March, 2011
Of FARTs and fire sales
As Irish Life & Permanent looks about to complete Ireland’s nationalisation of its entire domestic banking system…
More abbreviation fun on Tuesday with the mooted ECB facility to replace emergency loans from Irish national central banks,
Don’t bet on Japanese repatriation
There’s been a lot of talk about how repatriation of funds will affect the yen in the weeks and months to come.
Most believe the flow of funds back into Japan will see the yen strengthen. There are,
CPP’s identity crisis
The price action on Tuesday morning in CPP Group, London’s latest IPO flop, following its clash with the FSA.
For context, the March 2010 float price was 235p. Ouch.
Further reading
Elsewhere on Tuesday,
- The great Australian bank robbery.
- On dead and dying industries.
- How did London get away with it?
- Sports Stadium bonds are in trouble.
- The rise and fall of Fannie and Freddie.
Pink picks
Comment, analysis and other offerings from Tuesday’s FT,
Tadashi Nakamae: Japan could use a dose of rising bond yields
Japan’s recent twin disasters have prompted questions about the country’s ability to issue new debt to raise money to rebuild its ruined towns and infrastructure.
Snap news
Breaking pre-market news on Tuesday,
- Wolseley H1 profit up 64 per cent on cost cutting, demand – statement.
- Kazakhmys net income rises to $1.49bn from $602m – statement.
- Man Group adjusted full-year pretax profit $560m,
Further further reading
For the commute home, where your productivity gains are measured in trash bags taken out and dishes washed,
- A preview of the upcoming film Too Big To Fail, starring Paul Giamatti as Ben Bernanke and James Woods as Dick Fuld.
US families and attitudes toward financial risk
What impact did the crisis have on the attitudes of American families toward financial risk?
A paper published last week by the Federal Reserve, and cited in a speech by Elizabeth Duke on Thuesday, begins to answer this question by looking at how US households’ wealth,
Price-level targeting: no chance
Former CEA chair Cristina Romer talks to Ezra Klein:
Ezra Klein: You’ve also criticized the Federal Reserve for not doing more. What would you like to see them doing?
Cristina Romer: I’m teaching a course this semester on macro policy from the Depression to today.
More on uncertainty and capital controls
In a previous post about the efficacy of capital controls, we interpreted a passage from Reinhart & Rogoff’s epic This Time is Different by saying “there remains an awful lot we simply don’t know about the consequences of capital flows,
FSA vs CPPGroup
Profit warning du soir:
CPPGroup Plc (“CPP” or “the Group”) announces that it is in discussions with the FSA in relation to certain issues surrounding the sale of the Group’s Card Protection and Identity Protection products. The FSA’s investigation only relates to such of the Group’s products as are sold into the UK,
Standard Bank says Chinese copper market cause for concern
We’re calling it the “The Great Chinese Commodity-as-Collateral Financing” fiddle.
That is, the purchase of commodities like copper on deferred payment terms for the sole purpose of raising cheap financing for reinvestment in higher yielding assets.
Libyan crude, liberated?
On Monday, Qatar gave diplomatic recognition to Libya’s rebels.
On Saturday — Qatar Petroleum had agreed to market Libyan oil controlled by the rebels to international buyers.
Now there’s this via Reuters,
The ‘Banks Under Restructuring’ programme
BURP, for short.
Oops. Excuse us. Manners.
Actually it looks like ‘Facility for Banks Under Restructuring’ is the working title for a European Central Bank plan to advance loans to Ireland’s banks — to replace their reliance on Emergency Liquidity Assistance from the national central bank.
Some curious silver forward patterns
Another day, another reoccurring pattern in London silver forward fixings.
For example, spot the negative oddity here:
It’s been apparent for at least three days on the trot.
And nope, we don’t know exactly what it means either.
Japanese utilities have a ‘Tepco moment’
A new phase in Tepco’s “BP moment”: just like the whirlpool created by the massive tsunami after the March 11 earthquake, Japan’s biggest electricity provider and operator of the crippled Fukushima nuclear power plant is dragging peers into its own troubled vortex.
Markets Live transcript 28 Mar 2011
Markets Live chat transcript for the chat ending at 11:17 on 28 Mar 2011. Participants in this chat were: Neil Hume, FT bryce.elder NHHola markets rabble NHwelcome Markets Live
The Chinese time deposit conundrum
This is interesting from BNP Paribas on Monday:
As explained, the chart shows Chinese deposit holders seemingly getting more yield-focused in 2011, shifting current account and demand deposits into higher yielding time deposits.
Being Ben Bernanke
April 27.
Mark the date in your diary.
It’s the Federal Reserve’s first quarterly news conference — Ben Bernanke’s chance to answer his critics and speak up for his policies (and opportunity for the fourth estate to indulge in a spot of Fed bashing).
A very special collapse in world trade
How big the fall in world trade in 2008/2009?
THIS big:
According to a new discussion paper published by the Federal Reserve global merchandised trade volumes contracted by a massive 19 per cent during the crisis.
Cable unwinds
The post budget sell-off continues, leaving cable close to an important support level at $1.5980.
Next stop $1.5750, according to chart watchers.
But does the weakness reflect worries that the
Jabre’s ‘$300m error’: Japan dunnit [updated]
In our occasional series on the impact of the March 11 earthquake and tsunami on Japan-focused investors, here’s an intriguing tale of Philip Jabre’s $300m blunder.
It’s rare to hear such admissions — let alone explanations — from the mouth of the former star trader at GLG.
For the bots: Anne Hathaway is NOT Warren Buffett
You hardcore financial types might have missed the below FT story, given it was in the Film & Television section of Friday’s paper and concerned a Hollywood starlet.
But wait! It’s financially relevant.
Further reading
Elsewhere on Monday,
- The euro straitjacket.
- High Vix volumes and ETFs.
- Five reasons for the world to care about China’s new five-year plan.
- What do private jets tell you about companies?
- The $300m Japan blunder.
Pink picks
Comment, analysis and other offerings from Monday’s FT,
Clive Crook: Bernanke braves the Fed-bashers
Ben Bernanke, chairman of the Federal Reserve, chose an interesting moment to announce, as he did last week,
Snap news
Breaking pre-market news on Monday,
- AstraZeneca to pay $1.1bn to resolve US transfer pricing case — statement.
- Porsche prices €5bn capital increase at €38 a share — statement.
- Actelion hits back at Elliot Advisors — letter.
FTfm on AV
Some highlights from Monday’s FTfm.
Industry cool on UK housing fix
A push by the UK’s coalition government to encourage greater institutional investment in the housing market appears doomed to failure.
The history of US finance in one very, very long chart
PowerPoint smackdown.
We popped this in further further reading but it’s cool and weekend-friendly enough to warrant a short Friday post. (You may have seen this before but we hadn’t, so please indulge this geekery.)
The NY Fed’s Liberty Street Economics blog on Friday flagged an epic testimony to graphic design and American financial history.
Further further reading
For the commute home, or before your memorial Liz Taylor movie marathon this weekend,
- How the Chinese, Indians, Russian, Egyptian, Brazilian, and Americans spend their money.
- Fitch: 11 public finance defaults in the US since 1999.