February, 2011
Swiss banks all stirred up
Two Swiss bank fallers at Tuesday morning pixel time:
Why the sharp-ish move?
The FT reports that Credit Suisse banker, Christos Bagios, has been arrested in connection with the US’s long-running investigation into tax evasion and Swiss banking secrecy.
Gaddafi’s market
Related link:
Desperate Gaddafi clings to power – FT
Michael Pettis on China’s very own zaiteku
Here’s something for anyone who thought last week’s bank lending figures from the People’s Bank of China showed the country was succeeding in its tightening efforts.
It’s a statement from PBoC member Sheng Songcheng.
Further reading
Elsewhere on Tuesday,
- Four questions for Ben Bernanke.
- Prophet motive: Islam and capitalism.
- When surging oil starts to break the global economy.
- The Wall Streeter’s guide to the Hamptons.
Pink picks
Comment, analysis and other offerings from Tuesday’s FT,
Gideon Rachman: A grubby Libyan lesson in realpolitik
Another week, another revolution, writes the FT columnist. Muammer Gaddafi of Libya may soon become the third Arab president to be swept from power in little more than a month.
Snap news
Breaking pre-market news on Tuesday,
- BHP Billiton to buy Chesapeake shale gas assets for $4.75bn – statement.
- Moody’s changes Japan’s Aa2 rating outlook to negative – statement.
- Zurich Financial buys $1.67bn stake in Santander’s Latin American unit- statement.
China bears and creative shorting
Japan is not only paying for the consequences of China’s cheap-renminbi policy with its persistently high yen and pressures on its exporters.
It is also providing a neat back-channel for renowned China bears,
From Libya to Saudi Arabia
Definitely the strangest sovereign rating action we’ve seen in a while:
Fitch Ratings has downgraded Libya’s Long-term foreign and local currency Issuer Default Ratings (IDR) to ‘BBB’ from ‘BBB+’ and placed them both on Rating Watch Negative (RWN).
TBTF, Greek banks datapoints
Generally a poor outlook for the chances of a merger between National Bank of Greece and Alpha Bank on Monday, for quite a few reasons: an awkward history of past attempts, disputed valuation, plus …
Markets Live transcript 21 Feb 2011
Markets Live chat transcript for the chat ending at 12:30 on 21 Feb 2011. Participants in this chat were: bryce.elder Tony Tassell BETin hats, on ROTR. BE BEAnd welcome to another Markets Live
Exposure in Gaddafi’s Libya
As the Great Socialist People’s Libyan Arab Jamahiriya comes crashing down, despite regime attempts to butcher demonstrators — here’s a timely reminder on corporate exposure.
Much of it, as you’d expect,
From imbalances to imploding banks
Here’s a chart to ponder as regulators continue their forensics of the financial crisis:
It’s countries’ current account balances in 2007 against the change in the non-performing loan ratios of their banking systems between 2007 and 2009.
Waitrose vs Webvan
Advantage Delia at pixel time:
Shares in Ocado were down 4 per cent on Monday — after a big run in recent weeks — on news that John Lewis-owned Waitrose is muscling in on its core M25 market.
Now,
A problem for Portugal, charted
From Bank of America Merrill Lynch’s Thanos Vamvakidis (a former IMF economist) — a chart to kick off a week that looks like it might be heavy on eurozone newsflow:
Further reading
Elsewhere on Monday,
- Why Bahrain could trigger a new financial crisis.
- Lehman’s ‘goat poo’ securities.
- Ferguson’s six reasons the West became so dominant.
- Muni panic, and Meredith Whitney’s massive gift to Jeff Gundlack.
Pink picks
Comment, analysis and offerings from Monday’s FT,
Clive Crook: In a flap over America’s deficit
Washington is quarrelling its way to a government shutdown, but not to a remedy for its fiscal problems,
Snap news
Breaking pre-market news on Monday,
- Diageo buys Turkish spirits maker Mey Içki for £1.3bn — statement.
- Rio Tinto says cyclones will affect Q1 iron ore production — statement.
- CSR announces $679m merger with Zoran — statement.
FTfm on AV
Some highlights from Monday’s FTfm.
Asian fund sales fail to materialise
Hopes that rapidly growing Asian economies will fuel the growth of the global fund industry appear to be foundering, with sales in several key markets going into reverse.
Further further reading
For the commute home or while celebrating your favourite President,
- Flash, not the saviour of the universe, says report.
- Federal spending changes, in one chart.
- MBS are profiting again.
- Ivory Coast shuts down branches of SC,
El-Erian vs Bernanke – FT Tilt
Ben Bernanke took his moveable feast of easy money to Paris on Friday — but Mohamed El-Erian is not pleased with what the Fed Chairman had to say.
You can find out why over on FT Tilt — for free and without registration (but you know,
The Irish banking angle in muni bonds
This is a bit of a curio given the muni market’s wider problems and controversies over investor disclosures, but it’s perhaps a lesson in microcosm. From Fitch on Friday:
Fitch Places Muni Bonds on Watch Negative Based on 2/18/2011 Placement of Allied Irish Bank on RWN
Fitch Ratings-New York-18 February 2011:
Webvan man unloads after hours
If you thought Alphaville wouldn’t be watching the RNS feed at 6.30pm on Friday night Mr Steiner, CEO of Ocado, you were sadly mistaken.
We were and spotted your sneaky sale of 2m shares.
From RNS:
Guest post: Wanted – a new carbon sheriff
Last month Europe’s carbon trading industry was rocked by a series of cyber thefts — including the stealing of €10m worth of European Union emissions allowances (EUAs), which took place in Prague. Daniel Butler,
More for less, regulatory edition
A late (for Congress) night on Thursday left the Obama administration’s budget request for the SEC in tatters. According to Politico’s David Rogers:
Democrats failed to restore $131 million for the Securities and Exchange Commission,
Your chance to quiz CME Group
If you’re keen to find out more about the causes of this…
You might be interested in this.
FT Energy Source is asking for your questions to Terry Duffy and Craig Donohue, the chairman and chief executive of CME Group,
The shape of things to come, Centamin Egypt datapoint [updated]
Ructions in Centamin Egypt shares at pixel time (via Reuters):
That’s following newswire reports that employees at Centamin’s Sukari gold mine have used their newfound political freedoms to stage a sit-in demanding that it’s handed over to Egyptian ownership.
One (short-term) view on Portugal
Portuguese bonds have seen a pressured week — what with speculation the country could soon request a bailout and general indecision amongst EU policymakers.
But so far rates on short-term borrowings have been pretty capped.
Markets Live transcript 18 Feb 2011
Markets Live chat transcript for the chat ending at 12:13 on 18 Feb 2011. Participants in this chat were: Neil Hume, FT bryce.elder NHhola Rabble NHwelcome to ML NHand yes