privilege that Cuomo claims is preventing him from determining whether to bring charges against BofA’s top executives.