January, 2010
US non-farm payrolls FALL 85,000…
… in December, the Bureau of Labor Statistics said on Friday.
That’s right a FALL of 85,000.
Now, that’s a big disappointment and well below expectations, which admittedly were all over the place.
A second (lien) helping of Hamp
So the second lien portion of the US Treasury’s mortgage modification scheme is reportedly “on hold.”
This shouldn’t be a major surprise since the programme, called 2MP, an add-on to the Home Affordable Mortgage Modifaction Plan (Hamp),
Lunch Wrap
On FT Alphaville Friday morning,
- On sale today from the Bank of England.
- Introducing Bank of Beard.
- AIG and the Fed, above water or drowning?
- A yen for liquidation?
- The tiramisu market in Further reading.
Markets Live transcript 8 Jan 2010
Markets Live chat transcript for the chat ending at 12:12 on 8 Jan 2010. Participants in this chat were: Neil Hume, FT Bryce Elder
NH
Hola
NH
we’re late
NH
It’s 11.04
On sale today…
… corporate bonds from a rather unusual seller: the Bank of England.
Yes, on Friday the BoE will begin selling some of the corporate bonds it started buying back in January 2009, as part of its programme to inject liquidity into the financial system.
AIG and the Fed, not above water but drowning?
Thursday’s story, that the Timothy Geithner-headed Federal Reserve Bank of New York tried to cover up certain details of mega-insurer AIG’s bailout in 2008, has finally prompted some responses from US Treasury — where Geithner is now head.
Bank of Beard
That’s the homepage of Richard Branson’s new acquisition; Church House Trust, which he is planning to use as a platform to launch a retail banking business in the UK.
Or as the man himself puts it in the offer document:
A yen for liquidation?
So how much of yesterday’s yen move was really down to the threat of devaluation from Japan’s new finance minister and how much was just market positioning?
Sue Trinh, senior currency strategist at RBC Capital Markets poses the question with the below chart:
Further reading
Elsewhere on Friday,
- The ultimate guide to 2010 investment predictions and outlooks
- Move over London and New York: 10 emerging financial centres.
- The tiramisu market: the top looks good but underneath…
Pink picks
Comment, analysis and other offerings from Friday’s s FT,
John Cassidy: Is Ben Bernanke descended from the Bourbons?
Behind his white beard, Federal Reserve chairman Ben Bernanke has a wry sense of humour,
Snap news
Breaking pre-market news on Friday,
- Richard Branson’s Virgin Money to acquire Church House Trust, which it will use as a platform to “develop a retail banking business in the UK” – statement.
- RBS announces sale of fund management assets to Aberdeen Asset Management – statement,
How thick is Tim Geithner’s skin?
The AIG CDS story has been smoldering for so long now that most ordinary mortals are left either confused or bemused, or both.
What is it that Janet Tavaoli keeps rabbiting on about? Are those Bloomberg guys obsessed,
(Not so) deceitful journalism (updated)
Interesting story published earlier on from the New York Times’ Dealbook site on Thursday:
Starting in November 2008, the Federal Reserve Bank of New York under Timothy Geithner began urging American International Group,
China’s new New Deal
Keeping with Thursday’s China theme here on FT Alphaville, a mildy diverting report has just landed from HSBC.
It examines how the change in government investment policy will affect the construction,
Why this is not the onset of a new secular bull market
By David A. Rosenberg, chief economist at Gluskin Sheff.
Related link:
Dave’s gonna hit someone – FT Alphaville
I move markets, therefore I am a US NFP
On Friday, the preliminary December numbers for US non-farm payrolls will be published.
Consensus is for a decline of 8,000 after November’s 11,000 drop — a smaller-than-expected fall for most of the market,
Lunch Wrap
On FT Alphaville Thursday morning,
- An extra 4.04bps in China.
- More on that gilded Gilt auction.
- China, iron ore and Frank Timis.
- The yen falls off a currency cliff.
- Libor seesaws and China soap operas in Pink picks.
Markets Live transcript 7 Jan 2010
Markets Live chat transcript for the chat ending at 12:18 on 7 Jan 2010. Participants in this chat were: Neil Hume, FT Tracy Alloway, FT Bryce Elder
NH
Halló
NH
good morning
More on that gilded Gilt auction
UK debt: Hot cakes or hot potatoes?
Wednesday’s successful gilt auction prompted a wave of patriotic commentary. This, for instance, is from The Independent’s David Prosser who says Britain’s bonds are literally selling like warm pastries:
How do you say competitive devaluation in Japanese?
More goings-on in Asia this Thursday morning, as Japan’s new finance minister broke with his predecessor, saying he favours a weaker yen over a strong one.
Naoto Kan’s currency-opining promptly led to the below move currency move:
China, iron ore and Frank Timis (updated)
You can’t keep a good man down.
On Wednesday, the irrepressible Frank, ‘I do a lot of good work for charidee’, Timis was back with another deal — this time for his iron ore play African Minerals.
A state-owned Chinese industrial conglomerate,
That extra 4.04bps in China
Europe is waking up to falling shares across Asia this Thursday morning:
The reason?
From the central bank of China’s website:
Those are the offered terms of a 60bn yuan ($8.8bn) auction of three-month Chinese bills.
Further reading
Elsewhere on Thursday,
- A stark raving mad ECB exec?
- An eyebrow-raising Brazilian CDO.
- “Inflation may be the next dragon to slay.”
- Did demand for credit really fall?
- Archie Norman’s email to ITV staff.
Pink picks
Comment, analysis and other offerings from Thursday’s FT,
Gillian Tett: Japan and US in Libor seesaw
As 2010 gets underway, investors around the world are breathlessly watching to see what might happen to the dollar next – in relation to the yen,
Snap news
Breaking pre-market news on Thursday,
- Sainsbury reports strong Christmas trading, with third quarter like for like sales up 3.8% – statement.
- AstraZeneca reaches agreement with Teva over Nexium and Prilosec patents – statement.
CDS report: Remember Iceland?
Gavan Nolan of Markit wrote this CDS report
Credit indices outperformed stocks for the second-day running and fulfilled their promise of breaking through key resistance barriers. The Markit iTraxx Europe index closed at 68bp,
Moral hazard for the massess
What’s good for bankers should be good for everyone, right?
That’s certainly the view of the National Assembly of Kuwait, which on Wednesday voted through a bill demanding that the government buy up all consumer debt,
Stimulus strains in Latam…
What’s going on in Argentina?
On Wednesday, Reuters was citing a local Buenos Aires TV station called C5N as saying that President Cristina Fernandez has called for the resignation of central bank president Martin Redrado.
UK debt is still wanted?
Pimco may be cutting its holdings of UK debt and be fretting about the 80 per cent chance of a ratings downgrade, but there are plenty of other investors keen to get their hands on government paper – if Wednesday’s auction of £4bn of 2015 gilts is anything to go by.
Lunch Wrap
On FT Alphaville on Wednesday morning,
- FSA goes after former iSoft directors.
- TrimTabs on that ‘US government-rigged stock market’.
- Buffett/Kraft conspiracy theories.
- M&S disappoints,