November, 2009
Oh the (sovereign) liquidity!
Here’s a sovereign CDS curio for you.
Which do you think would have the most liquid collective CDS — emerging markets or developed markets?
Here’s the answer, courtesy of Fitch Solutions:
Remember that,
BoE minutes reveal QE split
Minutes from the Bank of England’s last policy meeting on November 4 and 5 have been released. And there are number of points to pick over.
The most interesting is that the MPC was split three ways in voting to extend asset purchases by £25bn.
Call off the search, ITV edition (update)
It’s over.
As the FT revealed overnight, ITV has finally found a chairman: failed MP former Asda and Energis boss Archie Norman.
And the broadcaster is making the most of Norman’s CV, with a detailed biography in Wednesday’s press release:
Another shipping firm taps the bond market
In further signs of the financing pressure facing the shipping industry, DryShips , an Athens-based commodity-focused operator owned by Greek shipping tycoon George Economou, announced late on Tuesday it had signed a waiver agreement with Deutsche Schiffsbank on $117.5m of outstanding debt.
MUFG and Morgan Stanley: The (slow) metamorphosis of a JV
It was portrayed as both a godsend for Morgan Stanley and something of a coup for Mitsubishi MUFJ Group, Japan’s biggest bank, when in October 2008 it emerged that MUFG would take a 20 per cent stake in the US bank for $9bn.
Further reading
Elsewhere on Wednesday,
- The madness of the inflation hawks.
- IPOs are back.
- Adam Smith in 10 minutes.
- Can options spikes be a coincidence?
- Faber on gold, and just about everything else.
Pink picks
Comment, analysis and other offerings from Wednesday’s FT,
Martin Wolf: Grim truths Obama should have told Hu
Barack Obama, president of the US, met Hu Jintao, president of the People’s Republic of China,
AV after dark
On FT Alphaville late Tuesday,
- America’s Next Top Capitalist: Magic Johnson vs Goldman vs Wal-Mart.
- Obama’s fraud busting task force.
- Goldman and Buffett team up to bail-out small US businesses.
Snap news
Breaking pre-market news on Wednesday,
- KBC asks for its shares to be suspended, European Commission expected to decide on asset sale 12pm CET Wednesday – statement.
- ITV appoints Archie Norman as chief executive officer – statement.
Hershey, Ferrero plot Cadbury bid
US chocolate giant Hershey is considering launching a bid for Cadbury – possibly in partnership with Italy’s Ferrero – that could help the UK confectioner fend off a hostile takeover by Kraft Foods,
Banks face bond downgrades
Many banks are facing possible multi-notch downgrades to their hybrid bonds following a change in the methodology used by Moody’s Investors Services. The ratings agency on Tuesday said it would announce within two days which hybrids would be put on review for downgrade following changes in its review system.
Goldman, Buffett, to help small businesses
Goldman Sachs apologised for its role in the financial crisis on Tuesday pledged $500m over five years – or about 2.3% of its estimated bonus and salary pool for 2009 – to help 10,000 US small businesses recover from the recession.
Delta readies for $1bn JAL deal
Delta Airlines and alliance partners have prepared a $1bn package for Japan Airlines to lure the carrier from a grouping with American Airlines, reports Bloomberg. Delta and other SkyTeam members may buy $500m in Japan Air shares or convertible securities,
Lazard names Kenneth Jacobs
Lazard on Tuesday said it has appointed veteran banker Kenneth Jacobs as its new chairman and successor to Bruce Wasserstein, whose unexpected death last month left a void atop the investment bank. Jacobs,
UBS sets out growth plans
UBS outlined a bold set of growth targets on Tuesday, including ambitions to generate SFr15bn ($14.8bn) of pre-tax profits within three to five years, as the troubled Swiss bank sought to take back the initiative after weeks of bad news encompassing regulatory fines and deep losses.
SC Johnson vies for Sara Lee unit
SC Johnson & Son has joined the bidding for Sara Lee’s air-freshener business, potentially creating a formidable player in Europe’s household-care products business, reports the WSJ. Bidding for the unit,
Apollo plans NYSE listing
Apollo Management, the US buy-out firm headed by former Drexel Burnham Lambert executive Leon Black, plans to list on the New York Stock Exchange in coming weeks. Apollo, which has $38.3bn in assets under management,
China deals blow to Microsoft
A Chinese court has ruled that Microsoft infringed a Chinese software maker’s intellectual property rights in a surprise decision that has renewed worries among foreign patent experts about China’s management of IPR disputes.
Fiscal bill central to Queen’s Speech
Gordon Brown will on Wednesday put fiscal discipline at the heart of the annual Queen’s speech to force ministers to accept budget cuts and boost his own credibility on public spending ahead of an election battle with the Tories.
Chinatrust to buy AIG Taiwan stake
Chinatrust plans to pay $660m for a 30% stake in Nan Shan Life, Taiwan’s second-largest life insurer, after losing its bid to buy the business from AIG, reports Bloomberg. Chinatrust, Taiwan’s third-biggest financial company by market cap,
Fears of block sale hit Hynix
Shares in Hynix Semiconductor, the South Korean chipmaker, fell on Tuesday after Korea Exchange Bank admitted that creditors might be forced to divest part of their stake in a block sale on the stock market.
BofA director: Merrill deal a ‘mistake’
One of Bank of America’s leading directors described the acquisition of Merrill Lynch as a “bad mistake” that the bank was “pressured” into completing by the government, according to an email turned over to a congressional committee.
Icap predicts surge in swaps, CDS
Trading in some of the OTC derivatives widely blamed for aggravating the financial crisis is likely to surge if legislators press ahead with proposed reforms, according to Icap, the world’s largest interdealer broker.
Overnight markets: Mostly down
Asian stocks mostly fell on Wednesday, reports Bloomberg, led by Japan’s markets which dropped on share-sale concerns although mining and tech companies benefited from increasing commodities prices. Futures on the S&P500 Index fell 1.1% after the gauge rose 0.1% on Tuesday as gold and copper climbed and crude oil rose for a second day to $79.14 a barrel.
America’s Next Top Capitalist: Magic Johnson vs Goldman vs Wal-Mart
On Tuesday, Bloomberg scooped its rivals with a story that Goldman “cuddly squid” Sachs would be teaming up with Warren Buffett to provide assistance — ranging from counseling to help in obtaining funding — to 10,000 small US businesses.
Obama’s fraud busting task force
We can see the movie potential here, but is it this?
Or this?
On Tuesday, President Obama issued an Executive Order creating the inter-agency Fraud Enforcement Task Force, which is charged with straightening out Wall Street and the financial world beyond.
Goldman and Buffett team up to bail-out small US businesses, Bbrg says
Breaking news on Tuesday: Goldman Sachs and the Sage of Omaha are planning to save Christmas (and 2010) for small businesses across America, according to Bloomberg.
Nov. 17 (Bloomberg) — Goldman Sachs Group Inc.,
Currency ETCs revisited
FT Alphaville has previously delved deeply into the latest product offering from ETF Securities: “collateralised currency securities”, also known as ETCs.
We’re revisiting the topic, but while our conclusions remain unchanged — these are hugely complicated products — we would like to clarify one matter: