August, 2011
Dead cat splat
Latest ‘risk on’ rally has been pronounced dead after seven hours in the UK…
… and just 30 minutes on the other side of the Atlantic, following some real news…
… a weak ISM report that has added to concerns about the faltering US economic ‘recovery’:
Cyprus SOS
An amazingly impassioned statement on Monday from Bank of Cyprus on the island’s fiscal crisis, warning that a bailout is imminent. Rough translation of an excerpt via BankingNews.gr and Reuters:
By our inaction we are compromising the ability of the state to refinance and the consequences will be immediate and severe.
Cleary Gottlieb’s new client
Great spot by John Dizard — an appointment to raise eye-brows:
Last week, it was announced that Cleary Gottlieb, the New York headquartered international law firm, had been engaged by the Hellenic Republic.
Safe haven alternatives, London property edition
As FT Alphaville and others have duly noted, the search for the ultimate safe haven alternative is on.
RBS now points to one possible alternative, London luxury-home prices.
From their European rates morning research note:
Anatomy of a failed Chinese railway bond
By any account, last month was not a good time to sell a Chinese bond backed by its railways.
A local cash crunch had already limited the pool of available buyers, while concerns about the country’s local government debt problems persist.
Markets Live transcript 1 Aug 2011
Markets Live chat transcript for the chat ending at 11:28 on 1 Aug 2011. Participants in this chat were: Neil Hume, FT bryce.elder
NHHola rabble
NHsorry for being late
NHjust watching the open over of the Second Test
What price UK QE2?
File under faltering economic recovery.
Via Reuters, the UK manufacturing PMI survey for July:
-UK MARKIT/CIPS MANUFACTURING PMI 49.1 IN JULY VS REV 51.4 IN JUNE (REUTERS POLL 51.0), LOWEST SINCE JUNE 2009
- UK MARKIT/CIPS MANUFACTURING PMI NEW ORDERS INDEX 47.6 IN JULY,
Sober times at Punch Taverns
The heavily indebted Toxic Pub Company – aka Punch Taverns – has completed its demerger.
In early trading on Monday morning the (ahem) good bit — managed business Spirit Pub Company — was trading around 54.55p,
Do not underestimate rising EM inflation risk
The official Chinese PMI for July came in at 50.7 — another month-on-month decline — although it was not as high as expected. In fact, it suggests we could be seeing signs of a soft landing in China.
Further reading
Elsewhere on Monday,
- Star-spangled default avoidance edition! Go America!
- Though mind unfinished business in the House.
- And mind the jobless, “left out in the cold with nothing.”
- And mind that which shall not be named,
Pink picks
Comment, analysis and other offerings from Friday’s FT,
Ralph Atkins: An uncomfortable final stretch for Trichet
Other eurozone policymakers have fled on holiday, hoping for respite from the region’s debt crisis,
Snap news
Breaking pre-market news on Monday,
- HSBC sells 195 New York retail branches to First Niagara Bank — statement.
- Frank Timis says Shandong Iron & Steel Group to invest $1.5bn in the Tonkolili iron ore project — statement.